SBDC e-news - March 2017

The lowdown on penalty rate changes

Photo of a small business ownerThe recent announcement by the Fair Work Commission to change retail and hospitality penalty rates only applies to businesses under the federal industrial relations system (for example, incorporated businesses and organisations). 

At this stage, there are no changes for businesses under the State industrial relations system.  As most micro and small businesses in WA are sole traders, partnerships or trusts covered by the State award system, the changes are unlikely to apply to this sector.

For businesses covered by the federal industrial relations system, reductions in public holiday penalty rates will commence from 1 July 2017. It is not yet known when the reduction in Sunday penalty rates will be phased in as the Fair Work Commission is currently considering this matter.

For more information on penalty rates or to clarify whether you are in the federal or state system, visit the Fair Work Commission website or contact Wageline on 1300 655 266.

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