APPENDIX 1 - ANNUAL WAGE DECISION

MINIMUM WAGE INCREASE - JULY 2026

The Fair Work Commission (FWC) has announced that minimum Award rates will increase by 4.75% effective from the first pay period commencing on or after 1 July 2026.  

Update Attachments

Attachment A  New wage rates

Attachment B            Allowances

Attachment C           Ordinary Hours of Work & Rostering

Attachment D           Overtime & Penalty Rates

Unfair Dismissal Claims and Threshold

Small employers (less than 15 employees including casuals) are free from unfair dismissal claims for the first twelve months of employment. Larger employers (15 or more employees) are immune for first six (6) months.

However, employees are entitled to lodge adverse action claims, which may include allegations arising from the termination of employment.

The Fair Work Commission can generally only hear unfair dismissal claims where the employee's annual earnings are below the high-income threshold, which is $190,100 per annum from 1 July 2026.

The maximum compensation available for a successful unfair dismissal claim remains capped at six (6) months' remuneration.

Superannuation Guarantee Contribution (“SGC”)

Members are reminded that, from 1 July 2026, employers are required to pay superannuation contributions at the same time as wages and salaries. Each ordinary pay cycle will trigger a seven (7) day deadline for superannuation contributions to be processed and received by an employee's nominated superannuation fund.

The employer superannuation contribution rate remains unchanged - 12% of ordinary time earnings.
The Pastoral Award (Award) can be accessed via Pastoral Award 2020 [MA000035]

ATTACHMENT A

The following wage rates and allowances come into effect from the first pay period commencing on or after 1 July 2026.

NOTE:

If you pay rates above those specified, you must ensure that employees remain better off overall compared to the applicable Award.  This includes maintaining wages and employment conditions that are more favourable than those provided under the Award.  Refer to Clause 17 of the Award for the detailed requirements and arrangements that must be satisfied.

 The Farm and Livestock classification structure which includes dairy workers and wage rates appear in clauses 31 and 32 in the Award.

FLH – Farm and Livestock Hand

NOTE:
Classification Levels 4 and 6 do not apply to Dairies

Junior Rates

ATTACHMENT B

ALLOWANCES

NOTE:
Regulations 3.33(3) and 3.46(1)(g) of Fair Work Regulations 2009 set out the requirements for pay records and the content of payslips including the requirement to separately identify any allowance paid.

1.        All-purpose allowances - What is an all-purpose allowance?

 All-purpose allowances are added to the daily or weekly rate and included in the rate of pay of an employee who is entitled to these two allowances. The all-purpose rate is included when calculating any penalties, loadings, or payment while an eligible employee is on any leave.

The following allowances are paid for all-purposes under the Pastoral Award:

                i.          leading hand allowance - clause 18.2(b); and

              ii.          first aid allowance - clause 18.2(c).

                              i.     Leading hands – Clause 18.2(b)

A leading hand in charge of 2 or more people must be paid as follows:

The allowance contained in clause 18.2 applies to part-time employees on a pro-rata basis.

                              i.     First aid allowance - Clause 18.2(b)

An employee appointed by their employer to perform first aid duty as required in addition to their usual duties, and holding a current recognised first aid qualification, such as one from St John Ambulance or similar body, must be paid an allowance of 
$ 0.49 per hour.

2.        Other expense allowances (NOT all purpose) – Clause 18 Expense-related allowance details.

(a)       Tool and equipment allowance

(b)      Travelling allowance

(c)       Use of vehicle allowance – $1.00 per kilometre

(d)      Overtime meal allowance - $17.90 (unless meal provided)

(e)      Re-imbursement of expenses

(f)        Wet weather clothing and footwear

(g)      Protective clothing

(h)      Charges for accommodation, meat, goods, and services

ATTACHMENT C

ORDINARY HOURS OF WORK AND ROSTERING

Broadacre Farm

 1.      Minimum Engagement – Clauses 10.6 and 11.5
Part-time and casual Farm and Livestock Hands (“FLH”), excluding casual pieceworkers, must work or be paid for a minimum of three (3) hours on any shift.

 The minimum payment is reduced to two (2) hours when the employee is:

(a)       engaged to perform the work of a dairy operator; and

(b)      is 18 years of age or younger; and

(c)       is a full-time secondary school student.

2.      Ordinary hours of work and rostering - Clause 34.

 Clause 34.1
The average ordinary working hours for a FLH will be fixed by agreement between the employer and the employees but will not exceed an average of 38 hours per week over a 4-week period (refer clause 34.1).

Clause 34.2
The ordinary hours of work of FLHs (other than station cooks) will not exceed 152 hours in any consecutive period of 4 weeks (refer clause 34.2).

ATTACHMENT D

OVERTIME AND PENALTY RATES – Clause 35.

1.      All time worked by an employee greater than the ordinary hours specified in clause 34*

Clause 35.1

Ordinary hours of work and rostering -will be regarded as overtime (refer clause 35.1).

*(more than 152 hours over 4 consecutive weeks).

2.      Clause 35.2 Overtime and penalty rates

The rate of pay for overtime for a FLH will be:

.

‍ NOTE:
The overtime rates for casual employees have been calculated by adding the casual loading prescribed by clause 11.3(a)(ii) to the overtime rates for full-time and part-time employees prescribed by clause 35.2.

‍ ‍1.      Clause 35.3

No employee will be entitled to payment for overtime, or equivalent time off instead, unless:

(a)     the employee makes a claim to the employer or their authorised representative either within two (2) weeks after the overtime is alleged to have been performed; or

(b)    by the next date of payment of the employee’s wages

whichever is the later.

2.      Clause 35.4

Overtime and public holiday rates are calculated on the ordinary hourly rate before any deduction is made for keep.

3.      Clause 35.5 - Public holidays

A farm and livestock hand required to work on a public holiday will be paid 200% of the ordinary hourly rate.

4.      Clause 35.6.

An employee and employer may agree in writing to the employee taking time off instead of being paid for all overtime that is worked by the employee under this agreement.

Schedule E - Agreement for time off instead of payment for overtime

‍ ‍

If you have any questions regarding this update don’t hesitate to contact us:

‍ Laurie Bolton                                      Robynne Bolton
0410 529 528                                  0423 764 377
‍ ‍ laurie@wphorizons.com.au‍ ‍robynne@wphorizons.com.au‍
‍ ‍www.wphorizons.com.au

Disclaimer
The information contained in this client update is general in nature and is provided for information purposes only. It does not constitute legal advice.
While care has been taken to ensure the information is current and accurate at the time of publication, laws and interpretations may change.
For advice specific to your circumstances, please contact us directly.