Amendments to SCHADS Award

As previously advised, the amendments applicable to the Social, Community, Home Care and Disability Services Industry Award 2010 [MA00100] (SCHADS Award) arising from the 4 yearly review of Modern Awards come into effect from today Friday 1 July 2022.

1 July 2022 Increases

Increase to Compensation Cap – Unfair Dismissal Claims

The income and compensation caps applicable under the Fair Work Act 2009 (cth) (FW Act) for unfair dismissal claims before the Fair Work Commission (FWC) increase from today Friday 1 July 2022, including a range of application filing fees.

The high-income threshold under the FW Act at section 382(b) (iii) for unfair dismissal applications increased to $162,000 (from $158,500). This threshold excludes employees not covered by an Award or Agreement from making an unfair dismissal claim where they earn more than the above amount (Regulation 2.13 of the Fair Work Regulations 2009).

The maximum compensation available under section 392(5) (b) for dismissal claims post – 1 July is $81,000 (from $79,250) being half the amount of the high-income threshold.

Minimum Wage Decision 2022

The national minimum wage increased by 5.2% from today Friday 1 July 2022 with an increase of at least 4.6% applicable to all Modern Award rates to be applied from the first pay period on or after today 1 July 2022.

As previously advised, Jobs Australia will finalise Pay Tables for Members once the Fair Work Ombudsman (FWO) guides are published today 1 July 2022.

Once finalised, Pay Tables will be uploaded to Jobs Australia’s website by early next week with an email to notify Members once they are available.

Superannuation Increase

The superannuation guarantee (SG) rate also increases to 10.5% (from 10%) from today Friday 1 July 2022.

As previously advised, this increase requires employers to contribute an additional half a percent to meet their SG obligations under the Superannuation Guarantee (Administration) Act 1992 (Cth) (the SGAA).

Increase in SG rate

The minimum SG rate is legislated to continue to increase from 10.5% to 12% over the next three years as outlined below.

Year                                                                Charge percentage
Year starting 1 July 2022                               10.5%
Year starting 1 July 2023                               11%
Year starting 1 July 2024                               11.5%
Year starting on or after 1 July 2025           12%

This information is provided by Jobs Australia to assist Members with awareness of the applicable increases and changes commencing from the start of the 2022/2023 financial year.