2026 AWARD WAGE REVIEW

The decision was an increase of at least 4.75% to workers paid at Award rates, with a further increase to the lowest level of many
Awards (entry level employment), effective from the first full pay period after 1st July 2026.

HERE IS OUR UNDERSTANDING OF THE DECISION:

We expect that the updated Awards containing the increased wage rates will become available over the next two weeks, but until
then, our understanding is as follows:

NEW NATIONAL MINIMUM WAGE:

From the first full pay period after 1st July 2026, the National Minimum Wage has been increased by 4.75% to the following:

Permanent Full-time Employees: $1,004.90 per week;
Permanent Part-time Employees: $26.44 per hour; and
Casual Employees: $33.05 per hour.

The very lowest level of experienced employees under some Awards will receive increases that are in excess of the 4.75%, to take
them up to the increased minimum wage.

Some Awards may still include a lower paid level for inexperienced employees for a maximum period of six (6) months, but this will
not apply to all Awards.

All Award level wage rates above the lowest level will increase by 4.75%.

WHAT DOES THIS MEAN FOR YOU?

Obviously, during this tough period for business owners and operators, any increase in wages is likely to have a significant impact
on your business.

Given that the increases are a little more complex than usual (i.e., higher percentage increases for the lowest Award levels), It is our
opinion that, if possible, it may be best to wait until the Awards have been updated before processing the increases.

You will be able to find your relevant Award by cutting and pasting the following link in your web browser:

https://www.fwc.gov.au/search/awards/modern-awards-list
The following points are important to be aware of when processing the Award increases:

1. All employees who are covered by an Award and who are being paid at the Award wage rate for their job level are entitled
to the new wage rates from the first full pay period after 1st July 2026.

2. Employees who are currently paid slightly above the relevant Award rate, but lower than the increased Award rate for their
job levels are, as a minimum, entitled to receive an increase that takes them up to the increased Award rate.

3. Any Employees who are currently being paid at rates that are higher than the updated Award rates for their job levels may
not be entitled to an increase with the amount of the Award increase being absorbed into their “above-Award”
remuneration.

4. It is important to review and update “Individual Flexibility Arrangements” applied under clause 5 or 7 of each Award to
ensure that the numbers of overtime hours, etc. and other entitlements that are covered by the IFA are accurate after 1st
July 2026.

The critically important factor relating to the wage increases is that none of your employees are paid wages that are lower than the
relevant Award rates for their job levels.

2026 AWARD WAGE REVIEW (cont.)

We recommend that your decisions in relation to passing the full increases to employees who are paid at rates in excess of the
increased Award rates, or whether you elect to have some or all of the increase absorbed into current above Award remuneration
are considered carefully. Obviously, your decisions have the potential to impact employee work satisfaction, workplace morale,
and employee turnover.
If you elect not to pass on the full increase to employees who fall under points 2, 3 and 4, above, you communicate your decision
to the people impacted and explain your reasons why.
If you need our advice or if we can help in any way, please let us know.

WORK HEALTH AND SAFETY

HEALTH AND SAFETY REPRESENTATIVES
A minor change to business obligations in relation to Work Health and Safety was recently brought to our attention.
Under the “Work Health and Safety Act 2011”, there is no requirement for businesses to have “Health and Safety Representatives”
unless a worker has requested that one or more be appointed.
The change to the business obligation is that, while there is still no obligation for businesses to have appointed Health and Safety
Representatives, there is an annual requirement for businesses to advise workers, in writing, that should they wish for a Health
and Safety Representative to be appointed, they have the right to make the request, in writing, and steps will be put in place to
nominate one or more Health and Safety Representatives.
To advise workers of this right, you may use email, text, messages on pay slips, or put a notice on a notice board in an area where
all workers are likely to see it.
Should you receive a request that one or more Health and Safety Representatives be appointed, as has always been the case, it is
compulsory for you to follow a process of calling for nominations and conducting a ballot to select the worker or workers to be
appointed. If this occurs, the Health and Safety Representative/s is/are entitled to attend formal training for the role, at the
employer’s expense.
If you have any questions in relation to the requirement, please give either Rachel or me a call.

POLICIES, PROCEDURES and ASSOCIATED DOCUMENTS:

With legislated changes and updates to requirements and obligations of employers occurring regularly, it has never been more
important to ensure that Policies and Procedures are compliant and up-to-date, and that your employees are fully aware of what is
required of them.
Generally, on-going legislative updates and changes, together with changes to business requirements, result in the need to review
and update Policies and Procedures, Employee Handbooks, Employment Contract Templates, Work Health and Safety Documents
and other associated items at least every two (2) to three (3) years.
Compliant and up-to-date documents, together with on-going communication with employees, become extremely useful tools in
the event of a Fair Work matter or a Work Health and Safety incident.

ON A LIGHTER NOTE (courtesy of Reader’s Digest)