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1 July: Minimum wage up, penalty rates down, STP starting

Published on Jun 7, 2019

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It’s ‘all happening’ on 1 July 2019! First there’s the much touted rise to the minimum pay rate, plus further changes to some penalty rates, and the beginning of the mandatory Single Touch Payroll (STP) system for small businesses who employ fewer than 20 staff.

pay rise of $21.60 will apply to the minimum wage

Minimum wage increase

The Fair Work Commission has announced a three percent increase to minimum wage rates. The increase will begin from the first full pay period on or after 1 July 2019.

 

This means that the national minimum wage will increase from $719.20 per week, or $18.93 an hour, to $740.80 per week, or $19.49 an hour. The increase applies to the base pay rates. The decision will affect 2.2 million workers who are on the lowest pay rates.

 

The increase was more than the two percent business groups wanted. But it fell short of the $43 per week the Australian Council of Trade Unions lobbied for.

 

Who gets the increase?

The three percent increase applies to employees that get their pay rates from:

  • the national minimum wage
  • a modern award.

The national minimum wage applies to employees who aren’t covered by an award or agreement.

 

Go to find my award if you’re not sure which award applies to your staff.

 

If your workers are covered by a registered agreement, you should check it to see whether this increase is applicable.

 

The increase won’t affect employees who already get paid more than the new minimum wage.

 

Changes to some penalty rates

There will be further changes to certain penalty rates in some hospitality and retail awards from 1 July 2019, following a Commission decision in 2017.

 

Visit the Fair Work Ombudsman’s penalty rates page for more information about what the changes are, who they affect and how they’re being implemented.

 

STP Reminder

July 1 is also the start date for the single touch payroll (STP) system for small businesses who employ fewer than 20 staff. Go here for more information on STP.

 

For more information on the mandatory STP, revisit our recent article on the issue.

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