PUBLIC HEALTH SERVICE EMPLOYEES SKILLED
TRADES (STATE) AWARD (INCORPORATING THE AMBULANCE SERVICE OF NSW SKILLED
TRADES)
INDUSTRIAL RELATIONS
COMMISSION OF NEW SOUTH WALES
Application by the Health Administration Corporation.
(No. IRC 3792 of 2002)
Before Commissioner
McLeay
|
17 July 2002
|
VARIATION
1. Insert in
alphabetical order in clause 1, Index, of the award published 21 June 2002 (334
I.G. 557) the following new clause number and subject matter:
6B. Salary Packaging
2. Insert after
clause 6A, Salary Sacrifice to Superannuation, the following new clause:
6B. Salary Packaging
1. By agreement
with their employer, employees may elect to package a portion (but no more than
50%) of their salary in accordance with this clause, to obtain a range of
benefits as set out in the NSW Health Services Salary Packaging Policy and
Procedure Manual, as amended from time to time. Such election must be made
prior to the commencement of the period of service to which the earnings
relate. Where an employee also elects to salary sacrifice to superannuation
under this award, the combined amount of salary packaging/sacrificing shall not
exceed 50% of salary.
(NOTE:
So long as the Ambulance Service of NSW is not a Public Benevolent Institution
as determined by the Australian Taxation Office, this clause does not apply to
employees of the Ambulance Service of NSW.)
2. Where an
employee elects to package a portion of salary:
(a) Subject to
Australian taxation law, the packaged portion of salary will reduce the salary
subject to appropriate PAYG taxation deductions by the amount of that packaged
portion.
(b) Any allowance,
penalty rate, overtime payment, payment for unused leave entitlements, weekly
workers' compensation, or other payment other than any payment for leave taken
in service, to which an employee is entitled under this award or statute which
is expressed to be determined by reference to an employee's salary, shall be
calculated by reference to the salary which would have applied to the employee
under this award in the absence of any salary packaging or salary sacrificing
made under this award.
(c) "Salary"
for the purpose of this clause, for superannuation purposes, and for the
calculation of award entitlements, shall mean the award salary as specified in
clause 6, Wages, and which shall include "approved employment
benefits" which refer to fringe benefit savings, administration costs, and
the value of packaged benefits.
3. The salary
packaging scheme utilises the Public Benevolent Institution (PBI) taxation
status, which provides for a fringe benefits tax exemption cap of $17,000 per
annum. The maximum amount of fringe benefits-free tax savings that can be
achieved under the scheme is where the value of benefits when grossed up, equal
the fringe benefits exemption cap of $17,000. Where the grossed up value
exceeds the cap, the employer is liable to pay fringe benefits tax on the
amount in excess of $17,000, but will pass this cost onto the employee. The
employer's share of savings, the combined administration cost, and the value of
the package benefits, are deducted from pre tax dollars.
4. The parties
agree that the application of the fringe benefits tax exemption cap and the PBI
status of NSW Health Services are subject to prevailing Australian taxation
laws.
5. If an
Employee wishes to withdraw from the salary packaging scheme, the employee may
only do so in accordance with the required period of notice as set out in the
Salary Packaging Policy and Procedure Manual.
6. Where an
employee ceases to salary package, arrangements will be made to convert the
agreed package amount to salary. Any costs associated with the conversion will
be borne by the employee, and the employer shall not be liable to make up any
salary lost as a consequence of the employee's decision to convert to salary.
7. Employees
accepting the offer to salary package do so voluntarily.
Employees are advised to seek independent financial advice
and counselling to apprise them of the implications of salary packaging on
their individual personal financial situations.
8. The employer
and the employee shall comply with procedures set out in the NSW Health
Services Salary Packaging Policy and Procedure Manual as amended from time to
time.
3. This
variation shall take effect on and from 17 July 2002.
J. McLEAY, Commissioner.
____________________
Printed by the authority of the Industrial Registrar.