How will these percentages be used?
The following percentages will be used by the Australian Government to calculate supplementation amounts offered to organisations. We will apply the following formula, using relevant percentages for the “SACS ERO increase”, depending on where organisations are located:
Program funding amount x % SACS wage component x SACS ERO increase
|New South Wales||0.78%||2.13%||3.47%||4.82%||6.16%||7.51%||8.85%||10.20%||11.54%|
|Australian Capital Territory||1.86%||5.04%||8.22%||11.40%||14.58%||17.76%||20.94%||24.12%||27.30%|
How have these percentages been calculated?
These percentages have been calculated based on:
- Movement from the previous State Award rates^ to bring them up to the new Equal Remuneration Order (ERO)* amounts, and
- The supplementation amount due in a financial year. In 2012-13 the increase only applies from 1 December 2012 to 30 June 2013 (seven months). Therefore, the percentage is 7/12ths of the first ERO instalment percentage. For each subsequent year the percentages in the table above are based on the ERO that applies from 1 July to 30 November (five months) plus the ERO percentage increase from 1 December to 30 June (seven months).
- These percentages are based on the increases at Level 4.
The Government has tested its calculation assumptions through a number of ways to ensure a robust process, including testing with the sector, and also by examining data generated through the Social Policy Research Centre (SPRC) Survey in 2011.
Why are these percentages different across States/Territories?
The aim is that by 1 December 2020, all employees in Australia who are covered by the SACS Modern Award will end up on the same wage.
The starting State Award wage rates^ differ between the States and Territories. As a result, the percentage increases used for supplementation also differ by State and territory.
Queensland Social and Community Service providers
The rate of Commonwealth supplementation provided to eligible organisations that employ staff in Queensland will vary depending on whether they are subject to the Queensland Industrial Relations Commission (QIRC) decision. The QIRC rates are higher, as the equal pay decision has been almost fully phased in, whereas the Fair Work Australia decision starts being phased in from 1 December 2012. Read more about supplementation for Queensland providers
Western Australian providers
In Western Australia, two workplace relations systems operate; the Western Australian State workplace relations system, and the national workplace relations system. Only organisations in the national workplace relations systems will be provided with offers for supplementation.
^ The Notional Agreement Preserving State Award (NAPSA) wage rates are transitional rates that SACS workers were on prior to the SACS Modern Award rates on 1 July 2012.
* The Equal Remuneration Order (ERO) handed down by Fair Work Australia (FWA) on 22 June 2012 determines how these pay increases will be introduced. The ERO Link to external website is available on the FWA website (Link to external website).