FIFO workers & SGC

Question

Hi,&nbsp;&nbsp;From the Mining Industry Award MA000011, it states that the ordinary hours (38) are to be multiplied by the number of working and non working days in the cycle (21), which is then divided by (7) to determine ordinary time hours in a work cycle.&nbsp;&nbsp;Calculating the equation (38 x 21)/7 equals 114 per cycle.&nbsp;Based on working 24/84/60 hours over 3 pay weeks (ie 2 x 84 hours = 168 hours), how can I setup SGC deductions to ensure compliance with the Award?&nbsp;Do I create a new super deduction rate of 7.47% on all hours based on SGC applicable only on 114 hours (114 hours divided by 168 hours = 0.0747)?&nbsp;&nbsp;Any other suggestions as to how to calculate SGC would be appreciated.&nbsp;&nbsp;Regards&nbsp;&nbsp;Gary&nbsp;

earl_hd · Answer

Hi GaryOo ,Thanks for your post. In this scenario, we recommend reaching out to your accountant for an accurate solution. However, to give you an idea, to comply with the Award, calculate the ordinary hours per cycle as (38×21)/7=114(38 	imes 21) / 7 = 114(38×21)/7=114. For 168 hours worked over 3 pay weeks, determine the proportion of ordinary hours as 114/168=0.6786114 / 168 = 0.6786114/168=0.6786. Apply the SGC rate (11%) to this proportion, resulting in an SGC deduction rate of approximately 7.47% on all hours worked. This ensures compliance with the Award's SGC deduction requirements.Feel free to post again, we're happy to help!Regards,Earl

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FIFO workers & SGC

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