Tag: employer

Businessman flying

Super clearing house end-of-year dates

Posted on | by Allan Hall

Please note the ATO’s annual office shutdown dates impacting the Small Business Superannuation Clearing House.

As the ATO approaches their annual office shutdown, these are the key dates to be aware of for the Small Business Superannuation Clearing House (SBSCH):

  • 5:30 pm AEDT on 10 December 2024 – all super payments with instructions received after close of business on this date will be processed from 2 January 2025
  • 28 January 2025 – super guarantee quarterly payments due.

The ATO and their contact centres will close at noon Tuesday 24 December 2024 and re-open at 8:00 am Thursday 2 January 2025, local time.

For the latest information about the SBSCH and ATO Online system maintenance schedule, please check SBSCH system status and system maintenance.

CONTACT ALLAN HALL BUSINESS ADVISORS

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ATO Recovers Unpaid Super as part of Employer Compliance

Posted on | by Allan Hall

ATO highlights of 2023–24 year

Highlights of super guarantee (SG) annual employer compliance results for 2023–24.

The ATO’s report underscores their commitment to collecting employees’ superannuation entitlements by ensuring employers meet their SG obligations. It also highlights the significant impact of compliance activities and employer engagement in recovering unpaid superannuation for employees.

Highlights of the 2023–24 financial year are:

  • Employers are paying more than 92.4% of the SG they are required to, without ATO intervention
  • A total of $1.91 billion in superannuation guarantee charge (SGC) liabilities was collected through ATO compliance, proactive reminders and prompts, and employer voluntary disclosures of unpaid SG, for over 1.13 million employees
  • $932 million was distributed to employee funds and individuals from liabilities raised for current and prior financial years, for 797,000 employees
  • Approximately 23,600 SG cases were finalised, resulting in $659 million SGC liabilities and $300 million in Part 7 penalties being raised
  • 167,000 employers received proactive ATO actions including reminders and prompts to check their obligations, raising $240 million in SGC liabilities:
    • 100,000 reminders to employers
    • 67,000 prompts to employers
  • Employers made voluntary disclosures of unpaid super, resulting in around $539 million in SGC liabilities being raised.

It is best to take swift action on an outstanding tax debt

For those unable to pay their full obligations, payment plans can be set up through the ATO’s online services. It is important to note that taxpayers with debts under $200,000 can request these arrangements online through their tax agent or independently.

In cases of genuine financial hardship, there are additional options available, including deferred payments and interest remissions. However, address any outstanding issues proactively to avoid further penalties.

The ATO has also begun a phone campaign to recover debts

Remain cautious and never disclose personal information, such as tax file numbers or credit card details, over the phone. Always request a call reference and independently contact the ATO using a publicly listed number for verification.

If you have any concerns regarding the legitimacy of ATO communications, contact Allan Hall Business Advisors. Our team is here to help you navigate these changes and ensure that your business remains compliant with the latest tax obligations.

For more information, or if you have concerns about unpaid tax, please contact Allan Hall Business Advisors.

CONTACT ALLAN HALL BUSINESS ADVISORS

Related reading

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common employment issues

Getting Ready for the Festive Season

Posted on | by Allan Hall

What Businesses Need to Know

As we quickly approach the end of year, it is important that Employers begin preparing for their end of year shutdown period.

Over recent years there have been a number of changes to employment legislation that apply during this period, and it is important that Employers are aware of these changes. 

1. Managing Employee Leave

If Employers are planning to shut down over the December/January period, managing Employee leave balances should be considered. As of 1 May 1 2023 both Award-covered and award-free Employees can be directed to take accrued annual leave during a ‘shut down’ period, such as between Christmas and New Year.

However, for any Employee who does not have accrued annual leave to cover the shut-down period, they cannot be directed to take unpaid leave.

An employer and employee can:

  • agree in writing for an employee to take a period of unpaid leave; or
  • come to an arrangement, agreed in writing, for an employee to take annual leave in advance, resulting in a negative annual leave balance.

If an employee does not agree to either of the above, they should either be paid their salary/wages based on their employment contract during the shut-down period, or alternatively, you could allow them to work during the shut-down period.

