A reference in a modern award to an “all-purpose allowance” generally means it is included when any calculation, such as a penalty rate, is applied under that award.
For example, the Manufacturing and Associated Industries and Occupations Award 2020 provides for a leading hand allowance. It is one of several types of allowances referred to in cl30 of the award as an “all-purpose allowance”.
“All-purpose” means that the allowance is included in any calculations under the modern award that is based on an employee’s “ordinary pay”, such as overtime and other penalty rates. The leading hand allowance is considered part of an employee’s ordinary rate of pay.
Not all modern awards contain a reference to allowances being “all-purpose”.
Some awards may include an “all-purpose allowance” in an employee’s ordinary pay for the purposes of annual leave, such as the Food, Beverage and Tobacco Manufacturing Award 2020. Examples of allowances commonly referred to as an “all-purpose allowance” include industry allowance, tool allowance, leading hand allowance, heavy vehicle driving allowance and (occasionally) first-aid allowance.
Reference should be made to the relevant modern award or enterprise agreement to determine the circumstances under which a particular allowance is payable.
