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Junior rates application (AM2024/24)

This article will outline what you need to know about the upcoming variations to Tanda Managed Templates as a result of the Junior rates application.

Three Tanda Managed Templates will be varied due to the Junior rates application Decision. The three Managed Templates are:

Please see below for further details.

Background on the Junior rates application

In June 2024 the Shop, Distributive and Allied Employees’ Association (SDA) applied to the Fair Work Commission (FWC) to vary the minimum rates for adult aged junior employees in the Fast Food Industry Award, the General Retail Industry Award and the Pharmacy Industry Award. This application is known as the Junior rates application (AM2024/24).

On 26 August 2026, the Fair Work Commission handed down a Decision in this case that will result in variations to the three modern awards under the application.

Between 1 December 2026 and 1 July 2029, the junior rates for employees aged between 18 and 20 years old will be a phased out. This change is applicable to employees who have been employed for more than 6 months with their employer.

Employees aged between 18 and 20 years old who have been employed 6 months or less will continue being paid a junior rate until their tenure exceeds six months.

The first phase of increases will take effect from the first pay period commencing on or after 1 December 2026.

NOTE: If there is a transfer of business, employment with the old employer counts as employment with the new employer for the purposes of calculating the 6 month employment period.

Junior Rate Increase Phases

Please expand the below tabs for the effective dates and percentage increase of each phase. Each percentage increases has been highlighted in orange.

NOTE: Currently, the new minimum hourly rates for adult juniors has only been published for the first phase effective 1 December 2026.

A Determination with the updated minimum hourly rates for each round of increases will be published by the Fair Work Commission closer to the effective date of each phase.

Fast Food Industry Award

General Retail Industry Award

Pharmacy Industry Award

Automation in Tanda

The phased in increases to junior rates under the FFIA, GRIA and PIA Managed Templates will be automated in Tanda.

The rate increase for an employee aged between 18 and 20 years that has exceeded 6 months employment will be automated using the Employment start date field in the employee profile.

For an individual employee, this field can be found by navigating to Workforce > Staff > select the relevant employee > Personal Details.

For details on how to report on the employment start dates for multiple employees, please see this section of the guide.

No action is required to receive the increases in your Managed Award Template. The update will occur automatically and apply to rosters and timesheets from the first full pay period after the new rates are effective.

Please see below for the status of each update to the effected Managed Templates.

Fast Food Industry Award

The final Determination for the Fast Food Industry Award has been published with the new base hourly rates that will take effect from 1 December 2026.

Tanda Compliance Team is currently in the process of updating the FFIA Managed Template to align with the Determination.

Further communications will be sent once the new rates are live in the product.

General Retail Industry Award

The final Determination for the General Retail Industry Award has been published with the new base hourly rates that will take effect from 1 December 2026.

Tanda Compliance Team is currently in the process of updating the GRIA Managed Template to align with the Determination.

Further communications will be sent once the new rates are live in the product.

Pharmacy Industry Award

While the final Determination has been published for the Pharmacy Industry Award 2020, the body of the Award does not set out the rounding for each junior hourly rate. Clause 16 of the Award only sets out the minimum hourly rates for adult employees.

At this time we are waiting for the updated Fair Work Ombudsman Pay Guide to be published with new minimum hourly rates for junior employees. Once published, the new rates for junior employees aged between 18 and 20 years old will be updated the Tanda PIA Managed Template.

Additional communications will be sent when the new rates are live in the product.

Updating Your Payroll

Depending on the payroll software you use, you may need to update base hourly rates manually in your payroll software to also reflect the increase.

Please see below for further details on actions required within payroll.

Tanda Payroll

For Tanda Payroll clients, the changes to junior rates will update automatically in payroll for any employees on one of the Managed Award Templates.

The new earnings rates for the new 'Employed for more than 6 months' base rates will be created in Tanda Payroll after creation of the first pay run after the effective date.

Xero and MYOB AccountRight Live

For Xero and MYOB AccountRight Live clients, base rates update automatically through Tanda's integration with these providers.

The rates will be updated upon export of the first finalised pay period after the new rates have come into effect.

NOTE: For the timesheet period where the rate increases have taken effect, the period will need to be exported the day after the pay period ends to reflect in Xero and MYOB correctly.

For example, if your pay period starts on Monday, 7 December 2026 and ends Sunday, 13 December 2026, this pay period must be exported on Monday, 14 December 2026.

No further action is required, however, you should confirm that the updates have occurred as expected before finalising your first pay run after the change.

Other payroll systems

At the beginning of the first full pay period commencing on or after 1 December 2026, follow the steps below to match the rates in your payroll software to the rates in Tanda:

1. Generate a report of the new base hourly rates in Tanda. To do this navigate to Compliance > Award Template > click Manage next to the applicable modern award:

In the settings for each Manage Award Template, you will find a payroll configuration report button. For example, please see the below button for the integration with CloudPayroll:

2. Then update the base hourly rates in your payroll software to match the new base hourly rates contained in the Payroll Configuration Report.

