Payroll levy rate increase

A new rate of 2.7% for payroll levy paid by employers on the eligible wages of their employees in the Coal LSL scheme will take effect from 1 July 2023.

Employers must use the new Levy Advice form with the correct levy rate calculation, applying the rate of 2.7% of eligible wages, for the July 2023 levy return due on 28 August 2023. Please refer to the revised Guidance Note on Determining Eligible Wages for Calculating Levy.

If the eligible wages are paid to the employee on or after 1 July 2023 (even if the hours are worked before 1 July 2023), the new levy rate of 2.7% will apply to those eligible wages. If an employer completes their levy returns in line with their pay cycle (i.e. 15 June to 15 July), they do not need to split the levy rate across the return for all eligible wages paid to employees after 1 July 2023. The levy rate of 2.7% would apply.

Employers should ensure individuals and service providers involved with the submission of levies and preparation of reports to Coal LSL are made aware of the change.

The Coal Mining Industry (Long Service Leave) Payroll Levy Regulations 2018 have been replaced with the amended regulations and registered on the Federal Register of Legislation.

Levy rates through time

View the 'levy rates through time' infographic.

Resources:

• Updated Levy Advice form to 31 Dec 2023

• Employer Online Services