IR Q&A issue 3
Q: I feel like the good guys are often penalised, especially when it comes to taxes and keeping up with super obligations. Is there anything being done to protect honest businesses like mine?
A: It is true, from time to time we hear stories where a business may be doing the wrong thing in relation to the payment of those compulsory obligations, such as tax and super. The ATO have a number of different ways of protecting businesses - the current program includes visiting businesses to ensure that they are aware of the obligations and where to find tools and assistance to help ensure obligations are met. Small business workshops run by the ATO are also held regularly in the ACT. For further information about what is being done to protect honest businesses can be found here.
Q: How many hours do my employees need to work to be entitled to an RDO?
A: In order for your employees to be eligible to receive a paid RDO, they will be required to work 8 hours per day for 19 days. The RDO will usually be on the twentieth day which is the paid day off.
Where you have a part-time employee, RDOs can be accumulated on a pro-rata basis or payment for hours worked instead of accumulating towards the paid RDO.
Q: Can I have an agreement with my carpenter to have an all-inclusive hourly rate of pay?
A: Yes, you can in some circumstances. Clause 7 of the Award provides that the following can be varied by agreement:
* Arrangements for when work is performed (such as changing the start/finish times, RDOs);
* Overtime and penalty rates;
* Allowances; and
* Leave loading.
This needs to be a written agreement signed the parties detailing the terms to be varied and how the agreement results in the employee being better off overall under the agreement than what they would be under the Award.
If you would like to chat about whether this might be suitable for you, please contact: