Now that you have finalised your End of Financial Year for 2020, the new financial year begins.
The Fair Work Commission has just announced a 1.75% increase to minimum wages for all Award wages under the national workplace relations system, for the coming 2021 financial year.
The new minimum wage will be $753.80 per week or $19.84 per hour. It will apply from the first full pay period starting on or after 1 July 2020 for all employees not covered by an Award or agreement under the national workplace relations system.
In Western Australia, companies and incorporated trusts and partnerships are covered by the national workplace relations system. However, sole-traders and unincorporated trusts and partnerships are covered by the WA state system, which is different to the other states of Australia. The WA Industrial Relations Commission is due to hand down its decision on changes to the State’s minimum wages – which affects about 300,000 employees – by the end of the month.
Unlike previous financial years, the increase will apply in 3 stages for industry groups based on the impact of COVID – 19, summarised as follows:
Group 1: from the first full pay period starting on or after 1 July 2020.
- Aboriginal Community Controlled Health Services Award
- Aged Care Award
- Ambulance and Patient Transport Industry Award
- Banking, Finance and Insurance Award
- Cemetery Industry Award
- Children’s Services Award
- Cleaning Services Award
- Corrections and Detention (Private Sector) Award
- Educational Services (Schools) General Staff Award
- Educational Services (Teachers) Award
- Electrical Power Industry Award
- Fire Fighting Industry Award
- Funeral Industry Award
- Gas Industry Award
- Health Professionals and Support Services Award
- Medical Practitioners Award
- Nurses Award
- Pharmacy Industry Award
- Social, Community, Home Care and Disability Services Industry Award
- State Government Agencies Award
- Water Industry Award
Group 2: from the first full pay period starting on or after 1 November 2020.
- Aluminium Industry Award
- Animal Care and Veterinary Services Award
- Aquaculture Industry Award
- Architects Award
- Asphalt Industry Award
- Black Coal Mining Industry Award
- Book Industry Award
- Broadcasting, Recorded Entertainment and Cinemas Award
- Building and Construction General On-site Award
- Business Equipment Award
- Car Parking Award
- Cement, Lime and Quarrying Award
- Clerks—Private Sector Award
- Coal Export Terminals Award
- Concrete Products Award
- Contract Call Centres Award
- Cotton Ginning Award
- Dredging Industry Award
- Educational Services (Post-Secondary Education) Award
- Electrical, Electronic and Communications Contracting Award
- Food, Beverage and Tobacco Manufacturing Award
- Gardening and Landscaping Services Award
- Graphic Arts, Printing and Publishing Award
- Higher Education Industry-Academic Staff-Award
- Higher Education Industry-General Staff-Award
- Horticulture Award
- Hydrocarbons Field Geologists Award
- Hydrocarbons Industry (Upstream) Award
- Joinery and Building Trades Award
- Journalists Published Media Award
- Labour Market Assistance Industry Award
- Legal Services Award
- Local Government Industry Award
- Manufacturing and Associated Industries and Occupations Award
- Marine Towage Award
- Maritime Offshore Oil and Gas Award
- Market and Social Research Award
- Meat Industry Award
- Mining Industry Award
- Miscellaneous Award
- Mobile Crane Hiring Award
- Oil Refining and Manufacturing Award
- Passenger Vehicle Transportation Award
- Pastoral Award
- Pest Control Industry Award
- Pharmaceutical Industry Award
- Plumbing and Fire Sprinklers Award
- Port Authorities Award
- Ports, Harbours and Enclosed Water Vessels Award
- Poultry Processing Award
- Premixed Concrete Award
- Professional Diving Industry (Industrial) Award
- Professional Employees Award
- Rail Industry Award
- Real Estate Industry Award
- Road Transport (Long Distance Operations) Award
- Road Transport and Distribution Award
- Salt Industry Award
- Seafood Processing Award
- Seagoing Industry Award
- Security Services Award
- Silviculture Award
- Stevedoring Industry Award
- Storage Services and Wholesale Award
- Sugar Industry Award
- Supported Employment Services Award
- Surveying Award
- Telecommunications Services Award
- Textile, Clothing, Footwear and Associated Industries Award
- Timber Industry Award
- Transport (Cash in Transit) Award
- Waste Management Award
- Wool Storage, Sampling and Testing Award
Group 3: from the first full pay period starting on or after 1 February 2021.
- Air Pilots Award
- Aircraft Cabin Crew Award
- Airline Operations-Ground Staff Award
- Airport Employees Award
- Alpine Resorts Award
- Amusement, Events and Recreation Award
- Commercial Sales Award
- Dry Cleaning and Laundry Industry Award
- Fast Food Industry Award
- Fitness Industry Award
- General Retail Industry Award
- Hair and Beauty Industry Award
- Horse and Greyhound Training Award
- Hospitality Industry (General) Award
- Live Performance Award
- Mannequins and Models Award
- Marine Tourism and Charter Vessels Award
- Nursery Award
- Professional Diving Industry (Recreational) Award
- Racing Clubs Events Award
- Racing Industry Ground Maintenance Award
- Registered and Licensed Clubs Award
- Restaurant Industry Award
- Sporting Organisations Award
- Travelling Shows Award
- Vehicle Repair, Services and Retail Award
- Wine Industry Award
Currently, the Fair Work Commission hasn’t released the new Pay Guides for the 2020 financial year for those Awards in Stage 1. We’re watching for them being released and will inform our clients in due course.
AustAsia Group can help you with:
- Cashflow planning and finance assistance;
- Reviewing employment contracts to ensure compliance with various governing bodies;
- Assistance setting up/migrating to cloud based accounting software; and
- Reviewing your current payroll system to ensure compliance (Single Touch Payroll, SuperStream, payroll calculation and PAYG Withholding reporting).
Effect of the Minimum Wage Increase on COVID 19 Relief Programs
- JobKeeper Payment
If an employee is being paid under the JobKeeper Payment scheme, the minimum wage increase will affect the JobKeeper Payment top-up amount per payroll cycle. - Payroll Tax
The increase will affect the Payroll Tax reporting for your business depending on which state of Australia you’re operating in, as each state has its own payroll tax laws. AustAsia Group can review the effect of the new Minimum Wage on your business’ Payroll Tax reporting as well as any relief or updates to the relevant state payroll tax.For example, the NSW payroll tax threshold will increase from $900,000 to $1 million on 1 July 2020 and in WA it will increase from $950,000 to $1 million on 1 January 2021.
Still have questions? We are here to help.
Please contact us at consulting@austasiagroup.com if you have any Minimum Wages related or general queries that we can assist you with. We’re here to help.