What can Employer’s do to avoid this? Employers should be conscious of whether or not to approve annual leave requests prior to the shutdown period, to ensure that there is a sufficient balance to cover the shutdown period. If required and agreed to, employees could take a period of unpaid leave throughout the year at their request.

2. Notice of Shut Down

In addition to the changes above, there are also updated rules in many Awards regarding the notice to Employees of an upcoming shut down. Employers must provide at least 28 days’ written notice of the temporary shutdown period to all impacted employees.

Employers should check the relevant Award and communicate the planned shut down in line with the Award guidelines. 

3. Working on Public Holidays

For Employers that continue to operate over the festive season, the Fair Work Act stipulates that Employers are obligated to ‘request’ Employees to work on a public holiday before requiring them to do so. Failure to adhere to this requirement could lead to unlawful work assignments and violation of the Fair Work Act.

For an Employee to work on a public holiday, one of these conditions must be met:

  • an Employer has requested the Employee to work the public holiday, and the Employee has agreed to work; or
  • the Employee’s refusal to work a public holiday is deemed unreasonable.

Employers shouldn’t rely solely on standard rostering practices for public holidays and the following actions are recommended: 

  1. Issue a ‘draft roster’ for periods including public holidays, or issue specific requests to team members to work on upcoming public holidays
  2. Provide an explanation as to why you believe the need for the team member to work on the public holiday is reasonable
  3. Provide Employees with the opportunity to agree to work or state their reasons for refusal
  4. Finalise the roster based on Employee responses and consider reasons for refusals
  5. Communicate with Employees if their reasons for refusal are considered unreasonable.

4. Penalty Rates

If Employees agree to working on public holidays, it is important for Employers to be aware of the penalty rates and entitlements that apply to them under the relevant Award. This may include:

  • Additional pay (different to their standard hourly rate)
  • An additional day off or additional annual leave
  • Minimum shift lengths on public holidays
  • Options for Employees to request to substitute a public holiday for another day.

Employers should review the relevant Award and ensure all entitlements and correct rates are paid to Employees. We also have included below the 2024 public holiday dates that apply in all states and territories:

  • Christmas Day – Wednesday 25th December
  • Boxing Day – Thursday 26th December
  • New Year’s Day – Wednesday 1st January

Need assistance

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here. to discuss any questions you may have regarding the shutdown period and managing your business during this period.

CONTACT ALLAN HALL HUMAN RESOURCES

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managing debt

Updated ATO approach to Unpaid Tax and Super obligations

Posted on | by Allan Hall

Revised approach targets businesses failing to respond to unpaid tax and Employer Superannuation obligations, plus Individuals with unpaid taxes.

Key points

  • Intensified focus on businesses that ignore unpaid tax and employer superannuation obligations
  • Stricter actions for businesses and individuals not responding to reminders, including SMS and letters
  • Prompt action urged to avoid penalties.

The ATO has emphasised that businesses and individuals failing to meet their tax obligations not only jeopardise their own financial health but also pose risks to other small businesses and employees.

As a result, the ATO is implementing a more targeted strategy aimed at businesses that refuse to respond or set up payment plans.

Key Changes to ATO Debt Collection

The ATO’s revised approach includes:

  • Director Penalty Notices (DPNs): Directors of businesses with outstanding Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, or superannuation guarantee charge (SGC) obligations who fail to engage will face quicker action, including the issuance of DPNs. Directors of multiple companies may receive DPNs that cover all related entities.
  • Garnishee Notices: The ATO may issue garnishee notices to financial institutions, employers or other businesses that hold funds for non-compliant companies or individuals.
  • Engaging External Debt Collection Agencies: From January 2024, the ATO has engaged Recoveries Corp to assist in the collection of overdue debts. Anyone who receives a call from debt collectors are urged to remain vigilant and verify the authenticity of the communication.

It is best to take swift action on an outstanding tax debt. For those unable to pay their full obligations, payment plans can be set up through the ATO’s online services. It is important to note that taxpayers with debts under $200,000 can request these arrangements online through their tax agent or independently.

In cases of genuine financial hardship, there are additional options available, including deferred payments and interest remissions. However, address any outstanding issues proactively to avoid further penalties.

The ATO has also begun a phone campaign to recover debts.

Remain cautious and never disclose personal information, such as tax file numbers or credit card details, over the phone. Always request a call reference and independently contact the ATO using a publicly listed number for verification.

