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Changes to employer obligations

WESTERN Australian employers faced tax and superannuation changes at a State and Federal level that took effect from July 1. Payroll tax legislation has been amended to raise the minimum payroll tax rate to 6 per cent and lift the threshold to $750,000.

For the first time, eligible termination payments will be subject to payroll tax. This will particularly affect employers with retiring staff and affect the cost of unfair dismissal claims that are resolved by payment of an eligible termination payment.

Payroll tax also extends to "employee-like" contractors and it is no coincidence that unions are targeting employers using employee-like contractors. The Office of State Revenue, with its payroll tax amnesty now over, is also increasing its efforts to expose employers using employee-like contractors.

Employers are now required to make Superannuation Guarantee contributions at least quarterly and to provide written advice to each employee within 30 days of each contribution that includes the amount of the contribution and the name of the superannuation fund to which the contribution has been made.

Rod Collinson, lawyner

9429 7637

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