LOCAL GOVERNMENT (ELECTRICIANS) (STATE) AWARD

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by Electrical Trades Union of Australia, New South Wales Branch, industrial organisation of employees.

 

(No. IRC 2410 of 2005)

 

 

VARIATION

 

1.          Insert in clause 1, Arrangement, of the award published 4 August 2000 (317 I.G. 519), the following new clause numbers and subject matter and renumber the existing clause 38, Area, Incidence and Duration to read as clause 40:

 

38.  Salary Sacrifice

39.  Superannuation

40.  Area, Incidence and Duration

 

2.          Renumber clause 38, Area, Incidence and Duration. to read as clause 40 and insert after of clause 37, Jury Service, the following new clauses:

 

38.  Salary Sacrifice

 

(i)         Council and an employee may agree to enter into a salary sacrifice arrangement, which allows an employee to receive a part of their pre tax salary as a benefit rather than salary.  Such agreement shall not unreasonably be withheld.

 

(ii)        Benefits that may be salary sacrificed include child care facilities operated by council on its premises; and additional superannuation and motor vehicles supplied by council under lease back arrangements where the amount to be salary sacrificed for leaseback of a council motor vehicle is that part of the lease back fee that exceeds council’s fringe benefit tax liability.

 

(iii)       The value of the benefits shall be agreed between the council and employee and shall include fringe benefits tax where applicable.

 

(iv)

 

(a)        The salary sacrifice arrangement, including the benefits to be salary sacrificed and their value including fringe benefit(s) tax, shall be in writing and signed by both council and the employee.

 

(b)        The employee may request in writing to change the benefits to be salary sacrificed once each year and the council shall not unreasonably refuse the request.

 

(v)        The employee’s gross pay is their pre tax ordinary pay less the values of the salary sacrifice benefit including fringe benefit(s) tax.

 

(vi)       The value of a salary sacrifice benefit and applicable fringe benefit tax, shall be treated as an approved benefit for superannuation purposes and shall not reduce the employee’s salary for employer contributions.

 

(vii)      The value of salary sacrifice benefits and applicable fringe benefits tax shall be ordinary pay for calculating overtime and termination payments.

 

(viii)     The employee is responsible for seeking appropriate financial advice when entering into any arrangement under this clause.

 

(ix)

 

(a)        The council will ensure that the salary sacrifice arrangement complies with taxation and other relevant laws.

 

(b)        The council has the right to vary and/or withdraw from offering salary sacrifice to employees with appropriate notice if there is any alteration to relevant legislation that is detrimental to salary sacrifice arrangements.

 

(x)        A salary sacrifice arrangement shall cease on the day of termination of employment.

 

(xi)       A salary sacrifice arrangement shall be suspended during periods of leave without pay.

 

(xii)      Council may maintain and/or enter into other salary sacrifice arrangements with employees.

 

39.  Superannuation Fund Contributions

 

Subject to the provisions of the Industrial Relations Act 1996, a council shall make superannuation contributions to the Local Government Superannuation Scheme and not to any other superannuation fund.

 

3.          This variation shall take effect from the first full pay period to commence on or after 19 May 2005.

 

 

 

R. W. HARRISON  D.P.

 

 

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Printed by the authority of the Industrial Registrar.