Commonwealth Numbered Regulations - Explanatory Statements

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COAL MINING INDUSTRY (LONG SERVICE LEAVE) PAYROLL LEVY REGULATIONS 1993 NO. 138

Statutory Rules 1993 No. 138

(Issued by authority of the Minister for Industrial Relations)

Coal Mining Industry (Long Service Leave) Payroll Levy Act 1992

Coal Mining Industry (Long Service Leave) Payroll Levy Regulations

In 1992 the Government passed a package of legislation to reform the funding of long service leave in the black coal mining industry in New South Wales, Queensland, Western Australia and Tasmania. The Acts included in that package were:

•       the Coal Mining Industry (Long Service Leave Funding) Act 1992;

•       the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992;

•       the Coal Mining Industry (Long Service Leave) Payroll Levy Act 1992; and

•       the States Grants (Coal Mining Industry Long Service Leave) Amendment Act 1992.

The legislative package will terminate the present excise funding arrangements and implement a new industry-managed fully funded long service leave scheme.

The only parts of the package that have been proclaimed to commence are sections 3 to 34, 36 to 43 and 50 to 55 of the Coal Mining Industry (Long Service Leave Funding) Act 1992 (the Funding Act). These provisions commenced on 4 September 1992. The remainder of the package will automatically commence on 27 June 1993. Pursuant to section 4 of the Acts Interpretation Act 1901 the Governor-General may make regulations under the Coal Mining Industry (Long Service Leave) Payroll Levy Act 1992, notwithstanding that it has not commenced, providing that the regulations do not commence prior to the date of commencement of the Act.

Pursuant to section 4 of the Levy Act, from 27 June 1993, employers in the black coal mining industry will be liable to pay a levy on eligible wages paid to eligible employees. Section 5 of the Levy Act provides that the rate of levy is the prescribed percentage of eligible wages.

Eligible wages are defined in the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992 to be remuneration and allowances (including production related bonuses) paid to eligible employees by virtue of their employment within the black coal mining industry, other than overtime and other remuneration or allowances to which the employee is not entitled during a period of long service leave. Eligible employees are the class of employees, within the black coal mining industry, defined in section 4 of the Funding Act.

Subsection 8(1) of the Levy Act provides that the Governor-General may make regulations prescribing a percentage for the purposes of section 5. Subsection 8(2) provides that before making a regulation under subsection (1) the Governor-General is to consider any advice given to the Minister by the Coal Mining Industry (Long Service Leave Funding) Corporation (the Corporation) under the Funding Act.

Included in the provisions of the Funding Act that have commenced are sections 6 and 7. Section 6 establishes the Corporation. Under section 7 the Corporation is required to advise the Minister as to the rate of levy to be imposed. After commissioning an actuarial review the Corporation has recommended to the Minister that the rate of levy be set at five per cent.

The regulation formally sets the rate of levy accordingly.

The regulation commences on the same day that the Levy Act commences.