Start of the Financial Year: New Award Rates Are Here – Are You Compliant?

What’s Changed?

Each year, the Fair Work Commission reviews and adjusts minimum wage rates under Modern Awards. From 1 July 2025, these updates came into effect, impacting base rates, penalty rates, and allowances across multiple sectors.

Whether you’re managing staff under the Social, Community, Home Care and Disability Services Industry Award, the Clerks Award, the Hospitality Award—or any other—it’s essential to review the specific updates relevant to your business.

What You Need to Do

1. Review Award Coverage and Classification
Double-check that every employee is classified correctly. Misclassifying roles (even unintentionally) can lead to underpayments and compliance risk.

2. Update Pay Rates
Ensure your payroll system reflects the new minimum hourly rates, overtime, penalties, and allowances from 1 July. This applies to casual, part-time, and full-time employees.

3. Communicate with Staff
Transparency builds trust. Let employees know that wage rates have been reviewed and updated in line with Fair Work changes.

4. Adjust Rosters (if needed)
Changes in penalty rates might affect the cost of weekend or evening work. Now’s a good time to review rostering to balance operational needs with compliance.

5. Conduct an Internal Audit
If you haven’t done a payroll or classification audit recently, now is the time. It’s far better to self-identify and correct errors early.