On 31 March 2026, the Fair Work Commission handed down a significant ruling, now widely referred to as the Junior Rates Decision (“the Decision”).
This outcome has prompted questions across multiple industries – including among members of the Australian Car Wash Association (ACWA) – about its scope and potential impact.
The Decision arose from an application by the Shop Distributive and Allied Employees Association (SDA). The union sought to have employees aged 18 to 20 paid full adult wages, rather than the reduced junior rates currently applied based on age. The Fair Work Commission determined that these changes should be implemented progressively over a four-year period, allowing businesses time to adjust.
Naturally, this has led to uncertainty among ACWA members about whether the Decision effects employment arrangements within car wash operations. At this stage, the answer is no. The Decision specifically applies only to employees covered under three awards: the General Retail Industry Award 2020, the Pharmacy Industry Award, and the Fast-Food Industry Award.
Car wash employees, by contrast, have long been understood to fall under the Vehicle Repair Services and Retail Award 2020. As a result, the Junior Rates Decision does not currently extend to car wash businesses.
However, it would be short-sighted to dismiss the broader implications. Decisions of this nature often set influential precedents, and it is likely that unions may rely on this ruling in future applications across other industries – including potentially the car wash sector. While there is no clear timeline or certainty around if or when such changes might occur, the possibility remains.
ACWA will continue to closely monitor developments in this area and provide timely updates to members. In the meantime, operators should remain informed and consider how similar changes could impact workforce planning and cost structures in the future.
Staying ahead of regulatory and industrial relations developments is key to maintaining a resilient and compliant business.
The Association will notify all current financial ACWA Members when our ACWA IR/Wages HelpLine Specialist has finalized the Schedule for the Annual Wage Rates Summary 2026 which will come into effect from the first pay period that commences on or after 1 July 2026.
