On 3 June 2010, Fair Work Australia’s Minimum Wage Panel released its decision on the first Annual Wage Review conducted under the Fair Work industrial relations framework. This decision is the first adjustment to wages in Australia’s national industrial relations system since October 2008.

The panel’s decision increases all modern award pay rates by a flat $26 per week, and the full time national minimum wage by almost five percent. It also increases the default casual loading for award and agreement free employees from 20 percent to 21 percent, with the result that the minimum hourly rate for this group increases by almost six percent.

Subject to applicable transitional arrangements, which are discussed below, the changes take effect in the first full pay period that starts on or after 1 July 2010. Employers need to now determine how, if at all, their industrial arrangements are affected by the decision, so they can make sure that they comply with the minimum safety net requirements after 1 July. Failure to do so may result in wage underpayments and exposure to substantial civil penalties.

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