RIGHT TO SUPERANNUATION TO BE INCLUDED IN NATIONAL EMPLOYMENT STANDARDS (NES)
On the 22nd of June the Fair Work Amendment (Protecting Worker Entitlements) Act 2023 was passed by Parliament.
The effect of this legislation is to update the National Employment Standards (NES) from the 1st of January 2024 to include a right to super contributions.
This change expands the number of ‘national system employees’ with a workplace right to super who are able to take action in court to recover unpaid/underpaid super.
Primary responsibility for ensuring compliance with super contribution obligations will remain with the ATO who are responsible for enforcing compliance with the Superannuation Guarantee (Administration) Act 1992.
The Fair Work Ombudsman will also continue to be able to refer matters of unpaid/underpaid super to the ATO and, in appropriate circumstances, pursue unpaid super in a complementary role to the ATO.
The new legislation reflects the ongoing concerns of government, the ATO and the Fair Work Ombudsman around employers failing to pay super contributions.
Employers who are unsure about their super obligations or who are struggling to pay contributions on time, should get in touch for assistance.
CESSATION OF THE LOW & MIDDLE INCOME TAX OFFSET (LMITO)
It has been widely reported in the media that many taxpayers have been shocked to receive a substantially lower tax refund or even a tax bill upon lodgement of their 2023 tax returns.
A primary driver for this is the cessation of the Low & Middle Income Tax Offset (LMITO), which previously provided a tax offset of up to $1,500.
The LMITO was first introduced by the Morrison Government from the 2018/19 year and was intended to end in the 2020/21 year. However, it was subsequently extended a further year to 2021/22.
The LMITO was available to people with taxable income up to $126,000 in the 2021/22 year, with the maximum offset of $1,500 received by those with taxable income between $48,000 and $90,000.
Those with income in that range should expect a substantial change in their tax outcomes when lodging their 2022/23 income tax return.
If you have any questions about how the cessation of the LMITO will affect you, please get in touch.
LATEST FAIR WORK OMBUDSMAN COMPLIANCE ACTIVITIES
On the 20th of July, the Fair Work Ombudsman (FWO) issued a media release detailing the outcomes of their latest compliance activities which targeted 84 businesses in Melbourne’s inner south and inner west food precincts.
The FWO found that 86% of the businesses had breached workplace laws ranging from underpayments, failing to meet payslip requirements and failing to meet record keeping requirements.
The FWO continues to focus on the fast food, café and restaurant sector as nationwide compliance activities continue to uncover high levels of non-compliance.
Businesses are reminded that the fines and reputational damage associated with breaching workplace laws can be very significant. We encourage all employers, not just those in the fast food, café and restaurant sector, to take their obligations seriously.
If you need help to understand your businesses employer obligations, please get in touch.
TAXABLE PAYMENT ANNUAL REPORT (TPAR)
Businesses engaging contractors in the following industries are reminded of the obligation to lodge a Taxable Payments Annual Report (TPAR) by the 28th of August.
- Building & construction services
- Cleaning services
- Road freight/courier services
- Information technology services
- Security, investigation & surveillance services
Historical, ATO compliance activities have found that contractors operating in these industries have high levels of non-compliance in terms of reporting their income.
The TPAR regime requires businesses that engage contractors in these industries to report the payments they make in order to help the ATO improve compliance outcomes.
If you engage contractors in your business and need help to understand your TPAR lodgement requirements, please get in touch.
MEASURING WHAT MATTERS
On the 21st of July, Federal Treasurer Jim Chalmers published a ‘Measuring What Matters Statement’, being the Federal Government’s first iteration of a national wellbeing framework.
The Framework sets out the factors that are important to Australians’ individual and collective wellbeing across five broad themes – healthy, secure, sustainable, cohesive and prosperous.
The Framework consists of 50 indicators of the current status and long-term trends in Australian wellbeing.
It is intended that the Framework will be used to capture data about the wellbeing of Australians across time and to assist in the development of and evaluation of government policy.
The dashboard detailing the 50 indicators is available online now and will be updated on an annual basis.
There is an old adage attributed to the management guru Peter Drucker – “what get’s measured, get’s managed”.
We hope this applies to the Framework and that it becomes a useful tool to drive better outcomes for Australians individually and collectively.
QUOTE OF THE MONTH
This month’s quote comes from the American educational reformer, slavery abolitionist and politician, Horace Mann.
Mr Mann is quoted to have said – “Do not think of knocking out another person’s brains because he differs in opinion from you. It would be as rational to knock yourself on the head because you differ from yourself ten years ago.”
Mr Mann is promoting a more civil approach to public discourse that acknowledges that our opinions develop and change with time.
Rather than seeking to silence opinion that is contrary to our own, we should seek to understand one another’s point of view and debate with good intent.
When we treat everyone with dignity and engage in public discourse in good faith, we can uncover the best thinking and achieve so much more together.
Sky Accountants Ballarat
Phone: 03 5332 8855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 5428 1400
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437