If you have any concerns regarding the legitimacy of ATO communications, contact Allan Hall Business Advisors. Our team is here to help you navigate these changes and ensure that your business remains compliant with the latest tax obligations.

For more information, or if you have concerns about unpaid tax, please contact Allan Hall Business Advisors.

CONTACT ALLAN HALL BUSINESS ADVISORS

Further reading

  1. ATO changing approach to collecting unpaid tax and super »
  2. Find out what happens if you don’t pay your ATO debt »
  3. Director penalties »
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Happy friends enjoying on terrace. Smiling man and women are celebrating together during sunset. They are wearing casuals in party

What Business Owners need to know about FBT this Christmas

Posted on | by Allan Hall

Fringe Benefits Tax treatment of work Christmas parties and gifts

As the festive season draws near, you’re probably gearing up for year-end celebrations and thinking about Christmas gifts for your valued customers, clients and employees.

During this time, it’s important to consider the impact of Fringe Benefits Tax (FBT) on your generosity to avoid any unexpected tax consequences for your business.

Here are some guidelines to help you navigate FBT this Christmas:

Christmas Parties

If your business submits an FBT return and uses the 50/50 split method for entertainment, 50% of the cost of your Christmas party will be subject to FBT

If you don’t use the 50/50 method, your Christmas party costs can be exempt from FBT if one of the following applies:

  • The party is held on business premises on a working day and only current employees attend, OR
  • The party costs under $300 per person.

If your business provides entertainment to employees more than 10 times a year, your Christmas party may still be subject to FBT regardless of cost. Be sure to consult with your Allan Hall advisor.

Example

  1. A law firm hosts an employee-only Christmas party in the office garden on a Friday afternoon, with a marquee, live band, premium drinks, and a banquet prepared by a celebrity chef. The cost per person is $490, and this will be exempt from FBT.
  2. An electrical company holds its Christmas party at a local restaurant with food, drinks and entertainment. Ten employees and their partners are invited, totalling 20 people. The total cost is $5,000, or $250 per person, and this will also be exempt from FBT.

Customer Gifts

Gifts to customers are tax-deductible and not subject to FBT, as long as they are genuine gifts, such as Christmas hampers or a bottle of wine. However, if you take a customer out for drinks instead, the cost may be subject to FBT.

Staff Gifts

Gifting employees is a great way to show appreciation and is generally tax-deductible. However, be aware that gifts over $300 are subject to FBT.

Gifts under $300 may qualify for the minor benefits exemption from FBT. But if the gifts are recreational (such as tickets to a concert, cinema or sports event), neither an income tax deduction nor GST can be claimed.

Navigating FBT rules for Christmas parties and gifts can be tricky. Our team has extensive experience in FBT and is ready to help. For personalised advice, reach out to your Allan Hall Advisor before organising your holiday events and gifts for employees or customers.

NOTE: Different FBT rules apply to tax-exempt bodies and charities, so consult Allan Hall if this applies to your business.

CONTACT ALLAN HALL BUSINESS ADVISORS

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Superannuation Boost for Paid Parental Leave

Posted on | by Allan Hall

A Step Toward Gender Equity in Retirement Savings 

The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 marks a pivotal step in addressing the gender gap in retirement savings.  

Economists, industry advocates and employers have welcomed this reform, praising it as a long-overdue measure to improve women’s financial security and help close the gender gap in retirement savings.

By ensuring that Paid Parental Leave includes super contributions, the Bill acknowledges the reality that caregiving responsibilities should not come at the cost of a secure retirement. 

Employers please note: 

  • The new Bill takes effect from 1 July 2025 
  • Amendment provides eligible parents with an additional 12% of their Paid Parental Leave as a super contribution 
  • This contribution will be in line with the SG rate and will increase over time with any future adjustments to the legislated rate. 

Introduced as part of the Government’s broader reforms, this Bill extends superannuation contributions to Paid Parental Leave, providing financial support for families and working parents, particularly women. 

The new Bill, which takes effect on 1 July 2025, directly addresses this gap by providing eligible parents with an additional 12% of their Paid Parental Leave as a super contribution. This contribution will be in line with the Superannuation Guarantee (SG) rate and will increase over time with any future adjustments to the legislated rate. For many families, this change could amount to a super contribution of up to $3,150, a significant boost that will grow as the Paid Parental Leave scheme reaches 26 weeks by 2026. 

