Self Employed Contribution Rate &
Interest Rate 2006-2007
In June 2006 the Board set both the
interest rate and contribution rate that will be
applied to the self employed worker for the next
financial year as follows:
The interest rate for the 2006-2007 financial
year will be 10.6%.
The contribution rate (the rate at which a self
employed person can contribute into the scheme)
remains at $156.00 per quarter for the 2006-2007
financial year (this rate is based on a weekly
wage of $720.00 per week.) However, the self
employed worker will now have the option of
choosing to contribute at a higher rate of
$182.00 per quarter if they so wish (this rate
is based on a weekly wage of $840.00 per week.)
|March, 2006 - TasBuild News
Info Flyer to Employers
EMPLOYERS CONTRIBUTION RATE LOWERED
WORKERS BENEFITS INCREASED
Effective From Your
July 2006 Return
As an employer within the industry, when
you submit your returns on time and then
subsequently pay your tax invoices on time you
will be offered a subsidised rate of 0.3%.
This is a substantial lowering of the current
subsidised rate of 0.7% that is offered in these
circumstances at present. You are urged
to submit your returns on time and pay your
invoices on time to avail yourselves of this
heavily subsidised rate.
Correspondence clearly indicates due dates, if
these dates are not met, returns and invoices
are recalculated to the full rate of long
service leave automatically. The Full Rate of
Long Service Leave is 1/60th (or approximately
1.667%) of an ordinary weekly wage to accrue 13
weeks paid leave after 15 years of service. In
line with these changes to the fund, as detailed
below, the cost of long service leave from your
July 2006 return increases to 1/40th (or 2.5%).
Please be aware that from your July 2006
return if you do not submit your returns on time
and do not pay your tax invoices on time the
rate will be recalculated automatically up to
Effective from Your
January 2006 Return
Pre January 2006 workers in the construction
industry accrued 13 weeks paid leave after 15
years of service in the industry.
Effective from your January, 2006 return workers
commenced accruing 13 weeks leave after 10 years
of service. Current benefits were not
converted. Workers in effect, as from the
January return, started accruing leave quicker.
Pro-rata entitlements under certain
circumstances will be offered after 7 years of
service, this remains unchanged. However,
pro-rata entitlements on death (minimum 55 days
service) and retirement or permanent disability
(minimum 2 years service) have been introduced
from 1 January 2006.
Should you require further information please do
not hesitate to
Who is a worker and who is a subcontractor?
Q: Do I have to contribute for a labour only
A: Yes, there is no such thing as a labour only
subcontractor. For the purposes of this
legislation and the Australian Taxation Office
the labour-only worker is deemed to be an
Q: How do I work out who is a worker and who is
A: There are several avenues to seek advice. We
advise employers to contact their employer
organisations or accountants.
The Australian Taxation Office has an excellent
question and answer tool to help you, it is
called the Building & Construction Industry
Employee/Contractor Decision Tool and you can
find it online at www.ato.gov.au
Just follow the links to Rates, Calculators &
Tools, Businesses, Tools, Building &
Construction Industry Employee/Contractor
Questions asked include such things as: Is the
worker free to work for a number of clients or
just for you? Do you pay their superannuation,
redundancy payments, sick leave etc? Does the
worker work their own hours or hours determined
by you? Does the worker take on a financial risk
with the work? Is the worker paid per job or per
week/fortnight? They are examples only and a
number of different criteria will be used to
determine the workers capacity.
Contact TasBuild for any assistance in this
Q: What happens if I send workers interstate or
overseas to work?
A: Interstate work can count, but not overseas.
If you are a Tasmanian employer who employs
workers in another State for short periods, you
may apply to the long service authority in that
state or territory for an exemption from their
long service coverage provided that you continue
to record the workers service under TasBuild.
For extended working periods the interstate
scheme may demand that you register and
contribute into their scheme for those
particular workers for that project.