Coal Mining Industry (Long Service Leave) Payroll Levy Regulations 2018
In ForceCTH
Jurisdiction
Commonwealth
Collection
legislative instrument
Plain English Summary
2/10 complexity
What this regulation does, mechanically
This regulation sets the payroll levy percentage that applies under the Coal Mining Industry (Long Service Leave) Payroll Levy Act 1992 (the Act). The regulation is made under the Act (Reg 3; Reg 5 defines the Act). The single substantive rule in the instrument prescribes a levy equal to 2.7% of eligible wages (Reg 6).
The 2.7% rate applies to eligible wages paid on or after 1 July 2018 (Reg 7).
An amendment to this instrument made by Schedule 1 of the Coal Mining Industry (Long Service Leave) Payroll Levy Amendment Regulations 2023 is stated to apply in relation to eligible wages paid on or after 1 July 2023 (Reg 8). The text supplied does not say what Schedule 1 changed, only that the amendment’s application date is 1 July 2023.
Who is affected and who decides
The levy applies to "eligible wages paid" (Reg 6). The regulation does not define "eligible wages" itself; that definition is in the Act (Reg 5). Practically, this means the persons or organisations who pay those eligible wages under the Act are the parties that bear the levy obligation.
The percentage and timing are set by this delegated instrument made under the Act (Reg 3). That is, the executive made a regulation that prescribes the percentage authorised by the Act.
Why it matters (costs, incentives and compliance implications)
Direct cost: employers who pay eligible wages must remit an additional charge equal to 2.7% of those wages (Reg 6). That increases labour-related costs for the payers of eligible wages from the stated dates (Reg 7; Reg 8 for the 2023 amendment application).
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Incentives and pass-through: employers facing a 2.7% levy may respond in various ways — for example, absorbing the cost, adjusting contract prices, changing hiring or rostering, or reallocating labour costs. The regulation itself sets the percentage; it does not require or prohibit any particular employer response.
Compliance burden and implementation risk: calculating the levy requires employers to identify "eligible wages" under the Act (Reg 5) and apply the 2.7% rate (Reg 6) for the relevant pay periods (Reg 7; Reg 8). Administrative tasks include payroll calculation, record-keeping and remittance. Accuracy depends on correct application of the Act’s definitions and the timing rules in this instrument.
Bureaucratic discretion and legal framing: this instrument exercises delegated power under the Act to set a percentage (Reg 3). The instrument itself does not set or describe how collected funds are used; that allocation is a matter for the Act and any administrative arrangements under it.
Trade-offs, opportunity costs and scope notes
The regulation converts a statutory authority (the Act) into a concrete levy rate (2.7%) for covered wages (Reg 6). Money paid as the levy is money employers cannot use elsewhere; how that trade-off plays out depends on what the Act provides for use of the levy receipts.
The instrument is short and mechanically specific (one percentage and application dates). However, its practical effect depends on external material (the Act’s definition of "eligible wages" and the content of Schedule 1 to the 2023 amendment, which is not included here). This creates a dependency: to determine total cost, coverage and any change introduced in 2023, a reader must consult the Act and the 2023 amendment instrument.
Source citations: Reg 3 (authority), Reg 5 (definition reference to the Act), Reg 6 (prescribed percentage), Reg 7 (application from 1 July 2018), Reg 8 (application of the 2023 amendment from 1 July 2023).