PAYROLL

PAYG withholding tax tables


For the 2013 – 14 income tax year, there are no changes to the income tax rates or thresholds. You can continue to use most tax tables.
However, there have been changes to tax tables used for employees that:

* have a Higher Education Loan Program debt or Financial Supplement debt

* were paid back payments, commissions, bonuses and similar payments

* received an employment termination payment or return to work payment

* are seniors or pensioners.

For copies of all tax tables current for 2013-14, refer to Tax tables.
End of further information

2013 Annual wage review

I heard there’s been an increase to the minimum wage – what’s my new rate?

New minimum rates apply from the first pay period on or after 1 July 2013.

Visit Finding the right pay for tools to help you calculate your minimum wages.

What’s the annual wage review?

Every year, the Fair Work Commission review minimum wages in Australia. This is called the ‘annual wage review’.

The review looks at the minimum rates of pay in:

* modern awards

* the national minimum wage – for employees who don’t have an award or workplace agreement.

Any changes to minimum wages start to apply from 1 July.

How much do minimum wages increase?

In 2013 the Fair Work Commission increased minimum wages in the national minimum wage and modern awards by 2.6%.

This increase applies to the minimum wage entitlements of most employees covered by the national system.

Visit Finding the right pay for tools to help you calculate your minimum wages.

For adult employees who aren’t covered by an award or agreement, the adult national minimum wage was increased from $606.40 per week or $15.96 per hour to $622.20 per week or $16.37 per hour. The casual loading will increase from 23% to 24% per hour. This applies from the first pay period that starts on or after 1 July 2013.

When do the new rates start to apply?

The new minimum wages start applying from the first pay period that starts on or after 1 July 2013.

So if the pay week is Wednesday to Tuesday, the new minimum wages start applying on Wednesday 3 July 2013.

If the pay period is fortnightly or monthly, the new minimum wage could start applying later in July.

Is there an increase to penalty rates and loadings?

The penalty rates and loadings in awards are often a percentage of the base hourly rate. For example, rates for working on a Saturday could be time and a half, or an extra 50% on top of the base rate. Any change to the base rate of pay therefore flows through to these penalty rates and loadings as well.

Visit Finding the right pay for tools to help you calculate minimum wages, including penalty rates and loadings.

Do allowances increase?

Yes, most allowances in awards will increase from 1 July.

Visit Finding the right pay for tools to help you calculate minimum wages, including allowances

Work-related allowances (such as leading-hand and industry allowances) in modern awards are a percentage of the ‘standard rate’ in the award. The standard rate is defined in each modern award and is usually the weekly minimum rate of pay for a certain classification. Since the annual wage review increases the standard rate, this will also flow through to any work-related allowances.

Expense-related allowances are increased by the Fair Work Commission to meet the requirements of the relevant modern award. We publish the changes by 1 July each year.

Do piece rates increase?

Yes. Piece rates are increased based on the increase to modern award minimum wages.

Visit Finding the right pay for tools to help you calculate minimum wages.

If I am paid above the modern award, does my employer have to give me the annual wage review increase?

No, as long as your pay stays above the minimum rates that apply to you.

Visit Finding the right pay for tools to help you calculate minimum wages.