Family-leave

Paid Family & Domestic Violence Leave From August 1

by Advice

Paid family and domestic violence leave (FDVL) kicked off for large employers on February 1. Now it’s time for small businesses to get on board.

Ten days’ paid family and domestic violence is a significant new entitlement for employees.

The obligation to provide paid family and domestic violence leave applies:

  • from 1 February 2023, for employees of businesses that are not small businesses (i.e. on 1 February 2023, the business employed 15 or more employees); and
  • from 1 August 2023, for employees of small businesses (i.e. on 1 February 2023, the business employed fewer than 15 employees).

What is Family and Domestic Violence leave?

Paid family or domestic violence leave will be available in the event that the employee needs to do something to deal with the impact of the family and domestic violence and it is impractical for them to do it outside their ordinary hours of work.

For example, making arrangements for their safety or the safety of a family member (including relocation), attending urgent court hearings, or accessing police services.

Family and domestic violence – What is it?

A family or domestic violence incident is defined as violent, threatening, or abusive behaviour directed at an employee by a former or current intimate partner, a household member, or a close relative in an effort to coerce or control them.

A close relative of an employee is considered the following:

  • Spouse or former spouse
  • Current or former de facto partner
  • Child
  • Parent/s
  • Grandparent
  • Grandchild
  • Sibling
  • Family members of an employee’s current or former partner, including siblings, children, parents, and grandparents
  • Individuals who are related to the employee according to Aboriginal or Torres Strait Islander kinship rules.

The following types of behaviour are examples of family and domestic violence:

  • Financial abuse
  • Stalking
  • Emotional abuse
  • Sexual assault
  • Physical violence
  • Controlling behaviour

When does Family and Domestic Violence Leave apply?

Employees (including part-time and casual employees) can take this paid leave if they need to do something to deal with the impact of family and domestic violence. For example:

  • Making arrangements for their safety or the safety of a close relative (including relocation)
  • Attending court hearings
  • Accessing police services
  • Attending counselling sessions, medical appointments, financial consultations, or legal consultations.

Who is entitled to Paid Family and Domestic Violence Leave?

Employees covered by the Fair Work System, including full-time, part-time, and casual employees, are entitled to ten days of paid leave for domestic and family violence. For every 12 months of employment, employees will receive ten days paid for family and domestic violence; the entitlement is provided up-front at the start of each 12-month period. The leave does not accumulate like annual leave.

Employees who started employment on or after 1 February 2023 are entitled to the full 10 days from their starting day.

How is pay calculated for Family and Domestic Violence Leave?

The type of employment determines the amount of pay for paid family and domestic violence leave.

Both part-time and full-time employees are entitled to receive full pay for the hours they would have worked if they did not need to take family or domestic violence leave.

Casual employees are paid their full pay rate for the hours they were scheduled to work if they need to take leave due to family or domestic violence.

Family and Domestic Violence Leave pay slip data and record keeping

The employer must ensure that any information regarding paid family and domestic violence leave balances or leave taken is not included in payslips. This safety measure aims to reduce any risk for employees that need to use their family and domestic violence leave.

Employers must keep a record of all employees’ leave balances and leave taken for Family and Domestic Violence.

What are the employee’s obligations when taking Paid Family and Domestic Violence Leave?

As soon as practicably possible, the employee should notify their employer they are taking family and domestic violence leave and how long they expect to be away from work. The notification can be after the employee has taken the leave.

Employers may request evidence that shows the leave taken was to deal with the impact of family or domestic violence and that it was not feasible to manage this outside of working hours. Evidence can be documentation issued by the police, a court of law, family support services or a statutory declaration.

The employer can only use the information provided to determine whether the employee is entitled to family and domestic violence leave.

Key takeaways:

The Paid Family and Domestic Violence Leave legislation key points:

  • On 1 February 2023, the new paid family and domestic violence leave is available to employees for businesses with at least 15 employees or over.
  • The start date for paid family and domestic violence leave for employers with less than 15 employees is 1 August 2023.
  • Over 12 months, full-time, part-time, and casual employees can take up to 10 days of paid family and domestic violence leave.
  • The leave is pro-rated for part-time or casual employees.
  • No matter how many hours employees work per week, they are entitled to 10 days of family and domestic violence leave.
  • Employees who started employment on or after 1 February 2023 are entitled to the full 10 days from their starting day.
  • The paid family and domestic violence leave renewal is on the employee’s start date anniversary, not on the 1 February every year.
  • The 10-day entitlement does not accumulate year after year, like annual leave.
  • An employee’s pay slip must not contain any information regarding paid family and domestic violence leave as of 1 February 2023.

For more information on paid family and domestic violence leave, visit fairwork.gov.au.

A8-Group-1

Introduction Of Deduction For Skills Training & Technology Costs

by Advice

120% deduction for skills training & technology costs

This was originally announced in 2022 budget by the Morrison Government. It has been adopted by the current Government and on the 21st June 2023, the legislation to allow these measures was finally passed.

Technology Investment Boost

The Technology Investment Boost is a 120% tax deduction for expenditure incurred on business expenses and depreciating assets that support digital adoption, such as portable payment devices, cyber security systems, or subscriptions to cloud-based services. 

The boost is capped at $100,000 per income year with a maximum deduction of $20,000. 

The $20,000 bonus deduction is not paid to the business in cash but is used to offset against the assessable income. If the company is in a loss position, then the bonus deduction would increase the tax loss. The cash value to the business of the bonus deduction will depend on whether it generates a taxable profit or loss during the relevant year and the rate of tax that applies. 

Skills and Training Boost

The Skills and Training boost is a 120% tax deduction for expenditure incurred on external training courses provided to employees. This incentive will not apply to sole traders and independent contractors. 

