A school year is determined by the start and finish of school terms: excitement and hope at the beginning of Term 1, and exhaustion and relief at the end of the last term of the year.

The rest of Australia (and a school’s business/finance department) marks the end of the financial year with exhaustion, and then new hope and budgets from 1 July. Governments set many changes in terms of recurring fees, CPI and other conditions from 1 July as well.

This year, from 1 July, the following key changes that may impact schools apply.

1. Superannuation

Employers must pay a minimum of 10 per cent superannuation guarantee for each employee (which is an increase from the previously required 9.5 per cent). Depending on the wording of remuneration in employment contracts and how much an employee is being paid in relation to their classification in an award or enterprise agreement, this additional payment is either paid by the school in addition to the employee’s existing remuneration or by reducing the employee’s take home pay by increasing their superannuation component. Naturally, the latter is not popular with staff.

2. Wage Rates in Awards

The minimum rate for each classification in many awards, including the Educational Services (Teachers) Award, and the Educational Services (Schools) General Staff Award, increased by 2.5 per cent. For a full list of awards and the date from which the increase applies see the Fair Work Ombudsman’s media release. The increased base rate in an award flows on to amend the base rate in an enterprise agreement that applies to employees who would otherwise be covered by the award.

3. Minimum Wage Rate

The adult minimum wage rate also increased by 2.5 per cent, to $20.33 per hour (used in calculating wages for casual employees or part-time permanent employees) or $772.60 per week, based on a 38 hour week. This applies to anyone who is not covered by an award. If an employee is covered by an enterprise agreement and being paid a rate that is less than either the new minimum wage rate or the new base rate in the relevant award (whichever is the higher) then that employee’s wage rate must be increased to the new minimum rate.

4. High Income Threshold for Unfair Dismissal

If an employee is not covered by an award or enterprise agreement, they can only take action for unfair dismissal before the Fair Work Commission if their salary is below $158, 500. If their job classification is covered in an award or enterprise agreement, this limit does not apply.

5. High Income Threshold for Application of an Award

Where an employee’s job classification is covered by an award, many of the award conditions still apply even if the employee is paid above the rate set in that award for their classification. However, the award stops applying where the employee is paid a guaranteed salary over the high income threshold of $158,500.

6. Victoria’s Wage Theft Law

Even though the legislation was passed almost a year ago, on 1 July 2021, it became a crime for an employer in Victoria to deliberately underpay employees or dishonestly withhold employee entitlements, falsify employee entitlement records or fail to keep employee entitlement records. These offences carry fines of up to $218,088 or up to 10 years’ gaol for individuals and fines of up to $1,090,440 for companies.

7. Amendments to the Uniform Defamation Law

And for a change of direction, amendments to the uniform defamation law came into effect, as agreed by the Council of Attorneys-General, in New South Wales, Victoria, South Australia and Queensland. Key amendments include having to prove serious harm in order to take defamation action, and new defences to defamation claims: a public interest defence and a defence for peer reviewed matters published in academic or scientific journals. Other states and territories will be enacting the amendments later this year.