The Commission's October 2006 Minimum Wage Decision has three main elements:
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an increase of $0.72 to the standard Federal Minimum Wage (to $13.47 an hour);
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an increase of $0.72 to basic periodic rates of pay in all Australian Pay and Classification Scales (Pay Scales) up to $18.42 per hour (i.e. up to around $700 per week based on a standard 38 hour week); and
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an increase of $0.58 to basic periodic rates of pay in all Pay Scales above $18.42 per hour (i.e. above around $700 per week based on a standard 38 hour week).
The increases flow on to junior employees, employees to whom training arrangements apply, employees with disabilities and basic piece rates of pay. The decision took effect from 1 December 2006
Clarification of Section B – Australian Industrial Relations Commission’s 2005 Safety Net Review decision – of the Australian Fair Pay Commission’s Wage-Setting Decision No 1. 2006
Section B.2 of the Australian Fair Pay Commission Wage-Setting Decision No. 1/2006 is intended to:
Australian Industrial Relations Commission (AIRC) 2005 Safety Net Review decision
The Commission, as part of the first exercise of its wage-setting powers, will adjust wage rate provisions within a preserved Pay Scale derived from pre-reform wage instruments, that were not adjusted for the AIRC’s 2005 Safety Net Review decision where:
- the wage rates were adjusted in accordance with the AIRC’s 2004 Safety Net Review decision (whether by the AIRC or by a state industrial authority); or
- the wage rates were not adjusted in accordance with the AIRC’s 2004 Safety Net Review decision (whether by the AIRC or by a state industrial authority) but received a safety net adjustment during the 12 months to 27 March 2006; or
- the instrument took effect after the AIRC’s 2004 Safety Net Review decision.
These pre-reform wage instruments will be increased by $17 per week expressed as an hourly rate.
To provide certainty that Section B.2 operates as intended, this clarification specifies that 2005 SNA increases are not intended to be applied to Pay Scales derived from pre-reform State wage instruments, as a result of the application of B.2, where they either:
- were previously adjusted for the 2005 SNR increase but the instrument did not specifically state that this was the reason for adjustment; or
- were otherwise adjusted on the understanding that the parties could not then apply for the 2005 SNR in addition to the other adjustment.