Fair Work Changes from 1 July 2021

The new financial year brings changes to employment. The impact of Fair Work changes and changes to employment arrangements will vary depending on your business, your industry or, even, your location. Below you will see some of the changes we have identified:

1. Minimum Wage and Award Wages to rise

Effective from 1 July 2021, the Minimum Wage and the majority of Award rates will rise 2.5%.  This equates to the National Minimum Wage for an adult rising to $20.33 per hour – an increase of $18.80 per week.

While most of the Award changes are effective from 1 July 2021, certain industries have had their increases delayed due to the effects of COVID-19.  They are:

  • Those businesses covered by the General Retail Award 2020 – implementation from 1 September 2021.
  • Those businesses covered by Awards covering Aviation, Fitness and Tourism – implementation from 1 November 2021.

Effected Modern Awards have now been updated to reflect the increases.  You can access your Award by clicking on the link below:

Fair Work Ombudsman – List of Modern Awards

2. Superannuation Changes

The headline change from 1 July 2021 for employers is the increase in the Superannuation Guarantee Payment from 9.5% to 10%.

You can find out more about these changes at the ATO Website – https://www.ato.gov.au/Business/Business-bulletins-newsroom/Employer-information/Super-Guarantee-rate-rising-1-July/

3. High Income Threshold to rise

The High Income Threshold will rise to $158,500. Under the Fair Work Act, the High Income Threshold is the amount of money an employer can pay an employee where a relevant award stops applying to them providing they are given a guarantee of annual earnings. It can also act as a limit to an employees eligibility to make an unfair dismissal claim. The high income threshold changes each year.

Each year as part of the National Wage Case, the Fair Work Commission reviews and updates the expenses and allowances payable under Modern Awards. This year is no exception!

We recommend reviewing your Award to ensure that the allowance you are paying from 1 July 2021 are correct.

Check your award at https://www.fairwork.gov.au/awards-and-agreements/awards/list-of-awards

5. Changes to Health Professionals Award

The Fair Work Commission has made changes to the Health Professionals and Support Services Award to broaden it coverage across Health Professional occupations.

The immediate effect of these changes is that some pay conditions for those affected may change, including some payments due to employees.

We recommend that if you employee Health Professionals, you check the Award and double check award coverage which may have changed because of the changes.

You can find a copy of the award at MA000027: Health Professionals and Support Services Award 2020 (fwo.gov.au)

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