The payroll levy is now 2.0% on all eligible wages paid on or after 1 July 2018. This is the first reduction in almost a decade.
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, which determined that the fund was in a strong financial position. This provided us the ability to reduce the levy from 2.7% to 2.0%.
The new Payroll Levy Regulations 2018 were supported by Minister Laundy, our responsible minister at the time, and completed the required parliamentary review.
The change in the levy rate does not impact long service leave entitlements for employees or reimbursements to employers.
Levy rates through time
Our periodic updates provide useful information for employers administering the long service leave legislation for their eligible employees.