News
Changes to Minimum Wage and Award rates
In June 2020, the Fair Work Commission announced an increase of 1.75% to minimum wages, with the roll-out of each Award staged across three groups.
This means the minimum wage in Australia is now $19.84 per hour ($753.80 for a 38-hour week).
In order to remain compliant with the wage increase, employers should complete a wage review to ensure they are paying each employee in line with the new minimum rates for their relevant Modern Award. The increases also apply to businesses on the JobKeeper subsidy.
Group One
Awards increased from 1 July 2020 and included:
- Front-line Heath Care & Social Assistance Workers
- Teachers and Child Care
- Other Essential Services
Group Two
Awards increased from 1 November 2020 and included:
- Construction
- Manufacturing and
- A range of other industries
Group Three
This group has been delayed until 1 February 2021. The Award groups in this category include:
- Accommodation and Food Services
- Arts and Recreation Services
- Aviation
- Retail
- Tourism
The wage changes must be applied to the first full pay period on or after the new wage comes into effect. At the very least, employers must ensure their full-time employees are paid at least the National Minimum Wage.
Employers who fail to pay wages in accordance with the National Minimum Wage, or the requirements of the relevant Modern Award, risk breaching the Fair Work Act 2009. This means they could be subject to hefty fines and a requirement to back-pay staff if it has been found they have failed to correctly pay staff.
For a full list of the Awards included in Groups One, Two and Three, see the Fairwork Commission website
Contact your local TaxAssist Accountant if you need help and advice with any of the above.
Date published 21 Jan 2021 | Last updated 21 Jan 2021
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our multiple locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.