Correctly classifying employees ensures your small business avoids hefty penalties.
This comprehensive guide breaks down payroll awards, simplifying compliance so you save strategic focus for delighting customers, not just complying with legal obligations.
Payroll Awards 101
Payroll awards outline minimum pay rates, allowances and working conditions across occupations - stipulated by Australia's Fair Work Commission based on regular economic and social assessments.
Major industries with tailored awards include:
Rates evolve over time accounting for inflationary impacts so employees don’t carry the full brunt of rising living costs alone.
Fair Work’s free Pay Calculator suggests likely categories derived from job descriptions and duties to remove guesswork.
Remember the National Minimum Wage
According to the Fair Work Ombudsman, as of 1 July 2023 it mandates at least:
🍽️ $23.23 per hour
📆 $882.80 per standard 38 hour week
This minimum liveable income baseline for all Aussie workers proves especially crucial for lower skilled roles that are vulnerable to underpayment.
Payroll Compliance Consequences Catch Up Fast
Skirting award and minimum wage obligations risks swift penalties jeopardising your business, and includes:
❌ Lengthy workplace investigations
❌ Back pay orders compensating staff
❌ Steep fines up to $13K+ per underpayment violation
❌ Permanent reputational damage
❌ Further lawsuits from wronged employees
Pleas of ignorance won’t excuse breaches, so it is important to stay vigilant.