Upcoming Employment Amendments: Employee Deductions and Superannuation

In accordance with the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023, there are two important amendments coming into effect in the coming weeks.

1. Authorised Employee Deductions

From 30 December 2023, employees will be able to provide their employer with a single written authorisation which allows their employer to deduct amounts from their wages/salary that are recurring and are for amounts that vary from time to time. Examples of an authorised employee deduction may include salary sacrifice arrangements or additional employee superannuation contributions.

An authorised employee deduction continues to be allowed, only if it is principally for the employee’s benefit and must be shown on the employee’s payslip. These changes provide greater flexibility for employers and employees to manage deductions without having to have written authorization each time an adjustment is required.

A new written authorisation will only be required to vary the amount of an existing deduction where the initial authorisation specifies the amount of the deduction. Existing deduction arrangements may continue if they meet the requirements of the amendments.

2. Superannuation included into the National Employment Standards

From 1 January 2024, the National Employment Standards (NES) will be updated to include a provision granting the right to superannuation contributions. This means that unpaid or underpaid superannuation can be enforced under the Fair Work Act 2009 by more employees.

Employers are already required to make superannuation contributions for eligible employees according to the superannuation guarantee laws. Compliance with these laws ensures no violation of the NES provision.

The Australian Taxation Office (ATO) will retain its primary responsibility for overseeing employer compliance with superannuation guarantee laws.

The Fair Work Ombudsman will still have the authority to refer cases of unpaid superannuation to the ATO and, when appropriate, pursue unpaid superannuation. This will be done in conjunction with the ATO, operating under the new NES entitlement, and in accordance with terms set by a modern award, enterprise agreement, or other industrial instrument.

For further information, please contact our MPAQ Advisory Team on 07 3273 0800.