4.3.5.20 Keeping records of PPL funding amounts received & PLP paid

Introduction

Employers are required to make, and keep for 7 years, records of a kind prescribed by the PPL Rules in relation to each person for whom an employer determination (1.1.E.60) for the employer comes into force, relating to:

  • the PPL funding amounts received for the person, and
  • the instalments paid to the person.

The PPL Rules prescribe information to be included in those records as:

  • the name of the person (claimant) to whom the PPL payment is made, and
  • the PPL funding amounts received by the employer for the person and the PPL days and/or flexible PPL days for which the funding amounts were paid to the person, and
  • the date each PPL payment was paid to the person and the period to which it relates, and the gross amount of each PLP payment paid to the person and a statement identifying the payment as PLP, and
  • if no other payments were made by the employer to the person on that day for the period, the net amount of the payment and the amount of income tax withheld from the payment, and
  • if other payments were made by the employer to the person on that day for the period, the total net amount paid to the person for the period and the total amount of income tax withheld from the total gross amount, and
  • the total amount deducted from each PPL payment to the person that relate to deductions authorised by the person and deductions relating to child support.

A record kept for the purposes described above must be in a legible form and in the English language, it must be accessible to a person exercising compliance powers in accordance with the PPLAct.

To satisfy the requirements in relation to PPL funding amounts, employers may keep records of the payment advices they receive from Centrelink with each payment of PPL funding amounts that are transferred from Centrelink to the employer's bank account.

In most cases, employers will satisfy the requirements in relation to PLP paid to employees by using existing salary and wage record keeping processes (e.g. payroll records) to keep records of PLP instalments paid to, or in relation to, each person.

Employer records must be sufficiently comprehensive and connected with the relevant employee so that the records indicate whether PPL funding amounts received in relation to a person reconcile with instalments of PLP and tax and any other deductions made from payments of instalments of PLP to the person.

A failure by an employer to comply with these requirements may result in a financial penalty.

Act reference: PPLAct section 81 Keeping records

PPL Rules Part 4 Payment of PLP

Policy reference: PPL Guide 7.2 Compliance

Last reviewed: 10 May 2021