As we know every year, we face the challenge of navigating the changes to the modern awards through the increases to the National Minimum wage in Australia.
Flashback to September 2019, the Fair Work Commission announced that there would be a gradual release of changes to all, at the time, – 122 awards however with the merging of the concrete products and quarrying awards therefore reducing that number to 121 awards across the national framework. This tranche approach with changes that we usually see in June (Primarily Pay items and Allowance items) had of course commenced rolling out in February and then as we know it- COVID-19 hit us all so the proposed bulk release of tranche #2 the first week of April has dripped through late April and into May.
The coronavirus has certainly had a societal change to us all and a massive impact, and our friends at Fair Work have clearly been called upon to reconsider its approach this year, and as announced on Friday the 19th June, a further tranche approach will be applied for updating of awards based on the minimum wage increase of 1.75% to be staged, with key dates as follows;
July 1 (21 awards)
November 1 (74 awards)
February 1, 2021 (27 awards)
So, what does this mean? Have we all dodged a bullet when the usual scenario is waiting anxiously for these changes every June and what follows is a mad rush to update all our systems and of course our clients? The answer is very much in the detail and it does not for one second allow us to relax!
As explained in the first paragraph and in consideration of the September announcement there are still 49 awards to be released with changes to definitions, rules and pay and allowance items in which 18 will be changed before June 30 along with the initial 21 awards affected by the minimum wage increase.
So, our advice is as always to be mindful of these pending changes to avoid underpayment, payroll errors and invoicing errors.
How can we help?
ratescalc are award and industrial agreement specialists- We know the industrial landscape and pride ourselves on been an authority in this space
The ratescalc platform always remains updated with accurate data to support our clients to help you navigate the constantly changing landscape
The ratescalc system manages all of this for you through auto-notifications so you can get on with business