Victorian native timber workers will receive more money following a class ruling by the Australian Taxation Office (ATO). It comes as Victorian Minister for Agriculture Rose Spence welcomed the ATO’s decision, which sets a national precedent in tax treatment for workers receiving redundancy payments.
“We advocated for this decision, making sure our native timber workers can access the full amount of the Government’s Top-Up Payments and get the financial support they need,” Minister Spence said. “We continue to support native timber workers throughout the forestry transition and help communities plan for the future.”
The ruling means the Victorian Government’s Top-Up Payment provided as part of the Victorian Forestry Worker Support Program can be classed as a genuine redundancy, meaning workers now benefit from tax-free and concessional rates.
The Government’s Top-Up Payments have already helped 187 workers following the end of native timber harvesting in Victoria. The ruling also extends tax-free and concessional treatment to casual, piece-rate, and seasonal employees who have received Government redundancy payments.
The ruling, now available on the ATO website, provides further details about how the tax will be applied to other Victorian Forestry Worker Support Program payments, including Relocation Reimbursement and Hardship Payments. Employees can take the ruling to their accountant, who can use it for the current or previous financial years.
According to Minister Spencer, the Victorian government will continue to support forestry workers through the transition away from native timber harvesting with a $1.5 billion investment, including worker support services and investments to support the transition to plantation timber.
More than 1,400 workers and family members have registered for the Worker Support Program, which has provided over 3,192 training and education activities approved for workers and their families. The Victorian Forestry Worker Support Program supports eligible native timber employees, supply chain employees, and their families as they navigate the end of native timber harvesting in state forests.
- For more information, visit vic.gov.au/forestry or call ForestWorks on 1800 177 001.
