The Federal Government will no longer pay Equal Remuneration Order (ERO) Supplementation from July 2021 on most grants. The base rate of affected grants will not increase to include the supplementation.
If the base grant for programs currently receiving ERO supplementation does not rise to incorporate the ERO payments, it will result in significant funding cuts for community sector organisations delivering federally funded programs. This will mean cuts to the services that people in communities across Australia rely on. It also means that the gains in gender equity achieved as a result of the Equal Remuneration Order will be diminished by job cuts in the community sector’s predominantly female workforce.
Funding for ERO payments is secured (until June 2021) by an act of the Commonwealth Parliament, the Social and Community Services Pay Equity Special Account Act 2012. Under this act, the last payment to the special account occurs on 1 July 2020, which is why ERO payments cease in July 2021. The payment to the special account in 2020 is $554 million.
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