Changes to levy rate

PAYROLL LEVY REDUCTION

The payroll levy has been reduced to 2.0%, the first reduction in almost a decade (refer to new Payroll Levy regulations). 

In these regulations, the levy rate on all eligible wages paid on or after 1 July 2018, has decreased 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.

 

 

‚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 new payroll regulations are supported by Minister Laundy and have completed the required parliamentary review. 

     

     

  • The levy rate applicable on all eligible employee wages paid on or after 1 July 2018 is now 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.


  • 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 now 2.0%. Depending on your business, this could include HR, payroll, accounts and/or administrators.

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  • The new regulations are now in effect. All eligible wages paid on or after 1 July 2018 need to be calculated at 2.0%.