Annual Wage Review

Fair Work Annual Wage Review 2019-2020

Written by: Institute of Certified Bookkeepers

Get ready for a 1.75% increase to base pay rates

The Fair Work Commission (FWC) has announced a 1.75% increase to minimum wages following its 2020 Annual Wage Review. The new National Minimum Wage (NMW) will be $753.80 per week or $19.84 per hour. The increase applies to base pay rates from the first full pay period starting on or after 1st July 2020. This constitutes an increase of $13.00 per week to the weekly rate or 35 cents per hour to the hourly rate.


The wage increase takes effect in a staged implementation. It applies to the first full pay period after the relevant start date.

Example: For those awards with a 1st July 2020 start date; if the employees are normally paid on the 3rd July for the pay period 29th June to 3rd July, this would be at the current rate. The increase would apply from the pay period commencing on 4th July.

Check all allowances, penalty rates and base rates of pay are increased appropriately in software as required.

Staged Implementation

The 1.75% increase will apply to minimum rates in Modern Awards in 3 stages from the first full pay period after the group date.

Group 1 Awards – from 1st July 2020

· Frontline Heath Care & Social Assistance Workers
· Teachers and Child Care
· Other Essential Services

For a complete list of awards in Group 1 – Group 1

Group 2 Awards – from 1st November 2020

· Construction
· Manufacturing
· A range of other industries

For a complete list of awards in Group 2 – Group 2

Group 3 Awards – from 1st February 2021

· Accommodation and Food Services
· Arts and Recreation Services
· Aviation
· Retail
· Tourism

For a complete list of awards in Group 3 – Group 3

What do I need to do?

The FWC is working on updating their pay tools with the new rates and Group 1 Awards should be ready by 1st July 2020. Ensure your business is ready to pay the increase to employees as at the appropriate date.

Who does the increase apply to?

The change only applies to employees that derive their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.

Most employees are covered by an award. If you’re not sure which award applies to you or your client’s employees, you can use Find my award on the Fair Work website.

Parental Leave Pay

Parental Leave Pay is generally increased in line with the national minimum wage; however, we are waiting on updates on their website to confirm the increase to PPL from 1st July 2020.

If you enjoyed this article and would like to see others, then click on the link below.

Accountability BAS and Bookkeeping Services provide professional bookkeeping and BAS services to businesses in most Australian states.

What our clients say about us…

“I had the pleasure of being introduced to ABBS through Jo Bacon the WA representative. The professional service.  I have received has been so essential in assisting me with my new business, I am so grateful for the expertise, professionalism and excellent customer service I have experienced.” Marion B

“Thanks to Steve Cocks from ABBS we managed to get all the books up to date and in no time, … and that took the weight off my shoulders so I could focus on developing my business and moving forward in a more organized and structured way, keeping on top of things every month which makes life much easier.”  Elisabeth G

“As an ex-bookkeeper, I’m pretty fussy about how I like things done and I’ve found Caran from ABBS to be a pleasure to work with. She’s competent and efficient and now that I have her helping me with the bookkeeping for my business, I wouldn’t be without her.”  Sandy T

    “As a sole director of a regional law firm,  I’m very conscious of the need to have the proper business support, particularly in the areas of bookkeeping and trust accounting. Since I outsourced those components of my business to ABBS, I feel as if these vital components of my business are in expert hands and I can relax knowing that it is all being done properly , efficiently and legally.  Rob’s expertise with running a business including his insight with managing employees, his ready availability for a discussion at any time on any business matter, his advice and support, have been absolutely invaluable to CastleGate Law.  In addition, Janice from ABBS looks after my trust accounting through Leap with equal efficiency and expertise – she and Rob make a great team for any law firm.  Not only do I feel like I’m sharing the considerable burden of running a law firm, but I feel like in Rob I have someone on my side as a business owner, because of his implicit understanding of business matters, his encouragement and support. For all these reasons I cannot recommend ABBS highly enough as additions to any law firm or business partner. ”  Kate R

If you would like a brief chat or schedule an online meeting, then call me on:

07 3040 7222

If you would like to get an instant quote:

To be able to provide you with a relatively accurate quote, we will need you to provide some core information that is used for this purpose only.

We suggest you have the bank statements or closely estimate the number of transactions on all business bank accounts and credit cards for the last three months.

2017 Queensland Bookkeeper of the Year Finalist
Registered BAS Agent
Xero Logo