Crown Employees (Education Employees Department of Corrective Services) Consent Award 2006

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by New South Wales Teachers Federation, Industrial Organisation of Employees.

 

(No. IRC 263 of 2007)

 

 

VARIATION

 

1.          Insert in numerical order in clause 1, Arrangement of the award published 28 July 2006 (360 I.G. 371), the following new clause number and subject matter, and renumber existing clauses accordingly:

 

5A.      Salary Packaging Arrangements, including Salary Sacrifice to Superannuation

 

2.          Insert after clause 5 Salaries, the following new clause 5A:

 

5A.      Salary Packaging Arrangements, including Salary Sacrifice to Superannuation

 

5A.1.   The entitlement to salary package in accordance with this clause is available to:

 

5A.1.1.             permanent full-time and part-time employees;

 

5A.1.2.             temporary employees, subject to the Department’s convenience; and

 

5A.1.3.             casual employees, subject to the Department’s convenience, and limited to salary sacrifice to superannuation in accordance with sub clause 5A.7.

 

5A.2.   For the purposes of this clause:

 

5A.2.1.             "salary" means the salary or rate of pay prescribed for the employee's classification by clause 6, Salaries and Part B - Monetary Rates Table 1 of this Award, and any other payment that can be salary packaged in accordance with Australian taxation law.

 

5A.2.2.             "post compulsory deduction salary" means the amount of salary available to be packaged after payroll deductions required by legislation or order have been taken into account. Such payroll deductions may include, but are not limited to, taxes, compulsory superannuation payments, HECS payments, child support payments, and judgement debtor/garnishee orders.

 

5A.3.   By mutual agreement with the Director of Public Employment (DPE), an employee may elect to package a part or all of their post compulsory deduction salary in order to obtain:

 

5A.3.1.             a benefit or benefits selected from those approved by the DPE; and

 

5A.3.2.             an amount equal to the difference between the employee’s salary, and the amount specified by the DPE for the benefit provided to or in respect of the employee in accordance with such agreement.

 

5A.4.   An election to salary package must be made prior to the commencement of the period of service to which the earnings relate.

 

5A.5.   The agreement shall be known as a Salary Packaging Agreement.

 

5A.6.   Except in accordance with sub clause 5A.7, a Salary Packaging Agreement shall be recorded in writing and shall be for a period of time as mutually agreed between the employee and the DPE at the time of signing the Salary Packaging Agreement.

 

5A.7.   Where an employee makes an election to sacrifice a part or all of their post compulsory deduction salary as additional employer superannuation contributions, the employee may elect to have the amount sacrificed:

 

5A.7.1.             paid into the superannuation fund established under the First State Superannuation Act 1992; or

 

5A.7.2.             where the employer is making compulsory employer superannuation contributions to another complying superannuation fund, paid into the same complying fund; or

 

5A.7.3.             subject to the Department’s agreement, paid into another complying superannuation fund.

 

5A.8.   Where the employee makes an election to salary sacrifice, the employer shall pay the amount of post compulsory deduction salary, the subject of election, to the relevant superannuation fund.

 

5A.9.   Where the employee makes an election to salary package and where the employee is a member of a superannuation scheme established under the:

 

5A.9.1.             Police Regulation (Superannuation) Act 1906;

 

5A.9.2.             Superannuation Act 1916;

 

5A.9.3.             State Authorities Superannuation Act 1987; or

 

5A.9.4.             State Authorities Non-contributory Superannuation Act 1987,

 

the employee’s Department must ensure that the employee’s superable salary for the purposes of the above Acts, as notified to the SAS Trustee Corporation, is calculated as if the Salary Packaging Agreement had not been entered into.

 

5A.10. Where the employee makes an election to salary package, and where the employee is a member of a superannuation fund other than a fund established under legislation listed in sub clause 5A.9 of this clause, the employee’s Department must continue to base contributions to that fund on the salary payable as if the Salary Packaging Agreement had not been entered into.  This clause applies even though the superannuation contributions made by the Department may be in excess of superannuation guarantee requirements after the salary packaging is implemented.

 

5A.11. Where the employee makes an election to salary package:

 

5A.11.1.           subject to Australian Taxation law, the amount of salary packaged will reduce the salary subject to appropriate PAYG taxation deductions by the amount packaged; and

 

5A.11.2.           any allowance, penalty rate, payment for unused leave entitlements, weekly worker’s compensation or other payment, other than any payments for leave taken in service, to which an employee is entitled under this Award or any applicable Award, Act or statute which is expressed to be determined by reference to the employee’s rate of pay, shall be calculated by reference to the rate of pay which would have applied to the employee under clause 5, Salaries and or Part B - Monetary Rates, Table 1 of this Award if the Salary Packaging Agreement had not been entered into.

 

5A.12. The DPE may vary the range and type of benefits available from time to time following discussion with the Federation.  Such variations shall apply to any existing or future Salary Packaging Agreement from date of such variation.

 

5A.13. The DPE will determine from time to time the value of the benefits provided following discussion with the Federation.  Such variations shall apply to any existing or future Salary Packaging Agreement from the date of such variation.  In this circumstance, the employee may elect to terminate the Salary Packaging Agreement.

 

3.          This variation shall operates from the beginning of the first pay period to commence on or after 4 April 2007.

 

 

 

P. J. CONNOR, Commissioner

 

 

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Printed by the authority of the Industrial Registrar.