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)

 

 

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.

 

 

 

 

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Printed by the authority of the Industrial Registrar.