Each year, the Fair Work Commission is tasked with the
job of reviewing and setting minimum rates of pay for modern awards
and the national minimum wage. This is referred to as the
'annual wage review'. The minimum wage plays an important
role in providing pay equality and adequate income to low income
households. The rates set through this process often have the
greatest impact on small to medium businesses as they are required
to adapt operations and staffing levels to meet their budgets. In
this article, we consider how the minimum rates and wages are
determined and likely trends for the next annual wage
review.
Since the 1907 Harvester decision and the introduction of the
minimum wage into the Australian workplace system, it has been a
key function of the Commission (and its predecessor national
workplace relations tribunals) to review and set the minimum wage
for both employees covered by an award and award free employees. In
June 2013, the Commission delivered
