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Recent developments from the Fair Work Commission signal a significant shift in how junior employees may be paid across Australia. While still in a provisional stage, the proposed changes are already prompting employers to reassess their workforce planning, payroll systems, and compliance strategies.

What Is Changing?

The Fair Work Commission has indicated that junior rates of pay for employees aged 18 and over may be gradually phased out. The proposal currently applies to key awards in retail, fast food, and pharmacy, with the likelihood of broader application over time.
Under the proposal, eligible employees would receive incremental pay increases every six months until they reach the full adult rate. Importantly, this applies only once an employee has completed six months of continuous service with the same employer.

Why this matters for Employers

For many organisations, particularly those employing younger workers, this change introduces a new layer of complexity. Employers will need to carefully track:

• Employee age milestones
• Length of service
• Scheduled pay increases over time

Without robust systems in place, the risk of payroll errors and non-compliance increases significantly.

Potential flow-on effects
While the intention is to improve earnings for young workers, there are practical considerations employers should be aware of:

• Employees who change jobs may temporarily lose access to higher pay rates if they have not met the six-month service requirement with a new employer.
• Some employers may reconsider workforce strategies due to rising labour costs, particularly in entry-level roles.
• There may be increased scrutiny around termination decisions where timing coincides with pay increases.

These factors highlight the importance of balancing compliance with fair and ethical people management practices.
Impact on Enterprise Agreements

For organisations operating under enterprise agreements, the proposed changes introduce an additional compliance obligation. Award increases will reset the minimum benchmark, meaning agreement rates must continue to sit above updated award rates at all times.  This may require more frequent reviews than the traditional annual wage update cycle.
Practical steps to take now
Although not yet finalised, there is value in preparing early. We recommend

• Reviewing your workforce demographics, particularly employees under 21
• Assessing whether your payroll systems can handle staged increases and service-based triggers
• Auditing enterprise agreements against potential award changes
• Training managers and HR teams on the implications of these developments

At The BelRose Group, we see this as another example of how employment law continues to evolve in ways that require proactive planning rather than reactive fixes.
 
These proposed changes reflect a broader shift toward equity in pay, but they also introduce operational challenges that cannot be overlooked. Employers who take early steps to understand and prepare will be in a stronger position to manage both compliance and workforce expectations.
 
If you would like support reviewing your current arrangements or preparing your systems for these potential changes, we are here to help.
 
Contact The BelRose Group
Email: Support@BelRoseGroup.com.au
Phone: 1300 308 707

Payday Super is Coming – What Employers Need to Know!

From 1 July 2026, Australia’s superannuation system will change significantly. Employers will be required to pay super at the same time as salary and wages, replacing the current quarterly payment model. While the start date may feel distant, the scale of change means preparation should begin well before then.
 
What is changing?
Under the new “payday super” rules, super must generally be paid within seven business days of each pay run, and the payment must be received and allocated by the employee’s fund to be considered on time. This effectively embeds super into every payroll cycle.
The reforms are designed to reduce unpaid super and give the Australian Taxation Office greater visibility and faster enforcement options.
 
Summary of key changes

• Quarterly super will be phased out
  Super will align with weekly, fortnightly or monthly pay cycles.
• Late super becomes tax deductible
  This includes payments made under ATO payment arrangements, though interest charges remain non-deductible.
• New penalty framework
  Existing penalties of up to 200% will be replaced with a late lodgement penalty of up to 50% of the unpaid super.
• Simplified earnings definition
  “Ordinary time earnings” and “salary and wages” will be replaced with a single concept of qualifying earnings.

Payroll, HR and compliance impacts
These reforms increase payroll complexity and the margin for error. Employers will need robust systems to:

• Identify which payments attract super
• Maintain accurate employee and super fund data
• Track contribution limits and changes across pay periods
• Ensure contracts, awards and enterprise agreements allow payroll changes

At the same time, recent Fair Work Act amendments now allow employees, unions and the Fair Work Ombudsman to pursue unpaid super directly, increasing compliance exposure.
 
Cash flow and Director risk
Super will become an immediate cash flow obligation. For some businesses, this may increase financial strain and, in serious cases, raise insolvency risks. Importantly, failure to meet employee entitlement obligations, including super, can remove access to safe harbour protections for directors.
 
ATO’s transitional approach
The ATO has indicated a 12-month transitional compliance period from 1 July 2026, using green, amber and red risk zones. Education is expected for lower-risk issues, with enforcement focused on persistent non-compliance. However, this guidance is not binding, and errors may still attract scrutiny.
 
What employers should do now
Preparation should include:

• Reviewing payroll and super systems
• Modelling cash flow under payday super
• Auditing employee data and super records
• Reviewing employment documents and pay cycles

Our view
At The BelRose Group, we see payday super as a reform that will quickly expose weak systems and outdated processes. Employers who plan early will be far better placed to manage the transition smoothly and reduce risk.
 
If you would like support assessing readiness for payday super or reviewing payroll and employment frameworks, please contact us:

Email: Support@BelRoseGroup.com.au 
Phone: 1300 308 707

Criminal record checks are now standard practice in many industries, used to manage organisational risk, meet regulatory obligations, and support safer hiring. But while useful, these checks are not risk-free, and mishandling them can lead to legal issues and reputational damage.
 
Employers can usually request a check from applicants or employees, but only where it’s clearly relevant to the role. For example, a check may be appropriate where the role involves working with vulnerable people, financial assets, or sensitive information. However, applying a blanket approach without role-specific reasoning can expose an organisation to claims of unfair treatment or discrimination.
 
A criminal record does not automatically make someone unsuitable for a role. The nature of the offence, how long ago it occurred, any pattern of behaviour, and its relevance to the role should all be considered. Employers also need to be mindful of privacy obligations, particularly as job applicants don’t fall under the same privacy exemptions as current employees. Criminal history is classified as sensitive information, and must be handled with care, stored securely, limited to those with a genuine need to know, and destroyed when no longer required.
 
Spent convictions laws differ across Australia, and employers must take care not to rely on information they shouldn’t consider. Often, candidates disclose more than is necessary out of confusion or caution, and decision-makers may mistakenly act on that information.
 
Problems commonly arise when checks are requested too early, applied inconsistently, or when candidates are not given a fair chance to explain the context of a past offence. The strongest approach is one that’s fair, proportionate, and well-documented.
 
Criminal record checks can support informed decision-making, but only when used appropriately. If your current process needs review, The BelRose Group can help you implement policies that are both effective and legally compliant.