Fair Work Commission (FWC) Abolishes Junior Rates for 18 years+ in 3 Awards

On 6 June 2024, the Shop, Distributive and Allied Employees Association (SDA) applied to change junior rates in 3 awards.

A Fair Work Commission (FWC) Full Bench today has issued its decision to increase rates of pay for junior employees aged 18 years+ in the following 3 awards:

• General Retail Industry Award 2020
• Fast Food Industry Award 2020
• Pharmacy Industry Award 2020

The FWC accepted that the discounted rates in the retail, fast food and pharmacy awards for workers aged 18, 19 and 20 should be removed, for work value reasons and to comply with the Fair Work Act's modern award and minimum wages objectives.

Next steps

The Full Bench will hear from the parties further on the timing and transitional arrangements. Their provisional view is that the changes will be phased in over time starting from 1 December 2026, with the final changes to happen from 1 July 2029. Refer to table below. We will keep you updated.

Court Orders Woolworths to Pay Big Fine to Meat Union

A court has fined Woolworths $233,250 for denying 3 part-time employees’ standard rosters, guaranteed hours and overtime pay, citing a lack of evidence ‘at the corporate level’ and awarding the full sum to the Australasian Meat Industry Employees Union to encourage its enforcement work.

KFC to Pay $29 Million over Rest Breaks

KFC has settled a class action over rest breaks for tens of millions of dollars in a deal that could set the standard for even bigger litigation facing fast food giant McDonald’s.

KFC and more than 80 franchisees have agreed to pay $28.8 million to thousands of current and former staff who alleged they were not provided 10 minute breaks during shifts from 2017 to 2023.

Fair Work Ombudsman (FWO) Cracking Down on Sham Contracting

The Fair Work Ombudsman and the Australian Taxation Office (ATO) have announced that they are ramping up their focus on sham contracting.

ATO Assistant Commissioner, Tony Goding, said that data continues to uncover employer behaviour that ‘doesn’t contractually add up’.

The Fair Work Ombudsman, Anna Booth, reminded employers that beyond unlawfully mislabelling a worker as a contractor, ‘employers also must not knowingly say something false or misleading to convince an employee to become a contractor to do the same work, or dismiss an employee to engage them as a contractor to do the same work.’



CPI

All Groups CPI annual inflation was 3.7 per cent in the 12 months to February 2026, down from 3.8 per cent in the 12 months to January 2026.

CPI for Hobart was 4% for the 12 months to February 2026.

Annual Wage Review

Last year’s annual wage review delivered a 3.5% rise in all award rates and the national minimum wage.

This year the ACTU is seeking a 5% rise and Australian Chamber of Commerce and Industry a 3.5% increase.   The Federal Government said it would lodge a submission to the annual wage review recommending the Fair Work Commission (FWC) award an ‘economically sustainable real wage increase’.

What Employers can Expect in 2026

JULY 2026 PAY DAY SUPERANNUATION

Employers must pay superannuation on the same day as wages or salaries.

Late payments will incur the superannuation guarantee charge with daily compounding interest.

1 JULY 2026 PAID PARENTAL LEAVE EXTENSION

The Federal Government-funded paid parental leave scheme continues to evolve in 2026, with eligible parents entitlement increasing up to 26 weeks of paid parental leave.

CHANGES TO GENERAL PROTECTIONS INVOLVING UNFAIR DISMISSAL APPLICATION CLAIMS

In response to increased dismissal-related claims in 2025, the FWC is reviewing its case management process.