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 a leading hand allowance. In cl30 of the award, it is one of several types of allowances referred to as an “all-purpose allowance.” 

“All-purpose” means that the allowance is included in any calculations under the modern award based on an employee’s “ordinary pay”, such as overtime and other penalty rates. The leading hand allowance is considered part of an employee’ ordinary pay rate. 

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 annual leave, such as the Food, Beverage and Tobacco Manufacturing Award 2020. Examples of allowances commonly referred to as an “all-purpos allowance” include industry allowances, tool allowances, leading hand allowances, 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.