This amendment builds on previous government efforts to strengthen the superannuation system, ensuring that more Australians, particularly women, can look forward to a dignified retirement. Alongside reforms to improve the flexibility, duration and income thresholds for Paid Parental Leave, this change underscores the importance of supporting working families both at the time of birth and in the long term. 

As this Bill takes effect, it represents a significant investment in the future of working women, ensuring that their contributions—both in the workplace and at home—are recognised and valued, setting a new standard for financial equity in Australia. 

CONTACT ALLAN HALL BUSINESS ADVISORS

Background

For decades, women — who make up the majority of primary caregivers — have faced financial setbacks after becoming parents. Research shows that, on average, women experience a 55% reduction in earnings during the first five years of parenthood, a loss that compounds over time. This drop in income, coupled with the compounding effects of superannuation contributions based on lower wages, has left women retiring with around 25% less super than men.

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Closing Loopholes Changes

Posted on | by Allan Hall

There are new workplace laws that are coming into effect from 26 August 2024, as part of the Closing Loopholes changes.

These changes are important to review if you engage workers under employee or independent contractor arrangements.

We have listed the upcoming changes below and have linked additional articles providing further information.

  1. New definitions of employment – The Fair Work Act will define ’employee’ and ’employer’ based on the true nature and practical reality of the working relationship. This may result in some independent contractor working arrangements being characterised differently. Learn more »
  2. Changes to casual employment – The Fair Work Act will redefine ‘casual employee,’ introduce a new pathway for casuals to become permanent, and increase frequency to provide the Casual Employment Information Statement. Learn more »
  3. Right to disconnect – Eligible employees will have the right to disconnect outside work hours, including refusing to respond to employer or third-party contact, with rules to determine whether such refusal is unreasonable. Note, these changes will not apply to small business employers until 26 August 2025. Learn more »
  4. New minimum standards for gig economy workers and the road transport industry – New minimum standards and protections for gig economy and road transport industry workers, called ‘regulated workers,’ will commence. The Fair Work Commission will be able to set minimum standards orders or guidelines regarding terms such as payments, deductions and insurance. The changes also expand access to collective agreements for regulated workers and provide the Commission with power to deal with dispute resolution for unfair terminations or deactivations.
  5. Additional workplace delegates’ rights – The Fair Work Act will expand rights and protections for workplace delegates. Workplace delegates will include regulated workers, such as employee-like workers and regulated road transport contractors.

There will be further changes to laws affecting Australian workplaces as a result of the Closing Loopholes Acts, and we will post articles to keep you up to date as these changes approach.

Need assistance?

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here to discuss any questions you may have with us in regard to the upcoming Fair Work Act changes and what your business will need to do to prepare for these. To learn more about our services, please click here.

CONTACT ALLAN HALL HUMAN RESOURCE

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Casual Employees or Part time

Casual Employment Changes

Posted on | by Allan Hall

Be aware of changes commencing 26 August 2024 if you employ casuals

What’s Changing?

As a result of the Closing Loopholes legislation passed earlier this year, the Fair Work Act will change effective 26 August 2024 to include:

  • A new definition of ‘casual employee’
  • Restrictions on casuals under specific arrangements being employed under fixed-term contracts
  • A new casual conversion process and employer obligations
  • Increased frequency to provide the Casual Employment Information Statement.

Casual Employee Definition

Under the new definition of ‘casual employee’ introduced to the Fair Work Act, an employee is only a casual if:

  • You can choose to offer work to your employee and it is also the employee’s choice whether or not to accept the work
  • There is no firm advance commitment to ongoing work
  • The employee’s work is described as casual
  • Employees will be paid a casual loading or a specific pay rate.

Conversion from casual to permanent employment 

Casual employees will remain casual until their employment status changes either through:

  • a conversion process or Fair Work Commission order, or
  • commencing work under a new arrangement, following acceptance of an alternative employment offer.

Replacing the existing casual conversion process, employees will be able to notify their employer, in writing, of their intention to change to permanent employment if they meet the following conditions:

  • they have been employed for at least 6 months (or 12 months if working for a small business employer)
  • they believe they no longer meet the requirements of the new casual employee definition.

