Breach of Meal Break Explained (System Default Pay Rate)

Aimee Slatter

Sep 26, 2024

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🎯 The reporting of payments for Breach of Meal Break has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Breach of Meal Break continues to be reported under Gross.

🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.

Breach of Meal Break is applicable when the Payee has not been able to take their unpaid Meal Break within the required number of hours since commencing their shift, or at the time agreed to.

For example, under the following awards, Payees are entitled to be paid 200.00% of their ordinary hourly rate for the time they work until they get a meal break, if the meal break is taken later than 5 hours after starting work, or at the time agreed to;

Breach of Meal Break uses the Rate Per Hour set in the Payee Master File multiplied by 2 (200.00%) and Leave Entitlements are applicable, provided the rules have been configured. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments), Taxable and Ordinary Time Earnings (OTE).