A Bill for an Act to amend the Fair Work Act 2009, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act is the Fair Work Amendment (Protecting Take Home Pay) Act 2017.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this Act | The day after this Act receives the Royal Assent. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Fair Work Act 2009
1 Section 12 (definition of reduction in take‑home pay)
Repeal the definition, substitute:
reduction in take‑home pay:
(a) in relation to the cessation of copied State awards—see subsection 768BR(3); and
(b) in relation to the variation of modern awards—see subsection 135A(5).
2 Section 12 (definition of take‑home pay)
Repeal the definition, substitute:
take‑home pay:
(a) in relation to the cessation of copied State awards—see subsection 768BR(2); and
(b) in relation to the variation of modern awards—see subsection 135A(4).
3 At the end of Division 2 of Part 2‑3
Add:
135A Protecting take‑home pay
Object of this section
(1) The object of this section is to ensure that no employee’s, or prospective employee’s, take‑home pay is reduced as a result of a variation of a modern award.
FWC cannot reduce take‑home pay
(2) A modern award cannot be varied in a way that would, or would be likely to, reduce the take‑home pay of any employee covered by the award.
Determinations reducing take‑home pay of no effect
(3) A determination of the FWC made on or after 22 February 2017 that would, or would be likely to, have the effect of reducing the take‑home pay of any employee covered by a modern award is of no effect.
Definition of take‑home pay
(4) The take‑home pay of an employee covered by a modern award is the pay the employee actually receives, or would receive if increases in the modern award minimum wage were included in the employee’s pay:
(a) including wages and incentive‑based payments, and additional amounts such as allowances and overtime; but
(b) disregarding the effect of any deductions that are made as permitted by section 324.
Note: Deductions permitted by section 324 may (for example) include deductions under salary sacrificing arrangements.
Definition of reduction in take‑home pay
(5) An employee covered by a modern award suffers a reduction in take‑home pay through a variation of the award if the amount of the employee’s take‑home pay for working particular hours or for a particular quantity of work would be less after the variation than it would have been before.