Changes to levy rate

PAYROLL LEVY REDUCTION

The payroll levy will be reduced to 2.0%, the first reduction in almost a decade.

Replacement Payroll Levy regulations will be effective from 1 July 2018. In these updated regulations, the levy rate on all eligible wages paid on or after 1 July 2018, will decrease from 2.7% to 2.0%.

The change in the levy rate does not impact any long service leave entitlements for employees.

For more information, please read the FAQs below.

In preparation for your July levy return, we will provide more detailed information and examples to assist in the transition to the new regulations.

 

‚ÄčLEVY RATES THROUGH TIME

 

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FREQUENTLY ASKED QUESTIONS

  • Very simply, our fund is in a positive and sustainable financial position.

    To ensure fund sufficiency, every three years we seek advice from an actuary on the adequacy of the levy rate.

    In 2017, Coal LSL engaged Mercer Consulting (Australia) Pty Ltd (Mercer) to complete the latest review. The review determined that the fund was in a strong financial position, which provided us the ability to reduce the levy from 2.7% to 2.0% from 1 July 2018.

     

  • The levy rate applicable on all eligible employee wages paid on or after 1 July 2018 will be 2.0%.

    The change in levy rate does not impact employee long service leave entitlements. It also does not impact reimbursements to employers.

  • When calculating your July levy (payable 28 August 2018), you will need to change the levy rate to 2.0%. This means your total levy payable should equal 2.0% of eligible wages.  

    As per standard processes, these amounts continue to be recorded on the Levy Advice Form and the total should correspond with the amount paid to Coal LSL.

    How you make this change is dependent on your business. In some cases, this may mean updating systems where the levy is automatically calculated. In other cases, this may mean training for staff who calculate levy payments.

    In preparation for your July levy return, we will provide more detailed information and examples to assist your business in this transition.

  • No. The reduced levy rate is applicable for eligible wages paid on or after 1 July 2018. It is not based on when you submit payment to Coal LSL.

    For example:

    The June levy is due on 28 July.
    The percentage used to calculate the June levy payable is 2.7%.

    The July levy is due on 28 August.
    The percentage used to calculate the July levy payable is 2.0%.

    In this example, both levy payments are made to Coal LSL after 1 July 2018. The reduced rate is applicable to the July levy because the updated regulations come into effect from 1 July 2018.

  • We recommend everyone involved with preparing information for Coal LSL is aware that the levy is being reduced. Depending on your business, this could include HR, payroll, accounts and/or administrators.

    To receive this information, please enter your details in the ‘Join our mailing list’ form above.

  • We will provide regular updates throughout the process to remind and assist you to make this change.

  • The regulations have been provisionally approved, subject to a review period in both Houses of Parliament. This is called a parliamentary review process and will be completed after 15 sitting days in both Houses of Parliament.

    The new regulations will complete the required parliamentary period and be effective from 1 July 2018.

    If there are any changes to this, we will communicate with you.

  • The new regulations will take effect from 1 July 2018. The first levy to be affected is your July levy, which is due 28 August.