External training courses will need to be provided to employees in Australia or online and delivered by training organisations registered in Australia. 

The training must be necessarily incurred in carrying on a business for the purpose of gaining or producing income. That is, there needs to be a nexus between the training provided and how the business produces its income. 

Note that the additional deduction relating to the 2021/22 financial year is to be claimed in the 2023 tax returns.  

If you require further information on any of these measures, please do not hesitate to contact our office on (07) 3367 3366.

A8-Group-2

Changes for Business From 1 July, 2023

by Advice

From 1st July 2023, there are a number of key changes to come into effect which will impact your business and employees.

SUPER GUARANTEE RATE RISE 

Don’t forget that the super guarantee rate increases to 11% from 1 July 2023. 

This means you need to calculate super contributions at 11% for your eligible workers for payments of salary and wages you make from this date. 

Your super contributions for the current quarter (ending 30 June, due by 28 July 2023) are still calculated at the 10.5% rate for payments of salary and wages made prior to 1 July.  

WAGES GO UP 

Wage increases kick in on 1 July, following a ruling from the Fair Work Commission. 

For employees who aren’t covered by an award, the minimum wage will go up from 1 July to $882.80 per week, or $23.23 per hour, and will apply from the first full pay period starting on or after 1 July 2023. 

For employees covered by an award, minimum award wages will increase by 5.75%, also applying to the first full pay period starting on or after 1 July 2023.  

PAID PARENTAL LEAVE CHANGES 

From 1 July, amendments to the Paid Parental Leave Scheme will come into effect.  

Notably, the Dad and Partner Pay (DAPP) scheme, which currently provides up to two weeks of paid leave, will now be combined with the 18-week paid parental leave scheme. This means eligible parent couples or single parents can share their 20 weeks of leave – aimed at greater gender equity in parental caring responsibilities. 

There are other changes, too, such as the whole 20 weeks of leave of instalments can be received flexibly in multiple blocks within 24 months of the child’s birth or adoption date, removing the previous requirement of 12 weeks in one continuous period. 

Also, note that employees now have greater rights to request an additional 12 months of leave (24 in total) – and employers need to show reasonable business grounds on which to refuse.

DOMESTIC VIOLENCE LEAVE INTRODUCED 

This entitlement has been in place since 1 February 2023 for employers with 15 or more employees.  For smaller employers who employ less than 15 employees, this entitlement will operate from 1 August 2023. 

Employees will be entitled to 10 days of paid family and domestic violence leave (FDVL) per year.  

Paid family and domestic violence leave is quite a sensitive topic, and there need to be procedures in place – for everything from how the HR or manager handles requests to the privacy issues around how it gets recorded on a pay slip.  

PENSION AGE AND ELIGIBILITY INCREASES 

For those businesses employing older Australians, it’s worth noting that from 1 July, the pension age will be raised to 67 for those born on or after 1 January 1957. 

Not only that but asset and income eligibility tests will also be revamped, which means singles can earn $204 a fortnight and couples $360 a fortnight, before losing their full pension.  

ENERGY BILL RELIEF ON ITS WAY 

With soaring power bills contributing significantly to business operating costs, $650 in bill relief is on its way from July for small businesses. 

To be eligible, your business must be on a separately metered business tariff with your electricity retailer and your annual consumption must be less than 100MWh.  If you run a business from home, you probably won’t qualify. 

You don’t need to do anything. If you are eligible, you will receive bill relief on your electricity bills from 1 July 2023.  

Note these are Queensland numbers.  There are different thresholds and bill relief for each state. 

If you require further information on any of these measures, please do not hesitate to contact our office on (07) 3367 3366.

stapled super

Stapled Super Changes

by Advice

Employers get ready – there’ll soon be an extra step involved when it comes to hiring new employees – if they don’t choose a super fund.

You may now need to request their ‘stapled super fund’ details from the ATO.  A stapled super fund is an existing super account of an employee that follows them as they change jobs. This change aims to stop your new employees paying extra account fees for unintended super accounts set up when they start a new job.

You may need to request stapled super fund details when:
•           your new employee starts on or after 1 November 2021
•           you need to make super guarantee payments for that employee, and
•           your employee is eligible to choose a super fund but doesn’t.

What you need to do from 1 November 2021

Step 1: Offer your eligible employees a choice of super fund

You need to give your eligible new employees a Super standard choice form and pay their super into the account they tell you on the form. Most employees are eligible to choose what fund their super goes into.

There is no change to this step of your super obligations.

Step 2: Request stapled super fund details

If your employee doesn’t choose a super fund, you may need to log into the ATO Online services and go to ‘Employee Super Accounts’ to request their stapled super fund details. If you don’t have online access then Activ8 can do this for you.

The ATO will provide your employee’s stapled super fund details after they have confirmed that you are their employer.

If the ATO provides a stapled super fund result for your employee, you must pay your employee’s super using the stapled super fund details they provide you.

In most cases, a request can be made after you’ve submitted a TFN declaration, or a Single Touch Payroll (STP) pay event linking the new employee to your business.  Responses will usually be received through the online portal in minutes.

Step 3: Pay super into a default fund

You can pay into a default fund, or another fund that meets the choice of fund obligations if:

  • your employee doesn’t choose a super fund, and
  • we have advised you that they don’t have a stapled super fund.

Remember, an employer cannot provide recommendations or advice about super to its employees, unless the business is licensed by the Australian Securities and Investments Commission (ASIC) to provide financial advice. Penalties may apply if your business fails to meet the “choice of super fund” obligations.

Full details can be found here on the ATO website.