Federal Government funding
The Australian Government has committed around $3 billion to fund its share of the wage increases, awarded by Fair Work Australia (FWA). This updates the previous commitment of $2.1 billion, as it includes the cost of the final Equal Remuneration Order and the full phase in period to 30 June 2021.
To meet its share of the costs of these wages, the Australian Government is providing social and community sector (SACS) supplementation payments to organisations delivering Commonwealth-funded programs that employ workers affected by FWA’s decision.
The Australian Government has been working with state and territory governments to reach agreement on providing supplementation for Commonwealth-State Agreements.
The rate of Commonwealth supplementation provided to eligible organisations that employ staff in Queensland varies depending on whether they are subject to the Queensland Industrial Relations Commission decision.
Organisations subject to the Queensland Industrial Relations Commission decision will receive Commonwealth Government supplementation that reflects the higher rates awarded by the Queensland Industrial Relations Commission.
Organisations that are not subject to the Queensland Industrial Relations Commission decision and employ staff under the SACS Modern Award will receive supplementation as per the phase in arrangements that will be outlined in the Equal Remuneration Order.
In response to the Queensland Industrial Relations Commission decision of 2009, the Queensland Government began providing supplementary funding to some organisations. For those organisations, supplementary funding has been incorporated into their ongoing funding.
QCOSS and NDS continue to provide information to the State Government on the wage pressures being faced by Queensland organisations.
The Queensland Department of Communities is currently transitioning organisations to output-based service agreements as their current agreements expire. Organisations are required to determine what level of outputs they are able to deliver within existing resources (including rising wage costs).
The QCOSS Unit Costing Tool is useful for organisations trying to understand the impacts of rising wage costs and confidently negotiate funding and service agreement outputs.