[1] Common rule awards were standard in Australia's state industrial relations systems and covered hundreds of thousands of employees and employers.
It has long been held that the Australian parliament's conciliation and arbitration power,[2] did not permit common rule awards in the Federal industrial relations system.
[3] In 2003 Victoria referred powers to the Commonwealth,[4] to provide for the Australian Industrial Relations Commission to make common rule awards for Victoria.
The question of referral disappeared with the establishment of a national regime of workplace relations through the Workplace Relations Amendment (Work Choices) Act 2005 (Cth), which did not rely on the Australian parliament's conciliation and arbitration power instead being primarily founded on the corporations power.
[4][9] The Fair Work Act established common rule awards called "Modern Awards" that are of general application and set out minimum terms and conditions for particular industries and occupations.