What do the penalty rate cuts mean for you?

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Penalty rate cuts? The Fairwork Commission has decided to cut penalty rates on Sunday’s and Public holiday’s for full time and part time employees in:

  • Hospitality
  • Restaurants
  • Fast Food
  • Retail
  • Pharmacy

What is actually changing?

Full time and part time Hospitality workers will have their Sunday rates slashed from 175% to 150%.

While Retail full-time and part-time workers will have their Sunday rates reduced from 200% to 150%

Penalty rates for casual workers will remain the same.

Which poses the question if Employers are paying less for their staff on Sunday’s and Public Holiday’s will the Surcharges charged to customers on these day’s be waived? It seems unlikely!

How will it affect me?

How the new rate cuts will affect you will depend on whether you are full-time, part-time or casual.

Good news if you are casual!

These changes do not affect you, casual Sunday rates will remain the same at 175%.

 If you are a full-time or part-time employee your rate will be slashed from 175% on a Sunday to 150%.

 The argument for doing this is that the reduction in penalty rates would lead to longer trading hours, increased services and an increase in overall hours worked because it wouldn’t cost employer’s as much to be open and trading on a Sunday.

Many have commented that the decision to cut penalty rates was about protecting employers and not employee’s, who seem to have gotten the raw end of the stick in this situation.

When does the new penalty rates come into effect?

The new penalty rate changes will come into effect on the 1st July 2017.

Changes to the start and finish times for early or late shift workers in the restaurant and fast food industry’s will begin in March 2017.

What if I question my employer about my rates, can he cut my hours or stop rostering me on?

Absolutely not! It is a breach of the Fair Work Act for an employer to sack you or stop rostering you on because you raised concerns about your wages.

 The Fair Work Commission has made it very clear that it sets the rates independently of the government and the BCA (Business Council Australia) has supported the decision

“it is essential that penalty rates continue to be set independently by the commission, free of political interference.”

 Unfortunately I think this has left many workers feeling disenchanted and angry. As those in privileged positions whom wouldn’t have a quam about missing out on $80 a week are making decisions based on their own circumstances and the well being of the business and not that of the people working in them.

penalty rate cuts

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What do the penalty rate cuts mean for you? Overall rating: 4.8 out of 5 based on 60 reviews.

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Loan Amount

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$300


Maximum
$2,000

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Terms

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12 Months


Maximum
12 Months

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Up to 20% Establishment Fee
+ monthly fee up to 4%

Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.

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$2,100


Maximum
$4,600

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13 Months


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24 Months

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Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.

This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.

Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51

* Reducing interest means that the 20.56% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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$5,000


Maximum
$10,000

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13 Months


Maximum
36 Months

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Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.

* Reducing interest means that the 19.88% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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