Over the last week, we have been, like you are, keeping a keen eye on the advice being handed down by government agencies, especially in relation to childcare, school closures and healthcare.
There is no denying it, these are uncertain times and official advice is changing rapidly regarding our way of life. As it stands, all businesses are preparing to adhere to the new shut down regulations except for essential services. We have been receiving a number of questions pertaining to nanny services being considered essential.
Continue reading COVID-19 – Nannies an essential service?
The Fair Work Commission has lifted the wage by 3.5 per cent, which will increase the hourly rate to $18.93 for more than 2 million people.
Source: Sydney Morning Herald Fair Work umpire rules minimum wage to rise by $24.30 a week 1st June 2018
The Fair Work Commission has announced a 3.3% increase to minimum wages. The increase will apply from the first full pay period starting on or after 1 July 2017.
The new national minimum wage will be $18.29 per hour for a permanent employee 21 year and over and $22.86 for a casual employee. This applies to all domestic staff employed through a WPN or ABN everywhere but WA.
In WA, as at 1st July 2016 ( no increase has been released yet) its $18.23 for a permanent and $21.88 casual employee.
New tax rates will apply from 1 January 2017
From 1 January 2017 tax rates are changing for working holiday makers who hold 417 and 462 visas. These rates are known as working holiday maker tax rates.
What you need to do
If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:
› must register with with the ATO to withhold at the working holiday maker tax rate
› visit border.gov.au/vevo to check your worker has a 417 or 462 visa using the Visa Entitlement Verification Online service
› must withhold tax at 15% on income up to $37,000 and apply foreign resident tax rates on income over $37,000.
What happens next
The working holiday tax rates only apply to income earned from 1 January 2017.
If you currently employ working holiday makers you’ll need to issue two payment summaries this year:
› one for the period to 31 December 2016
› a second for any period to 30 June 2017.For more information go to the ATO website
Date: 9th November 2016
A Working with Children Check is mandatory in Australia and early childhood providers must fulfil the requirements of the state/territory they are employed in. Reputable babysitting agencies will have policies in place to ensure employees undergo WWCCs and background checks – which protect both the children in care and the agency from future issues.
Continue reading Working With Children Checks
Source: Dept of Education & Training
Date: Tuesday 21 June 2016
The Child Care Subsidy builds on the Productivity Commission’s recommendations and will make the system simpler, more affordable, more flexible and more accessible for families.
From July 2018, the Child Care Subsidy will replace the Child Care Benefit and the Child Care Rebate with a single, means-tested payment to better support families with access to affordable child care.
Family eligibility for the Child Care Subsidy will be subject to a three-step activity test, more closely aligning the hours of subsidised care with the hours of work, training, study or other recognised activity undertaken, and providing for up to 100 hours of subsidy per fortnight.
Families earning $65,710^ or less will receive a subsidy of 85 per cent of the actual fee paid (up to an hourly fee cap). For family incomes above $65,710^, the subsidy tapers down to 20 per cent when family income reaches $340,000^ or more.
Families on incomes below $65,710^ a year will be able to access 24 hours of subsidised care per fortnight without having to meet the activity test.
More information to support families and services to adapt to the new system will be available before the changes come into effect in July 2018.
Source: ABC News
Date: 12 July 2016
A Queensland restaurant operator who claimed a worker ate too much food and used too much air conditioning has been fined $21,000 after refusing to reimburse the underpaid staffer.
The owners of Fire and Stone restaurant at Tangalooma Island Resort on Moreton Island illegally paid a Chinese backpacker $10 an hour in 2014.
At the time the worker was aged in her 20s, spoke limited English and was in Australia on a working holiday visa.
She contacted the Fair Work Ombudsman which found she was underpaid $1,577 in just 19 days, having received less than half the legal rate of pay for a casual hospitality worker.
Continue reading Fine issued to an employer for underpaying backpackers
Source: ATO Website
Date: 11 July 2016
Stating in a written agreement that your worker is a contractor doesn’t mean they are, nor does it protect you from potential penalties for getting it wrong. This is a myth.
The fact is, if your worker is legally an employee, having a written agreement will not:
- override the employment relationship or make the worker a contractor, or
- remove your tax and super obligations.
Continue reading ATO Newsletter – Employee or contractor myths – written agreements
The Fair Work Commission has announced a 2.4% increase to minimum wages. The increase will apply from the first full pay period starting on or after 1 July 2016.
The new national minimum wage will be $17.70 per hour for a permanent employee 21 year and over and $22.13 for a casual employee. This applies to all domestic staff employed through a WPN or ABN everywhere but WA.
In WA, as at 1st July 2015 ( no increase has been released yet) its $17.89 for a permanent and $21.47 casual employee.
Whether a nanny is a contractor or employee can be complicated, and ultimately only a court can determine if someone is a contractor or employee. Both the ATO ( Australian Taxation Office) and the FWO ( Fair Work Ombudsman) FWO website has some general information on the differences between independent contractors and employees , including factors that should be weighed up to consider whether someone is an employee or independent contractor.
Continue reading What is a genuine independent contractor?