Casual employees cannot notify their employer of their intention to convert to permanent employment if they:

  • are currently engaged in an ongoing dispute with their employer about casual conversion, or
  • in the last 6 months:
    • their employer refused a previous notification
    • a dispute with their employer about casual conversion has been resolved.

Employers must:

  • consult with the employee prior to responding to the notification, and
  • respond in writing to the employee within 21 days of the employee providing the notification, either accepting or refusing the change. Please note, there is specific information that must be included in the written acceptance or refusal.

Casual Employment Information Statement

From 26 August 2024, as well as providing the Casual Employment Information Statement (CEIS) to new casual employees, employers will also need to provide the CEIS to all casual employees in accordance with the below:

  • for non-small businesses:
    • as soon as possible and then after 6 months of employment, and
    • as soon as possible after 12 months of employment and then every 12 months after that.
  • for small businesses:
    • as soon as possible and then after 12 months of employment.

What should employers do if they employ casual employees?

  1. Review their situation: Employers should review their casual workforce to determine employee status based on the new definition focused on the practical working relationships. 
  2. Update contracts: Update any casual contract templates to remove outdated casual conversion references. 
  3. Check eligibility requirements: If an employee notifies of their intention to convert to permanent employment, check they meet the eligibility requirements, then consult and respond in writing in accordance with the legislative requirements.
  4. Schedule reminders: Employers should schedule reminders to update and issue the Casual Employment Information Statements at the required intervals. 

Need assistance?

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here to discuss any questions you may have regarding casual employment changes and employee’s eligibility to convert to permanent employment. To learn more about our services, please click here.

CONTACT ALLAN HALL HUMAN RESOURCE

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businesswoman

Independent Contractor Changes

Posted on | by Allan Hall

Effective 26 August 2024, changes to the definition of employment and contractor rights may result in some working relationships being characterised differently and the removal of unfair contract terms.

Definition of Employment and Worker Engagement

As a result of the Closing Loopholes legislation, on 26 August 2024 there will be a new definition of employee and employer under the Fair Work Act.

From 26 August 2024, determining if a worker is an employee or independent contractor will be based on the actual nature of the relationship between the parties. Accordingly, a multi-factor test will be used to determine the true working relationship. Factors in the test will include (and can vary from case to case):

  • the extent of control of, or the right to control, the worker
  • whether the worker is provided with tools and equipment
  • whether uniforms were provided and/or required by the principal
  • whether the worker is permitted to delegate or subcontract work
  • the remuneration structure – specifically, whether the worker receives payment of a periodic wage or salary or compensation by reference to the completion of a task or project
  • whether the worker is entitled to paid annual leave or sick leave; and
  • the express terms of the contract between the parties.

Unfair Terms in Contracts

Contractors can now approach the Fair Work Commission if they believe their contract includes unfair terms. The Fair Work Commission can:

  • Determine if a contract term is unfair, considering various factors
  • Set aside, amend, or vary the contract if it contains unfair terms.

Contractors earning above a yet to be determined ‘high-income threshold’ will not be able to seek an unfair contract remedy with the Commission however they can seek a court review. 

Sham Contracting

Sham contracting, where an employer falsely represents an employee relationship as an independent contractor arrangement, is prohibited under the Fair Work Act. Employers must review and correct any existing arrangements to ensure compliance.

What should employers do?

  1. Review Worker Classifications: Employers should review current working relationships to ensure they align with the updated criteria. The multi-factor test, as described above, should be used to accurately classify workers as employees or contractors.
  2. Assess and Review Contracts: Ensure current contracts accurately reflect the true nature of the working relationship. Make adjustments if there’s a mismatch between contract terms and practical reality.
  3. Avoid Sham Contracting: Ensure all employment arrangements are correctly classified and transparent. Misrepresenting an employee as an independent contractor is prohibited, so reviewing existing arrangements and updating them if they have been misrepresented, is crucial to comply with the new legislation.

Need assistance?

At Allan Hall HR, we have a team of experienced HR consultants. Please call us on 1300 916 764 or contact us here to discuss any questions you may have in regard to independent contractor changes, including reviewing contracts and the arrangements in place for independent contractors. To learn more about our services, please click here.

CONTACT ALLAN HALL HUMAN RESOURCE

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