Chamber calls for tax change on entitlements
The Peninsula Chamber of Commerce has called for changes to tax laws to help ensure employee entitlements are preserved.
In calling for changes, the Chamber claimed to be standing out from other business and employer organisations in its response to the situation faced by the Newcastle textile workers.
Chamber treasurer and qualified accountant, Mr Derek Britton, said the Chamber believed employee entitlements should have "first charge" over company assets and before other creditors such as banks.
"This should be coupled with tax deductions for leave and other entitlements at the time the provision is made," he said.
"This would provide an incentive for employers to make advance provisions.
"At present, tax deductions can only be made when the payment is actually made to the employee.
"Ideally, a deduction should be available when provision was made into a trust account, and the business should be allowed to borrow back from the account in some circumstances."
Mr Britton said that such an arrangement would provide flexibility for a business at the same time as protecting employee rights.
"Unfortunately, Government pay-out schemes and insurance do not adequately address the root of the problem," he said.
"The Chamber believes that a proper solution is needed".
The Chamber has written to the Federal Member for Robertson and the State Chamber of Commerce putting forward the Peninsula Chamber's position on protecting employee entitlements.
"I'm sure that all workers would be devastated if they lost their hard eamed entitlements should their employer be forced to close the business," said Mr Britton.
It is imperative that protection was put in place to ensure workers and their families were not financially penalised should this happen, he said.
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