NOTE: Depending on the payroll software integration enabled, the configuration report button might be named something different but it will always be located in the same place as the above image.

3. If you currently export base rates via your payroll integration, you will also need to add new export codes that correspond to the new junior rates into the Payroll Configuration settings for each applicable Managed Template.

To do this navigate to Compliance > Award Template > click Manage next to the applicable modern award > under Payroll Configuration click on Configure for payroll:

A variation of the below form will then display for export code population. What the fields available for population will be dependant on your payroll integration.

Questions

What reporting resources are available?

Review of employee data

We recommend reviewing employee data to ensure it is correct for accurate payroll ahead of the changes to junior rates taking effect.

As the automaton of a junior employee's wage increase will be automated based on age and employment start date, these are two of the key data points that should be reviewed.

The Export Employee Data (CSV Report) can be used to extract and review employee data in bulk. This export can be found by navigating to Workforce > Staff > Tools > Export Employee data (CSV).

The CSV download will contain key information like:

  • Date of birth

  • Employment start date

  • Hourly rate (corresponds to the Overriding Hourly Rate field)

  • Employment Basis

To update key employment details such as Start Date, Employment Type and Overriding Hourly Rate in bulk, the Manage Employment Conditions CSV export can be used.

This export can be found by navigating to Workforce > Staff > Tools > Manage Employment Conditions.

For details on updating these fields in bulk via CSV please Schedule Changes to Employees' Pay Conditions in Bulk.

Projected wage increases

If you would like to review which employees will receive a wage increase ahead of the Decision taking effect, the Employee Report can be utilised.

This report contains the below fields:

  • Date of Birth

  • Age

  • Employment Start date

  • Tenure

What will happen if a junior employee has an overriding hourly rate?

The Overriding hourly rate field in the employee profile is often used to pay above award rates:

While the 18 to 20 year old junior rates under the applicable Managed Award Templates will be updated in line with the Fair Work Commission's determinations, if an overriding hourly rate has been entered the employee will continue to be paid this rate after the effective date. Tanda will not update an overriding hourly rate. It is the responsibility of the employer to manage overriding hourly rates.

To report on employees that have an overriding hourly rate entered, the Employment Conditions Report can be exported.

To use this tool navigate to Workforce > Staff > Tools > Manage Employment Conditions:


​The HOURLY RATE in the CSV export will indicate any employee with an overriding hourly rate entered.

This tool can also be used to schedule change to employee Pay Conditions, including the increase of overriding hourly rates.

To be altered when an employee has an overriding hourly rate that is less than the award hourly rate, the below Pay Check can be utilised:

What will happen if there is an IFA set up to disable one of the varied junior rates?

To automatically facilitate the increases for adult junior employees, the increased hourly rates will be added as new award rules and allowances in the Managed Templates.

We recommended reviewing any IFAs set up in Tanda whenever there is a variation to the corresponding modern award and determine whether any of the new award rules need to be added to the list of rules disabled by the previously configured IFA tag.

For further information on the IFA feature please see Individual Flexibility Agreements (IFAs) Explained.

Will the rate changes also be automated for Higher Duties automated via a Managed Template?

Yes, the updated rates for junior employees will also be automated via the Higher Duties Builder in the Tanda Managed Templates.

Once the updates rates are effective in your account, the higher duty jumps configured in the Managed Template will also update to include the new rates in the automation.

No additional action will be required if you are using Tanda Payroll.

If you are using Xero or MYOB AccountRight Live, new earnings rates will be generated to account for the new multipliers required to automate the increase from one new rate to another. These new earnings rates will update in Xero or MYOB AccountRight Live upon export of the first finalised pay period after the new rates have come into effect.

For other payroll systems, if you currently export base rates via your payroll integration you will need to add new export codes into the Payroll Configuration settings for the new junior base rates and higher duties rates for each applicable Managed Template.

To do this navigate to Compliance > Award Template > click Manage next to the applicable modern award > under Payroll Configuration click on Configure for payroll:

A variation of the below form will then display for export code population. What the fields available for population will be dependant on your payroll integration.

I have an enterprise agreement and need to update the custom base hourly rates to align with the Junior rates application Decision. How do I do this?

If you have an enterprise agreement facilitated in Tanda via custom award rules, it is your responsibility to maintain the hourly rates and pay conditions.

We have prepared a short video with steps on how to implement the junior rates changes for custom award rules including how to automate the pay increase when a junior employee has been employed for more than six months.

🎥 The video demonstrating how to update your custom base hourly rate rules can be viewed here.

Further Information

For further information on the Tanda Managed Templates please see:

The Junior rates application Decision can viewed here.

The Determinations to for the wage increases effective from the first full pay period starting on or after 1 December 2026 can be viewed via the below links:

The Fair Work Ombudsman information page on the changes can be viewed here.

If you have any questions on the rate changes, reach out via the chat window to your right in this article or to support@tanda.co.

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