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My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.
Tips are paid because the patron wants to reward the staff. So in reality it is paid to be given to the staff.
There is no law though that covers this.
In reality I agree nothing should go to the restaurant. They are meant to be a reward for the good service provided to the patron by the staff.
I am not sure where the 15% kept by the restaurant comes from.
There is no fact sheet I am sorry to say.
If this is policy and the contracts of the employees say this in them when they sign you can do it.
But if you do not have it then the employees are entitled to them.
The ATO simply says if you receive tips you have have to declare them as they are income and you have to pay tax on them.
There is nothing about you withholding them.
the 15% you keep is taxable in your hand as income.
Even the award does not mention them
But they are paid to reward the service of the staff and the staff are entitled to it.
But it is your call on how you have employed them and the terms in the contract.
i hope this makes sense?
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