Public
Health System Nurses' & Midwives' (State) Award
INDUSTRIAL RELATIONS
COMMISSION OF NEW SOUTH WALES
Application by New South
Wales Health Department.
(No. IRC 2848 of 2006)
Before Commissioner
McLeay
|
15 August 2006
|
VARIATION
1. Delete clause
10, Salary Sacrifice to Superannuation, of the award published 24 February 2006
(357 I.G. 345), and insert in lieu thereof the following:
10. Salary Sacrifice
to Superannuation
(i) Notwithstanding
the salaries prescribed in clause 9, Salaries as varied from time to time, an
employee may elect, subject to the agreement of the employee’s employer, to
sacrifice a part or all of the salary payable under the salaries clause to
additional employer superannuation contributions. Such election must be made
prior to the commencement of the period of service to which the earnings
relate. The amount sacrificed together with any salary packaging arrangements
under clause 51, Salary Packaging, of this award may be made up to one hundred
(100) per cent of the salary payable under the salaries clause, or up to one
hundred (100) per cent of the currently applicable superannuable salary,
whichever is the lesser.
In this clause, ‘superannuable salary’ means the employee’s
salary as notified from time to time to the New South Wales public sector
superannuation trustee corporations.
(ii) Any pre-tax
and post-tax payroll deductions must be taken into account prior to determining
the amount of available salary to be packaged. Such payroll deductions may
include but are not limited to superannuation payments, HECS payments, child
support payments, judgement debtor/garnishee orders, union fees and private
health fund membership fees.
(iii) Where the employee
has elected to sacrifice a part or all of the available payable salary to
additional employer superannuation contributions:
(a) The employee
shall be provided with a copy of the signed agreement. The salary sacrifice
agreement shall be terminated at any time at the employee’s election and shall
cease upon termination of the employee’s services with the employer.
(b) Subject to
Australian taxation law, the amount of salary sacrificed will reduce the salary
subject to appropriate PAYE taxation deductions by the amount sacrificed; and
(c) Any allowance,
penalty rate, overtime, 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 the relevant award or any
applicable award, act, 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 the salaries clause in the
absence of any salary sacrifice to superannuation made under this award.
(iv) The employee
may elect to have the specified amount of payable salary which is sacrificed to
additional employer superannuation contributions:
(a) paid into the
superannuation scheme established under the First State Superannuation Act
1992 as optional employer contributions; or
(b) subject to the
employer’s agreement, paid into a private sector complying superannuation
scheme as employer superannuation contributions.
(v) Where an
employee elects to salary sacrifice in terms of subclause (iv) above, the
employer will pay the sacrificed amount into the relevant superannuation fund.
(vi) Where the
employee is a member of a superannuation scheme established under:
(a) the Police
Regulation (Superannuation) Act, 1906;
(b) the Superannuation
Act, 1916;
(c) the State
Authorities Superannuation Act, 1987;
(d) the State
Authorities Non-contributory Superannuation Act, 1987; or
(e) the First
State Superannuation Act, 1992.
The employee’s employer must ensure that the amount of
any additional employer superannuation contributions specified in subclause (i)
above is included in the employee’s superannuable salary which is notified to
the New South Wales public sector superannuation trustee corporations.
(vii) Where, prior
to electing to sacrifice a part or all of their salary to superannuation, an
employee had entered into an agreement with their employer to have
superannuation contributions made to a superannuation fund other than a fund
established under legislation listed in subclause (vi) above, the employer will
continue to base contributions to that fund on the salary payable under clause
9. Salaries of the award to the same
extent as applied before the employee sacrificed that amount of salary to
superannuation. This clause applies
even though the superannuation contributions made by the employer may be in
excess of the superannuation guarantee requirements after the salary sacrifice
is implemented.
2. Delete clause
51, Salary Packaging, and insert in lieu thereof the following:
51. Salary Packaging
1. By agreement
with their employer, employees may elect to package part or all 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 may be up to 100 per cent of salary.
Any salary packaging above the fringe benefit exemption
cap will attract fringe benefits tax as described in paragraph 4 below.
2. Where an
employee elects to package an amount of salary:
(a) Subject to
Australian taxation law, the packaged amount of salary will reduce the salary
subject to PAYE taxation deductions by that packaged amount.
(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 9. Salaries, and which shall include ‘approved employment benefits’
which refer to fringe benefit savings, administration costs, and the value of
packaged benefits.
3. Any pre-tax
and post-tax payroll deductions must be taken into account prior to determining
the amount of available salary to be packaged. Such payroll deductions may
include but are not limited to superannuation payments, HECS payments, child
support payments, judgement debtor/garnishee orders, union fees, and private
health fund membership fees.
4. The salary
packaging scheme utilises a fringe benefit taxation exemption status conferred
on public hospitals and area health services, which provides for a fringe
benefit 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 on to 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.
5. The parties
agree that the application of the fringe benefits tax exemption status
conferred on public hospitals and area health services is subject to prevailing
Australian taxation laws.
6. 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.
7. 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.
8. 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.
9. The employer
and the employee shall comply with the 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 15 August 2006.
J.
McLEAY, Commissioner
____________________
Printed by
the authority of the Industrial Registrar.