Australia: Important changes to minimum wages and the high income threshold take effect in Australia from 1 July 2018

MINIMUM WAGES

From 1 July 2018, Australia’s national minimum wage for adult employees increased by 3.5% from $694.90 per 38-hour week (or $18.29 per hour) to $719.20 per 38 hour week (or $18.93 per hour).

Similarly, minimum rates under Modern Awards also increased by 3.5% for the first full pay period on or after 1 July 2018.

For junior employees who are Modern Award-free and Enterprise Agreement-free, the percentage scale set out in the Miscellaneous Award 2010 is applied to the national minimum wage to determine their applicable minimum rate of pay.

The minimum casual loading for Modern Award-free and Enterprise Agreement-free employees remains at 25%.

While not all wages will rise as a result of the national minimum wage increase, employers should nonetheless review wage rates to avoid any risk of accidental underpayment.

The National Minimum Wage Order 2018 can be viewed on the Fair Work Commission’s website via this LINK

Please contact Harmers Workplace Lawyers if you would like further information or assistance with calculating revised rates.