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Annual Wage Review – Final Stage

Earlier this year, we covered the 2.5% increase to the national minimum wage and all award wages (see the article here). The changes have been rolled out in three stages, and we’re already at the third! The increases announced as a result of the Annual Wage Review first came into effect on 1 July, with an increase to the national minimum wage and most award rates. 1 September saw an increase to the Retail Award, and in this article, we’ll look at the increases that applied as of 1 November.

Annual Wage Review Stage 3 – Which Awards Are Affected?

There were 21 awards that saw an increase to their minimum pay rate as of 1 November 2021, and they are as follows:

• Pilots Award
• Cabin Crew Award
• Airline Ground Staff Award
• Airport Award
• Alpine Resorts Award
• Amusement Award
• Dry Cleaning and Laundry Award
• Fitness Award
• Hair and Beauty Award
• Hospitality Award
• Live Performance Award
• Models Award
• Marine Tourism and Charter Vessels Award
• Nursery Award
• Racing Clubs Events Award
• Racing Ground Maintenance Award
• Registered Clubs Award
• Restaurant Award
• Sporting Organisations Award
• Travelling Shows Award
• Wine Award

Other awards, plus the national minimum wage, increased in the stages prior to 1 November – meaning all employees across Australia earning minimum wage are now entitled to a pay rise (if they haven’t received one already). These changes to do not impact employees who are currently earning more than the new minimum pay rate applicable to their role. You can find a list of all awards and their relevant pay guide on the FairWork website here.

Note that 1 November also heralded the introduction of “stapled” superannuation funds (see our article on that article here), which should now be incorporated into the induction processes in every business, along with ensuring these new minimum wage standards are being met.

What do Businesses Need to do?

If you operate a business employing staff on award wages, it is critical that you review your payroll systems and information and ensure you are compliant with the new minimum rates. Using the pay guides via the link above, or FairWork’s pay calculators, you can determine the awards that apply to your staff, and the applicable pay rate. This should have already happened in advance of the changes coming into effect on 1 July, 1 September and/or 1 November (depending on the award) but if you haven’t done so yet, review your payroll as soon as possible. If you find that you may have underpaid wages or superannuation payments, this needs to be rectified as soon as possible.

How can MP+ Help with the Annual Wage Review changes?

We know that keeping up with all of the changes in employment law and pay rates isn’t easy, especially when you’re trying to run a business. At MP+, our CFO2GO team can look after all of your business’ bookkeeping, including payroll, and make sure you’ll never be caught out when things change in the future. To see how we can help your business thrive, and not just survive, call us on 08 9301 2200 (Joondalup or 08 9361 3300 (Victoria Park); or contact us via our website.

written by:

Claire Ginbey

Heading up our CFO2GO team, Claire's skills as a SME Business Specialist and cloud accounting specialist have developed in line with advancements in technology and best practice; allowing her to maintain the highest service standards for clients.

Claire's passion for growing small businesses and helping them achieve sustained success is what motivates her to continuously develop her skills and knowledge. Her clients appreciate her considered and dedicated approach to working with them, and her personal oversight across their operations and financial performance.