What is the contribution rate?
The cost of funding long service leave is approximately 1.67% of a weekly ordinary wage (13 weeks after 15 years) or 2.5% (13 weeks after 10 years). On the 1’st of January 2006; employees benefit was changed to provide 13 weeks entitlement after 10 years (2600 days) of service.
In 1998 the subsidised contribution rate was 0.7%
From July 2006 the subsidised contribution rate was 0.3%
From the April 2009 return the subsidised rate was 0.6%
From the October 2009 return the subsidised rate was 2%
From the October 2017 return to-date the subsidised rate is 1.8%
What are the benefits of submitting returns and paying invoices on time?
An employer is required to submit returns by the due date, which is the 14th day of the month following that to which the return relates.
An employer is required to pay the invoice generated at the end of the month following invoice issue date.
Where the return is submitted on time and the invoice is paid on time, the applicable rate will be 1.8% of the reported wages (effectively a 20% discount).
Where a return is not lodged on time, or the subsequent invoice is not paid within trading terms, the applicable rate will be 2.5% of the reported wages.
How do I calculate the contribution?
To calculate the contribution required, simply multiply the worker’s ordinary daily gross wage, multiplied by the days the worker was paid for, in the return period. The result is multiplied by 1.8% or 2.5% as applicable.
(Daily Gross Wage x Paid Days) x 1.8% (2.5%) = Contribution
What about contributions in arrears?
Once registered as an employer, any arrears are calculated at the full rate – 2.5%.
Do I have to pay GST on contributions?
An exemption from charging GST on employer contributions came into effect on 1 July 2005. However, for employers who may have outstanding contributions, TasBuild is required to charge GST on all contributions between the periods 1 July 2000 and 1 July 2005.