Tuesday 6 January 2015

Penalty Rates And Their Role In Australia’s Cash Economy

Amid the ongoing debate over the future of penalty rates, a subtle but important issue also deserves to be examined: their impact on Australia’s “cash economy”.
The Fair Work Commission is currently reviewing minimum wage conditions across more than 200 awards, while the Productivity Commission is also reviewing penalty rates as part of a review of workplace relations.
But as well as scrutinising low-paid workers payment entitlements, employer behaviours and attitudes should also be in the spotlight – particularly where exploitation of the cash economy occurs.
Penalty rates have significant impacts on employees in sectors such as retail, hospitality, cleaning, construction, home maintenance and aged and child care industries. In the retail and hospitality industries alone, more than 1.1 million workers regularly work on weekends.
Some businesses offer wages to some or all of their employees as “cash-in-hand” which, according to the Australian Tax Office, could be “associated with a business deliberately using cash transactions to hide their income to avoid paying tax, or to avoid meeting tax, super or other responsibilities for their employees”. Penalty rates are included in the “other responsibilities” or entitlements as indicated by the ATO.
This news story is reprinted from theconversation.com
Read more details on Taxation Accountants.

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