1. Recent changes to Commission-only employment
From 6th August 2020 an employer is permitted to disregard some or all of the months of May, June, July, August, September and October 2020 from the calculation of the MITA for the purposes of the compulsory annual review of employees on commission-only.
Where months are disregarded, the MITA can be reduced in proportion to the number of months excluded.
Between 6th August and 1st November it will be unlawful for any salesperson (who isn’t currently on the arrangement) from being employed on commission-only.
2. Increases to base Rates of Pay
Base rates of pay have been increased by 1.75% - effective first pay period on or after the 1st November 2020.
Each year REEF produces a Rates of Pay Guide which provides our members with the new base rates of pay and allowances for all employees under the Real Estate Award and the Clerks Private Sector Award.
3. Do I tax car allowances & the tax exemption for REEF members?
Each year REEF applies for an exemption from the Australian Taxation Office so that employers do not have to apply PAYG tax to the motor vehicle allowances paid to employees.
The exemption is given by the ATO covering all REEF members on the proviso that the recipients of the allowance must be able to fully substantiate all amounts claimed as deductions against the allowance in their personal income tax return.
Non-REEF members must apply full PAYG tax against all allowances paid to employees (including motor vehicle allowance payments).
From 6th August 2020 an employer is permitted to disregard some or all of the months of May, June, July, August, September and October 2020 from the calculation of the MITA for the purposes of the compulsory annual review of employees on commission-only.
Where months are disregarded, the MITA can be reduced in proportion to the number of months excluded.
Between 6th August and 1st November it will be unlawful for any salesperson (who isn’t currently on the arrangement) from being employed on commission-only.
2. Increases to base Rates of Pay
Base rates of pay have been increased by 1.75% - effective first pay period on or after the 1st November 2020.
Each year REEF produces a Rates of Pay Guide which provides our members with the new base rates of pay and allowances for all employees under the Real Estate Award and the Clerks Private Sector Award.
3. Do I tax car allowances & the tax exemption for REEF members?
Each year REEF applies for an exemption from the Australian Taxation Office so that employers do not have to apply PAYG tax to the motor vehicle allowances paid to employees.
The exemption is given by the ATO covering all REEF members on the proviso that the recipients of the allowance must be able to fully substantiate all amounts claimed as deductions against the allowance in their personal income tax return.
Non-REEF members must apply full PAYG tax against all allowances paid to employees (including motor vehicle allowance payments).