18/06/2026
๐ง ๐๐ฅ ๐๐ผ๐ป๐ณ๐ฒ๐๐๐ถ๐ผ๐ป:
โWe assumed our salaries covered everythingโฆ until we learnt about offsetting rules.โ
Itโs a common blind spot for many small and growing businesses.
On the surface, it seems simple:
You pay someone a salary โ it covers all of their work.
But in reality, salary arrangements donโt automatically override Award or minimum entitlements.
This is where ๐ฐ๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐๐๐ฎ๐น ๐ผ๐ณ๐ณ๐๐ฒ๐๐๐ถ๐ป๐ด comes in. And itโs often misunderstood.
Itโs essentially where a salary is intended to cover things like:
โข Overtime
โข Penalty rates
โข Allowances
โข Other Award entitlements
But hereโs the critical part:
If itโs not permitted in the applicable Modern Award, isnโt structured correctly, or doesnโt align with how the employee actually works across each individual pay period (as per some Awards), businesses can still end up being non-compliant.
And the risk isnโt just theoretical. The result?
Unexpected underpayments, back-pay and penalties.
๐ฆ๐ผ, ๐ต๐ฒ๐ฟ๐ฒโ๐ ๐๐ผ๐๐ฟ ๐ธ๐ฒ๐ ๐๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐: A salary isnโt a โblanket coverโ - it needs to be deliberately structured and reviewed against Award standards and actual entitlements.
๐๐ณ ๐๐ผ๐โ๐ฟ๐ฒ ๐ป๐ผ๐ ๐๐๐ฟ๐ฒ ๐๐ต๐ฒ๐๐ต๐ฒ๐ฟ ๐๐ผ๐๐ฟ ๐๐ฎ๐น๐ฎ๐ฟ๐ ๐ฎ๐ฟ๐ฟ๐ฎ๐ป๐ด๐ฒ๐บ๐ฒ๐ป๐๐ ๐ฎ๐ฟ๐ฒ ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐น๐ ๐๐ฒ๐ ๐๐ฝ, ๐ถ๐โ๐ ๐ฐ๐ฒ๐ฟ๐๐ฎ๐ถ๐ป๐น๐ ๐๐ผ๐ฟ๐๐ต ๐ฎ ๐พ๐๐ถ๐ฐ๐ธ ๐ฐ๐ต๐ฒ๐ฐ๐ธ-๐ถ๐ป ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐ถ๐ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ๐ ๐ฎ ๐ฝ๐ฟ๐ผ๐ฏ๐น๐ฒ๐บ.