State offers tax rebates
5 September, 2018, 11:21 am
GOVERNMENT is giving tax rebates to companies who pay paternity leave or family care leave in an effort to reduce the impact on businesses. T
his was the word from Employment, Industrial Relations and Productivity Minister Jone Usamate to employers in Nadi yesterday.
During consultations with business owners, Mr Usamate said while employees were benefiting from a host of new leave entitlements, Government’s tax rebates would ensure there was minimal impact on employers.
“Government knows that the issue of family care, paternity leave — all these things is extra expense for the company,” he said.
“It means you are paying people when they are not working, so it’s going to affect your bottom line. “So in order to give some assistance to employers for paying for the amount of days people go on family care or paternity care leave, you are able to claim a tax rebate of 150 per cent of the money you pay for their salary.
“For example, if you pay someone $500 a week and they take paternity care leave or family care leave, when you file your taxation, you will be claiming as if you had paid that person $750 a week.”
“So that will reduce your profit margin and tax on your profits will reduce.”
Beginning January 1,2019, workers can take up to five days family care leave to look after someone who is sick at home. Likewise, male workers will be able to take up to five days a year paternity leave if their wife or de facto partner has a baby.