Q/ This financial year we will have 53 weekly (or 27 fortnightly) pay periods. What should we tell employees about this? A/ Occasionally in your cycle of weekly or fortnightly pays, you may have a financial year that has 53 weeks or 27 fortnights instead of the “standard” 52 and 26 pays assumed in the … Read more

Q/ We currently pay superannuation on our tool and fixed rate car allowances based on advice from the ATO we’ve had in the past. However, I noticed the ATO has recently changed its “Withholding from Allowances” document to include a superannuation column. It says these allowances are not superable. Can you assist with what is … Read more

For the 2013/14 income tax year there are no changes to the income tax rates or thresholds, therefore most tax tables currently used by employers can continue to be used for the next financial year. However, there will be changes to tax tables for 2013/14 where employers have employees that: have a Higher education loan … Read more

Tax-free Threshold for Redundancy Payments From 1 July 2013, the tax-free threshold for redundancy payments is as follows: $ 9,246 (formerly $8,806 for 2012-2013); plus $ 4,624 (formerly $4,404 for 2012-2013) for each completed year of service Employment Termination Payment (ETP) Cap For 2013-2014, the ETP cap amount is $180,000 (formerly $175,000 for 2012-2013). Whole-of-income … Read more

Q/ Can employees salary sacrifice their cashed in leave? A/ This is quite complicated – and the practical answer is “possibly not” This is a 2 step process Step 1 – cashing in leave For most employees, cashing in annual leave is only allowed in very limited circumstances: Where the employee is covered by an … Read more

Q/ Our General manger has asked why we should accrue LSL on-costs from day one? If you have any supporting documentation/website link that you can forward me, it would be a real help. A/ While companies usually do not have to make LSL payments for their employees until after 5, 7 or 10 years (depending … Read more