{"id":8430,"date":"2026-04-03T15:12:53","date_gmt":"2026-04-03T04:12:53","guid":{"rendered":"https:\/\/aerogroup.com.au\/?p=8430"},"modified":"2026-04-03T15:21:25","modified_gmt":"2026-04-03T04:21:25","slug":"junior-pay-rates-scrapped-what-it-means-for-australian-business","status":"publish","type":"post","link":"https:\/\/aerogroup.com.au\/zh\/junior-pay-rates-scrapped-what-it-means-for-australian-business\/","title":{"rendered":"Junior Pay Rates Scrapped: What It Means for Australian Business"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"8430\" class=\"elementor elementor-8430\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-38a73ce elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"38a73ce\" data-element_type=\"section\" data-settings=\"{&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1d3bec7\" data-id=\"1d3bec7\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;,&quot;_ob_column_has_pseudo&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3d934db elementor-widget__width-initial ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-text-editor\" data-id=\"3d934db\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_postman_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h1 style=\"text-align: center;\"><span style=\"font-size: 34px;\"><b><span style=\"color: #3f9678;\">Junior Pay Rates Scrapped: <\/span>What It Means for Australian Business<\/b><\/span><\/h1><h2><span style=\"font-size: 31px; color: #399c79;\"><b>A Defining Shift for Employers<\/b><\/span><\/h2><p><span style=\"font-weight: 400; font-size: 22px;\">A major shift in workplace regulation is set to reshape payroll across retail, fast food, and pharmacy businesses.<\/span><\/p><p><span style=\"font-weight: 400; font-size: 22px;\">The Fair Work Commission has ruled to abolish junior pay rates for employees aged 18 to 20. This decision impacts hundreds of thousands of workers and signals a clear move toward wage equality across age groups.<\/span><\/p><p><span style=\"font-weight: 400; font-size: 22px;\">For business owners, this is a structural change that directly affects wage costs, workforce planning, and long-term profitability.<\/span><\/p><h2><span style=\"font-size: 31px; color: #399c79;\"><b>What\u2019s Actually Changing<\/b><\/span><\/h2><h3><span style=\"font-size: 27px;\"><b>The Core Update<\/b><\/span><\/h3><ul><li style=\"list-style-type: none;\"><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">Junior pay rates for employees aged <\/span><b>18 to 20 will be phased out<\/b><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Changes apply to:<\/span><ul><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; font-size: 21px;\">General Retail Industry Award<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; font-size: 21px;\">Fast Food Industry Award<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; font-size: 21px;\">Pharmacy Industry Award<\/span><\/li><\/ul><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">Implementation begins <\/span><b>December<\/b><span style=\"font-weight: 400;\">, with a <\/span><b>gradual phase-in over up to four years<\/b><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Employees under 18 remain on junior rates<\/span><\/li><\/ul><\/li><\/ul><h3><span style=\"font-size: 27px;\"><b>The Pay Shift in Practice<\/b><\/span><\/h3><p><span style=\"font-weight: 400; font-size: 21px;\">Previously:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">18-year-olds earned <\/span><b>70% of adult wages<\/b><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">19-year-olds earned <\/span><b>80%<\/b><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">20-year-olds earned <\/span><b>90%<\/b><\/span><\/li><\/ul><p><span style=\"font-weight: 400; font-size: 21px;\">Under the new structure:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">Wages will <\/span><b>increase incrementally each year<\/b><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">By <\/span><b>2029<\/b><span style=\"font-weight: 400;\">, affected employees will receive <\/span><b>full adult pay<\/b><\/span><\/li><\/ul><h3><span style=\"font-size: 27px;\"><b>The Scale of Impact<\/b><\/span><\/h3><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">Approximately <\/span><b>500,000 workers<\/b><span style=\"font-weight: 400;\"> are expected to benefit<\/span><\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Businesses with high volumes of young staff will experience the greatest financial impact<\/span><\/li><\/ul><h2><span style=\"font-size: 31px; color: #399c79;\"><b>What This Means for Your Bottom Line<\/b><\/span><\/h2><p><span style=\"font-weight: 400; font-size: 21px;\">This is not just a wage increase. It is a fundamental reset of how labour value is assessed.<\/span><\/p><p><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">The Commission\u2019s position is clear:<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">If two employees perform the same role at the same level, they should be paid equally regardless of age.<\/span><\/span><\/p><p><span style=\"font-weight: 400; font-size: 21px;\">For business owners, this introduces three immediate considerations:<\/span><\/p><h3><span style=\"font-size: 27px;\"><b>Margin Pressure Is Building<\/b><\/span><\/h3><p style=\"text-align: left;\"><span style=\"font-size: 21px;\"><span style=\"font-weight: 400;\">Labour-heavy businesses will feel this change quickly.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Rising wage costs without corresponding price adjustments compress margins.<\/span><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f498a82 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f498a82\" data-element_type=\"section\" data-settings=\"{&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-aae1d79\" data-id=\"aae1d79\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;,&quot;_ob_column_has_pseudo&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e4baf04 ob-has-background-overlay elementor-widget elementor-widget-image\" data-id=\"e4baf04\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_photomorph_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/aerogroup.com.au\/wp-content\/uploads\/2026\/04\/3.png\" class=\"attachment-large size-large wp-image-8434\" alt=\"\" srcset=\"https:\/\/aerogroup.com.au\/wp-content\/uploads\/2026\/04\/3.png 1024w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2026\/04\/3-300x225.png 300w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2026\/04\/3-768x576.png 768w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2026\/04\/3-16x12.png 16w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-049032b ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-text-editor\" data-id=\"049032b\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_postman_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3><span style=\"font-size: 27px;\"><b>Workforce Strategy Needs to Evolve<\/b><\/span><\/h3><p><span style=\"font-weight: 400; font-size: 21px;\">Businesses that previously relied on junior rates as a cost lever must now rethink:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Staffing mix<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Shift allocation<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Productivity expectations<\/span><\/li><\/ul><h3><span style=\"font-size: 27px;\"><b>Pricing Becomes a Strategic Lever<\/b><\/span><\/h3><p><span style=\"font-weight: 400; font-size: 21px;\">This shift creates an opportunity to reposition your business:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Review pricing models<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Strengthen value propositions<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Align service delivery with higher labour investment<\/span><\/li><\/ul><h2>\u00a0<\/h2><h2><span style=\"font-size: 31px; color: #399c79;\"><b>How to Stay Ahead of the Change<\/b><\/span><\/h2><h3><span style=\"font-size: 27px; color: #399c79;\"><b>Practical Actions You Can Take Now<\/b><\/span><\/h3><p><span style=\"font-weight: 400; font-size: 21px;\">A proactive approach creates control and clarity.<\/span><\/p><p><span style=\"font-size: 27px;\"><b>Review your exposure<\/b><\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Identify how many team members fall into the 18\u201320 age bracket<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Model wage increases over the transition period<\/span><\/li><\/ul><p><span style=\"font-size: 27px;\"><b>Update your forecasts<\/b><\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Adjust budgets to reflect staged wage increases<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Stress-test profitability under new cost structures<\/span><\/li><\/ul><p><span style=\"font-size: 27px;\"><b>Refine your operations<\/b><\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Improve efficiency across rostering and workflows<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Align team performance with wage growth<\/span><\/li><\/ul><p><span style=\"font-size: 27px;\"><b>Strengthen compliance<\/b><\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Ensure payroll systems reflect updated award rates as they roll out<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Stay ahead of regulatory deadlines<\/span><\/li><\/ul><h2><span style=\"font-size: 31px; color: #399c79;\"><b>Lead the Change, Don\u2019t React to It<\/b><\/span><\/h2><p><span style=\"font-weight: 400; font-size: 21px;\">Workplace regulation is shifting. Businesses that respond early protect margins and unlock smarter growth.<\/span><\/p><p><span style=\"font-weight: 400; font-size: 21px;\">Aero Accounting Group works with business owners to:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Model wage impacts with precision<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Restructure payroll and staffing strategies<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 21px;\">Align pricing, profitability, and compliance<\/span><\/li><\/ul><p><span style=\"color: #399c79; font-size: 21px;\"><em><b>Start the conversation with Aero Accounting Group today and position your business to stay profitable, compliant, and in control as these changes take effect.<\/b><\/em><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ea7c8e8 ob-has-background-overlay elementor-widget elementor-widget-image\" data-id=\"ea7c8e8\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_photomorph_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1536\" height=\"768\" src=\"https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/08\/Minimise-your-taxes-Maximise-your-profits-min.png\" class=\"attachment-1536x1536 size-1536x1536 wp-image-5566\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d890d86 ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-text-editor\" data-id=\"d890d86\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_postman_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bcde89d ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-heading ob-harakiri\" data-id=\"bcde89d\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_harakiri_text_clip&quot;:&quot;none&quot;,&quot;_ob_perspektive_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\"><div class=\"elementor-widget-container\"><h4 class=\"elementor-heading-title elementor-size-default\"><span style=\"font-size: 24px;\"><strong><span style=\"color: #2c9199;\">Need help?<\/span><\/strong><\/span><\/h4><\/div><\/div><div class=\"elementor-element elementor-element-7a4bee5 ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-text-editor ob-harakiri\" data-id=\"7a4bee5\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_postman_use&quot;:&quot;no&quot;,&quot;_ob_perspektive_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\"><div class=\"elementor-widget-container\"><div class=\"elementor-text-editor elementor-clearfix\"><p><span style=\"font-size: 22px;\">Not sure if your current accountant is a good long-term fit?<a href=\"https:\/\/aerogroup.com.au\/zh\/contact-2\/\">\u00a0Contact us at Aero Accounting Group<\/a>\u00a0today and we&#8217;ll help you minimise your taxes and maximise your profits<\/span><\/p><\/div><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-385c921 ob-has-background-overlay elementor-widget elementor-widget-spacer\" data-id=\"385c921\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_spacerat_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Maximise rental property deductions while staying ATO-compliant with fair and reasonable apportionment methods explained in PCG 2025 D6.<\/p>","protected":false},"author":2,"featured_media":8431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,20,35,175,38,39],"tags":[585,583,590,588,586,589,587,591,584,592],"class_list":["post-8430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aero-group","category-blogs","category-business-owner-tax-return","category-business-services","category-for-business","category-news","tag-abolishing-junior-rates","tag-business-payroll-tips","tag-compliance-payroll","tag-employee-pay-australia","tag-fair-work-wage-reform","tag-fast-food-wage-guide","tag-pharmacy-wage-management","tag-retail-wage-update","tag-workforce-cost-planning","tag-young-employee-wages"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.9 (Yoast SEO v22.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Junior Pay Rates Scrapped: What It Means 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