With the end of one financial year and the start of another there is always a list of things that every business has to go through.  From an employment perspective that list is longer this year than usual with the second wage increase in the last 6-9 months as well as the first superannuation increase in many years.  Before the champagne is cracked to celebrating another year filled with disasters, lockdowns and oh so much change, businesses should ensure that they understand and are ready for the changes that come in from 1 July.  This weeks HR Highlight is a practical Q & A about preparing for the start of the new financial year.

New financial year new rates

The new financial year means that the new Award rates will apply for the three industry Awards (Clerks Private Sector Award 2020 for fuel administrative staff, Road Transport and Distribution Award 2020 for fuel transport staff, Vehicle Repair Service and Retail Award 2020 for fuel retail staff) as outlined here; https://acapmag.com.au/2021/06/national-wage-case-2021-and-its-implications/.  ACAPMA has provided all members with the Quick Reference Guides (see; https://acapmag.com.au/2021/06/acapma-wage-guides-2021-2022-released/) that list out these rates and provide a summary of the key clauses of the Awards.  In addition ACAPMA has received the following common questions;

  • I have console staff who are employed with the Award – does a pay increase apply to my staff?
    All fuel industry staff are covered by the three industry Awards and all three industry Awards have had a pay increase in line with the National Wage Case.  This means if the employee is employed with the Award as their instrument then their rates will need to increase.
  • My staff are covered by an enterprise agreement registered with the Fair Work Commission – does a pay increase apply to my staff?
    Yes in a way…
    Because enterprise agreements and individual flexibility agreements are underpinned by the Awards, the increase in the Award rates will also mean that rates in any enterprise agreement and individual flexibility agreements will need to be reviewed to ensure that they are keeping pace with the Award.
  • My staff are already paid above the Award rate – do I have to increaser their pay?
    it depends…
    If the employee is already receiving an amount that is higher than the amount that the Award says the employee needs to receive from 1/7/2021 then the employees wages do not need to go up
    If the employee is receiving an amount that is in between the current (2020/2021) Award rate and the future (2021/2022) Award rate, then the employees wages need to go up to the level of at least the Award 2021/2022 rate.

When do new rates apply?

The new wage rates apply to the first full pay period on or after 1 July 2021…but what does that mean?

It means that the new rates apply only with all of the days in the pay period all fall into the new financial year.  So if there are some of the days in the pay period that are in June and some that are in July then the old rates will apply for the whole of that pay period…but once all of the days in the pay period are in July then the new rates will apply.

So if the business pays fortnightly for the pay period from Wednesday to Tuesday and the last pay period of the financial year commences on Wednesday 30/6/2021 and concludes Tuesday 13/7/2021 then as the pay period includes some days in June and some days in July then the whole pay period will be at the old rates, and the next pay period (in this example the once commencing Wednesday 14/7/2021) will be at the new rates.

New financial year new Superannuation situation

For the first time in a long time superannuation is changing.  In addition to the changes to the application and payment of superannuation for lower income earners announced in the budget, for the first time in years the superannuation guarantee amount is increasing from 9.5% to 10%.

For more information on the changes see; https://acapmag.com.au/2021/06/superannuation-changes/

ACAPMA has been asked;  when does the 10% superannuation guarantee apply?

Like the wage increase the superannuation guarantee increase applies from the first full pay period on or after 1 July 2021 (see above for examples).

Here to Help

ACAPMA members are reminded that the ACAPMA Employment Professionals are available to assist with employment, safety and training compliance. For more information email employment@acapma.com.au

HR Highlights are things to consider, implement and watch out for in your business. They are provided as general advice and you should seek further advice on your situation by emailing employment@acapma.com.au its free for members. ACAPMA membership is affordable at only $810 per year for a single site and valuable with sites gaining HR and IR advice support and representation as well as a raft of other benefits and discounts.

Elisha Radwanowski BCom(HRM & IR)
Executive Manager for Employment and Training