Category Archives: Salary packaging

Changes to Real Estate Industry Award

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There are key changes to the Real Estate Industry Award, which you need to have implemented by 2nd April 2018.

There are now 4 levels of employee classification;

  • Real Estate Employee Level 1 (Associate Level)

Employees engaged as a Property Sales Associate, Property Management Associate or a Strata Management Associate will all fall into Level 1 and have the same minimum rate of pay. Two wage rates apply at this level. The first rate applies to employees during their first 12 months of employment and the second rate applies thereafter.

  • Real Estate Employee Level 2 (Representative Level)

Salespeople, property managers and strata managers will all fall into Level 2 and have the same minimum rate of pay.

  • Real Estate Employee Level 3 (Supervisory Level)

Sales, property management and strata management supervisors will all fall into Level 3 and have the same minimum rate of pay.

  • Real Estate Employee Level 4 (In-Charge Level)

Employees who are responsible for the overall operations of an agency will fall into Level 4.

New commission-only standards;

For an employee to be engaged on a commission-only basis from 2 April 2018, they must:

  • Be 21 years of age or older
  • Have a Real Estate Licence of Certificate of Registration
  • Be employed as a salesperson
  • Agree in writing to be employed on a commission-only basis
  • Have worked in the industry as a salesperson for at least 12 months in the last three years
  • Satisfy the new Minimum Income Threshold Amount (MITA) qualification test.

The MITA is satisfied if the employee can show that in a consecutive 12-month period in the three years immediately prior to entering into the commission-only agreement they received a salary (including commission or bonus payments, but excluding allowances and superannuation) at least equal to 125 per cent of the employee’s classification rate under the new Real Estate Industry Award, calculated as an annual amount.

The new MITA will be $52,733 and will increase as minimum rates of pay change each July.

Other things of note;

  • New mobile phone allowance
  • New motor cycle allowance
  • Extension to post-employment commission entitlements

Contact us for further information. To read the full award changes, REEF will be the best place to find all relevant information regarding all employment changes.

 

EOFY Tip #3 – Review Your Agent Packages

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Real estate businesses are all about people, ultimately the quality of your people is your major point of difference in your market place.

As the end of financial year is the close off of your payroll calendar, it is a good time to look all of your packages.

If you strive to be an employer of choice in your market, how you handle your team’s career paths and remuneration is a very strong determining factor.

It is often daunting to drive these changes, and for many business owners saying nothing and dealing with it on a case by case basis is the rule, but leadership requires direction, and efficiency requires process.

Great businesses don’t fight fires all day, they take advantage of clear communication and mutual agreement between the owners and their staff, because it’s healthy for both parties to know where they stand. What better time than the start of a new financial year.