Monday 19 August - Creating Confidence In How People Are Paid
Portable long service leave - Community Services
On 20 June 2024, the New South Wales Parliament passed the Community Services Sector (Portable Long Service Leave) Bill 2024 introducing a new portable long service leave scheme for workers in the community service sector.
The Bill will impact up to 250,000 community sector workers in NSW by providing them with:
Employers will be required to pay a levy to the NSW Long Service Leave Corporation to cover their long service leave obligations.
The Bill will bring NSW in line with the portable long service leave schemes already in place for the community service sectors in the Australian Capital Territory, Victoria and Queensland.
It is expected that the scheme will commence from 1 July 2025.
Payroll Compliance – Cents per Kilometre
An employee’s award or agreement will specify the rate at which cents per kilometre should be paid. If an employee is not covered by an award or agreement, the employer should specify the rate, which may be outlined in a company policy.
Cents per kilometre should be processed through payroll. All systems should be configured as two separate codes for cents per kilometres:
Cents per kilometres under Single Touch Payroll (STP) Phase 2, should be reported as allowance type CD and does not attract superannuation and must be included in the employee’s income statement as a separate total allowance.
The ATO state that the first 5,000 km at up to 88 cents per kilometre is exempt from PAYG. Employers should consult with their payroll system provider to monitor when an employee exceeds 5,000 kilometres, potentially through a reporting feature.
Example: Cents per Kilometre Allowance
Eva uses her personal car to transport work related items to other sites. She is covered under the Clerks award and travels 5,200 km in a financial year. The award states she is entitled to 98 cents per kilometre:
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General Retail Industry Award: Navigating the complexities of Australia’s retail sector
The Fair Work Commission recently shared “The Retail Award covers a higher proportion (11 per cent) of award reliant workers than any other award.” This Award, formally known as the General Retail Industry Award (GRIA), is not only extensive in its coverage but also intricate in its requirements. For payroll professionals, understanding and managing the complexities of the GRIA is essential to ensuring compliance and avoiding the significant penalties associated with non-compliance.
The significance of the GRIA
The GRIA is a fundamental component of Australia’s industrial relations framework, especially within the retail sector. Covering 11% of award workers, it sets out the minimum wages, conditions, and entitlements for employees in the retail industry. Given its wide reaching impact, the GRIA poses significant challenges for payroll professionals, who must ensure that all aspects of payroll, such as wages, overtime, penalty rates, and other entitlements, are accurately calculated and in full compliance with the Award’s provisions.
The necessity of specialised payroll training
The complexities of the GRIA have tripped up many retail employers, both large and small. Fair Work Australia has shown a particular interest in the retail industry, conducting numerous investigations and audits that have revealed widespread issues with compliance. This is why it is crucial for all payroll employees working within the retail sector to undergo specific training on the GRIA.
Australian Payroll Association offers targeted training on the General Retail Industry Award designed to equip payroll professionals with the knowledge and skills needed to navigate the GRIA effectively. This training covers the detailed provisions of the Award, ensuring that payroll professionals can accurately interpret and apply its requirements. By completing this training, payroll professionals can protect their organisations from the risk of non-compliance and the associated penalties.
Compliance: A non-negotiable priority
Compliance with the GRIA is essential, not only to avoid fines but also to maintain a fair and compliant workplace. Fair Work Australia has made it clear that ignorance of the Award’s provisions is no excuse, and the penalties for non-compliance can be severe. Even minor breaches, if repeated across a large workforce, can result in substantial fines and significant reputational damage.
The GRIA’s extensive coverage of 11% of award reliant workers highlights its importance in the Australian retail sector. With Fair Work Australia’s ongoing focus on retail, the risks associated with non-compliance are higher than ever. To mitigate these risks, it is essential for payroll professionals to be thoroughly trained in the GRIA, ensuring they can navigate its complexities with confidence. By investing in GRIA-specific training through the Australian Payroll Association, employers can protect their organisations from costly mistakes and maintain a compliant, fair, and well-managed payroll operation.
Payroll Technology Workshop
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Enrolments open for the Payroll Technology Workshop
Choosing the wrong payroll vendor can be a very costly mistake, both in time and money.? Australian Payroll Association is presenting a workshop on how to successfully procure payroll services and technology
To book your place ont he Click Here.
Australian Payroll Summit - Meet the Speakers
We’re excited to give you a glimpse of the exceptional speakers who will be taking the stage at the Australian Payroll Summit . Their presentations are meticulously crafted to address the latest trends, challenges, and opportunities within the payroll industry, ensuring that you walk away with actionable strategies and a renewed perspective.
?These sessions are designed to spark innovation and inspire meaningful change in your work. Whether you’re looking to deepen your expertise, stay ahead of the curve, or simply gain fresh ideas, our speakers will provide you with the tools and knowledge to achieve this.
Speakers
Anat Hassner | Uniting
Dr. Anat Hassner, Chief People and Strategy Officer at Uniting, will delve into the power of the payroll transformation journey, emphasising the crucial role of People & Culture. Anat will illustrate how a well-executed payroll transformation can transcend mere problem-solving, driving tangible, long-term gains that elevate organisational success.?
Paul Gordon | Catalyze APAC
Paul Gordon, CEO of Catalyze APAC, is set to revolutionise your approach to high-stakes decision-making with his session on "Hard Decisions Made Easy." Paul will introduce his innovative Decision Thinking approach, offering attendees a deep dive into strategies and tools designed to streamline and simplify complex decision processes.
Summit Location: Hilton Sydney, 488 George St, Sydney
Summit Date: 27 September 2024
Summit Tickets: Click Here
Rosters and overtime – General Retail Industry Award
From the first full pay period starting on or after 5 July 2024, the Fair Work Commission has changed the wording in the General Retail Industry Award for overtime for part time employees and rostering.
Rosters
If an employee works 6 days in one week of a 2-week roster cycle, then the employee can only work ordinary hours on a maximum of 4 days in the other week of that cycle.
This means that an employee can work up to 4 days in the first week and 6 days in the second week. Previously, the week of up to 4 days had to follow the week of 6 days. There is no change to the total number of days an employee can work in a fortnight.
Overtime for part-time employees
Part-time employees now get overtime rates if they work outside the spread of ordinary hours in the award.
The spread of ordinary hours under the award hasn’t changed.
Part-time employees get overtime rates if they work:
For additional information - Click Here.
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