Coverage of the Supported Wage System
The Supported Wage System was established for employees who have a disability that affects their productive work capacity. Appropriate workplace relations arrangements are necessary to enable the payment of pro-rata wages. Pro-rata wages under the Supported Wage System are determined by references to the employee's assessed productive capacity. Under the Supported Wage System, an employee with a disability may only access Supported Wage System if the industrial instrument that applies to the employee contains Supported Wage System provisions.
Australia’s national workplace relations systems
From 1 January 2010 most employers and employees in Australia are now covered by the national workplace relations system and one set of workplace relations laws, including most employers and employees who were previously covered by state workplace laws. Accordingly, the majority of employers and employees will be covered by a modern award or enterprise agreement, most of which will contain the model Supported Wage System provisions. The national system covers all employers and their employees who are:
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operating as constitutional corporations (these are corporations that engage in trading or financial activity, usually Pty Ltd companies)
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operating in Victoria, Northern Territory or the Australian Capital Territory or a body corporate incorporated in Northern Territory or the Australian Capital Territory
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the Commonwealth or a Commonwealth authority
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employers employing a waterside employee, maritime employee or flight crew officer in connection with interstate or overseas trade or commerce.
The national system also covers employers (and their employees) who are:
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private sector employers, including those operating as sole traders, partnerships or unincorporated entities in Victoria, New south Wales, Queensland, South Australia or Tasmania
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public service employers in Victoria, in Northern Territory or the Australian Capital Territory
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local government employers in Tasmania, Victoria and the Northern Territory.
The federal system does not cover private sector employers and their employees in Western Australia, and public sector employees in states other than Victoria.
Scope of the Supported Wage System assessment rate
The productivity percentage rate, determined by approved assessors under the Supported Wage System, applies only to the basic rate of pay and any wage-related leave entitlements. All other employment conditions, such as the length of annual and long service leave or the employee’s access to training, are determined in accordance with the conditions prescribed in the relevant industrial instrument.
Applying the Supported Wage System assessment rate
The wage, upon which the productivity based percentage rate is applied, will vary depending on whether the employer and employee are covered by the federal or state workplace relations systems, and which particular industrial instrument they are employed under.
Minimum wages under the national workplace relations system
From 1 January 2010, the special Federal Minimum Wages for employees with a disability that were established by the Australian Fair Pay Commission in 2006 continue to operate as part of a 'transitional national minimum wage order'.
The specialist Minimum Wage Panel within Fair Work Australia is required to review minimum wages annually, with any wage adjustments taking effect from the first pay period to commence on or after 1 July each year. The Panel's first decision will commence from the first period starting on or after 1 July 2010. In each annual minimum wage review, Fair Work Australia is required to make a national minimum wage order for employees not covered by a modern award or agreement. The national minimum wage order is to include a special minimum wage for employees with a disability.
Details of minimum wage decisions can be found by visiting the Fair Work Australia website (please see related links).
Under the relevant state workplace relations systems, minimum wages are presently contained in awards and are adjusted in accordance with decisions of the various state industrial relations tribunals. The decisions of the tribunals and the date of effect for any adjustments vary from state to state.
Who qualifies for these special minimum wages?
Employees with a disability are defined under the Fair Work Australia Act 2009 as those who qualify for the Disability Support Pension under section 94 or 95 of the Social Security Act 1991, or who would be so qualified but for certain Australian residency requirements.
State authorities
Further information can be obtained from the relevant state industrial tribunals as follows:
Queensland
Department Industrial Registry
Telephone: 07 3227 8060
Website (link will open in a new window):
New South Wales
NSW Industrial Registrar
Telephone: 02 9258 0866
Website (link will open in a new window):
Tasmania
Tasmanian Industrial Commission
Telephone: 03 6233 7821
Website (link will open in a new window):
South Australia
South Australian Industrial Registry
Telephone: 08 8207 0999
Website (link will open in a new window):
Western Australia
Western Australia Industrial Relations Commission
Telephone: 08 9420 4521
Website (link will open in a new window):