Notch Above Brisbane Bookkeeping

Australian modern awards changes

Get ready: Changes to Australian modern awards coming in March

If you’re an Australian employer, you may be aware that changes are coming to modern awards that will require added compliance.

The Fair Work Commission announced its final decision last year amid media stories of employers underpaying workers. The new award requirements took effect 1 March 2020.

Many businesses will need to review employment contracts and update their HR and payroll practices in the coming weeks. If you’re an employer who uses Xero Payroll, you’ll want to ensure you’re compliant. These are just a few of the tasks that will apply to an enlarged group of 22 modern awards:

  • Annual calculations of what the employee would have been paid under the award compared with the annualised wage actually paid (with reconciliations and back pay of any shortfalls)
  • Recording start and finish times, as well as any unpaid breaks taken by each employee subject to an annualised wage arrangement (in order to perform the calculations and reconciliations as listed above)
  • Records must be signed by employees or acknowledged as correct in writing (including electronic methods) with each pay period/roster cycle. 

Some employers will also need to advise employees of the formula that was used to determine their annual salary and any excess hours of work not covered by their annual salary.

Tools to help

Third-party apps

Many Xero subscribers already use third-party apps that integrate with Xero Payroll. These apps can handle rostering and timesheets. You’ll want to investigate which ones might be a good fit for your situation come 1 March.

Fair Work resources

There’s an app and timesheet template available from Fair Work. While the Fair Work app is a standalone resource, you can export information and enter it manually into Xero. And the timesheet template may be useful for those disinclined to record details via electronic methods.

Expert advice

If you have questions about how to interpret the awards and stay compliant, consult an expert who can steer you through the rules as they apply to you. 

Specialising in Xero bookkeeping, Notch Above are Brisbane bookkeepers offering Xero setup, as well as training and ongoing support. Call us on 07 3355 6427.
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Notch Above

We love to put energy and passion back into life by taking away the bookwork drag. With the help of smart systemised bookkeeping systems life can become easier. Notch Above Bookkeeping was founded in 2006 after Jac Gallagher saw the need for small businesses to have access to accurately prepared and up to date financials, enabling owners to make informed financial decisions on their business in a timely manner. Notch Above is a Xero Platinum Partner based in Brisbane QLD servicing business owners and accounting businesses.

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