The Fair Work Commission has announced two substantial increases to minimum wages

National Minimum Wage Increase

The National Minimum Wage will increase by 5.2%, amounting to $40 a week.

The new minimum wage will be $812.60 per week or $21.38 per hour.

Award minimum wage increase

The increase to award minimum wages is 4.6%. This is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for full-time employees.

This means the minimum award wages:

Above $869.60 per week, will get a 4.6% increase
Below $869.60 per week, will get a $40 increase

When do these changes come into effect?

National Minimum Wage

The new National Minimum Wage will apply from the first full pay period on or after 1 July 2022.

Awards

For most award-covered employees, minimum wages will increase from the first full pay period on or after 1 July 2022.

However, for employees covered under the awards listed below the increase will be effective from 1 October 2022:

Aviation

Aircraft Cabin Crew Award
Airline Operations – Ground Staff Award
Air Pilots Award
Airport Employees Award

Air Services Australia Enterprise Award 2016

Hospitality

Hospitality Industry (General) Award
Registered and Licensed Clubs Award
Restaurant Industry Award

Tourism

Marine Tourism and Charter Vessels Award
Alpine Resorts Award

Which employees will receive this increase? 

Employees whose minimum wage entitlements are set by:   

The national minimum wage   
A modern award    
A registered agreement (in some circumstances)

Non-award covered employees

It is important to note that if you have non-award covered employees on a salary which is above the national minimum wage, you are not obliged to increase their salary. However, with the current job market being so competitive and a shortage of potential employees available in the Australian market, it may be worth undertaking salary benchmarking and considering an increase when undertaking your next salary review process.   

Next steps

Check whether your employees are covered by the national minimum wage, or a modern award.

Should a modern award apply to your employees, ensure you have correctly classified employees under the relevant award, and confirm the minimum rates of pay that will apply.

Review the current rates of pay for your employees and, if required, adjust their pay rates from their first full pay period starting on or after the appropriate date as it applies to your modern award.

Changes to Superannuation from 1 July 2022

It is important to also note that the increase in the super guarantee rate from 10% to 10.5% will be effective from 1 July 2022. Read more about the changes to superannuation here.

Contact us

Our experienced HR Consultants at Allan Hall HR are available to answer your queries regarding the wage rise and assist you with salary benchmarking, clarification of awards or any other employee-related matters. Please get in touch with us today on 1300 675 393 or at [email protected] .

Major new COVID-19 support package to help NSW businesses

The NSW Government has announced a major new grants package and Dine & Discover changes to help small businesses and individuals across NSW impacted by the current COVID-19 restrictions.

We will release further updates on eligibility requirements as information is released by NSW Treasury.

The package includes grants of between $5,000 and $10,000 for small businesses, payroll tax deferrals for all employers, an extension of the Dine & Discover program to 31 August 2021 and the ability for people to use Dine & Discover vouchers for takeaway delivered directly to their home by the venue itself.

The centrepiece of the package is the small business support grants which will help businesses by alleviating cashflow constraints while trading is restricted. This can be used for business expenses such as rent, utilities and wages, for which no other government support is available.

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions:

$10,000 for a 70% decline
$7,000 for a 50% decline, and
$5,000 for a 30% decline.

Unfortunately businesses continue to incur costs such as rent, power and lost produce whilst the current restrictions are in place. The new grants will be available across NSW and available to sole traders and non-profit organisations, with expanded criteria to assist most hospitality and tourism operators impacted by COVID-19 restrictions during the school holiday period.

Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June 2021.

Business grants will be divided into two streams

1. Small Business COVID-19 Support Grant

Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government 2020-21 payroll tax threshold of $1,200,000 as at 1 July 2020. These businesses must have fewer than 20 full time equivalent employees and an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.

2. Hospitality and Tourism COVID-19 Support Grant

Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million as at 1 July 2020. These businesses must have ABNs registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.

NB: Full criteria for both streams will be available in coming days on the Service NSW website.

Other key elements of the announced package

Dine & Discover vouchers will be able to be used for takeaway from eligible and registered Dine businesses during the restriction period, but food must be delivered direct to the home by the restaurant or café and not picked up. Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms.
A further one-month extension of Dine & Discover vouchers until 31 August 2021 to allow more time to use them.
Optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax, with the Chief Commissioner of State Revenue able to provide for appropriate repayment arrangements on a case by case basis.

More information on small business support grants including Dine & Discover program changes will be available on the Service NSW website soon.

Applicants will require an accountant’s prepared declaration as part of the grant submission process. Allan Hall will be able to provide assistance to our clients as we have done with previous NSW grant programs.

To prepare a grant application or check proof of identity and auditing requirements, call Allan Hall’s team on the Northern Beaches on 02 9981 2300.

Tag: tourism

National Minimum Wage Rise