A Modern Award will most likely apply to you if your business: 

• is an incorporated entity (generally this includes “Pty Ltds” or “Limited” companies) and some, or all of your staff have a guarantee of annual earnings (not including superannuation, commissions, variable incentives or the like) of less than $108,300 per year, or
• from 1 January 2011, if you are a sole trader or partnership in New South Wales, Tasmania, Queensland or South Australia.

 A Modern Award will generally not apply if:

• Your business operates as a sole trader or partnership in Western Australia. This is because Western Australia’s employment arrangements are covered by State legislation, or
• Your employees’ entitlements are determined by a registered Workplace Agreement.

If you are unsure whether you need to comply with the Award Modernisation changes, the Guild Group recommends that you check the AIRC web site or seek advice from your employer association or industrial adviser.

Changes to super in the Modern Award will limit the choice that most businesses currently have to select the default super fund for their award employees.

^ Sole traders and partnership arrangements are treated differently in each State depending on whether the State has employment legislation in place.