New Policies In the New Financial Year for Employees

Early retirement pension

In the previous policy, as of June 30, 2020, eligible Australian and New Zealand citizens and permanent residents can apply for an early withdrawal of a pension amount of up to $10,000.

Into the new financial year, this measure has a further continuation. From July 1, 2020 to September 24, 2020, eligible people can apply for an early withdrawal of an additional $10,000.

It should be noted that the continuation of this measure does not apply to temporary residents.

The deadline for eligible temporary residents to apply for early withdrawal of a pension of up to $10,000 is June 30, 2020.

Work Test Change

From July 1, 2020, the job test for Voluntary Concessional and Non-concessional Contributions will be pushed from the previous 65 years to 67 years, that is, 65 years and 66 years are allowed. People who are 12 years of age make voluntary over payments without having to meet job test standards.

“Working test”, in simple terms, means that you must work at least 40 hours in 30 consecutive days in each financial year. In order to make your fund accept personal pension contributions, and you can ask for deductions.

At the same time, the self-managed pension (Self-Managed Superannuation Fund) has also raised the age limit of spouse contributions (Spouse Contributions) – from the current 69 years old to 74 years old. At the present, people who are 70 years of age or older cannot accept contributions made by others on their behalf.

In addition, the work test exemption also applies here – the person who accepts the spouse’s contribution is 65 or 66 years old. If people between the ages of 67 and 75 want to accept spouse contributions, they still have to meet the requirements of the job test.

Temporarily lower the minimum pension payment

To help retirees survive the new crown crisis, the government has changed account-based pensions and annuities, allocated pensions and annuities, and market-linked pensions and annuities in 2019 The minimum annual payments in financial year -20 and financial year 2020-21 have been reduced by 50%.

Pension and annuity providers calculate the minimum annual payment required on July 1 of each year based on the account balance of the member or annuity. The 50% reduction will apply to the calculated minimum annual payment.

For pensions and annuities that start halfway through the 2019-20 or 2020-21 financial year, the 50% reduction applies to the minimum annual payment calculated in proportion to the account balance on the start date.

Sunday Penalty Rates

According to the Fair Work Commission:

  • Sunday overtime for full-time and part-time workers in the retail industry was reduced from 180% of the original salary to 165%, and temporary employees were reduced from 185% to 175%.
  • Sunday overtime for full-time and part-time workers in the fast food industry was reduced from 135% to 125% of the original salary, and temporary employees were reduced from 160% to 150%.
  • Sunday overtime for full-time and part-time workers in the catering industry was reduced from 160% to 150% of the original salary.
  • Full-time and part-time workers working in pharmacies were reduced from 180% of their original overtime pay to 165% on Sunday, while temporary employees were reduced from 205% to 190%.

Parental Leave Pay-PLP

Previously, employees could only use PLP for a period of 18 consecutive weeks. From July 1, 2020, eligible employees can split their PLPs twice in two years.

Employees can request a fixed-term PLP and a flexible-term PLP.

The first period is a fixed 12 weeks. This needs to be used within 12 months after the child is born or adopted, and cannot be divided into multiple periods.

The flexible period is: up to 30 days / usually starts after the end of the first period / can be used within the flexible period negotiated between the employee and the employer / must be used within 24 months after the child is born or adopted.

National minimum wage increase

The Fair Work Commission announced that the minimum wage in Australia will increase by 1.75% from July 1, reaching $753.8 per week or $19.84 per hour. Different industries will be divided into three periods at different times for growth:

  • Phase I – Effective July 1, 2020:

Frontline medical staff and community workers/teacher and child care services/other basic services

  • Phase 2 – Effective November 1, 2020

Construction industry/manufacturing industry/some other industries

  • Phase 3 – Effective February 1, 2021

Accommodation and Food Services/Arts and Leisure Services/Aviation Industry/Retail/Tourism