Sydney Catchment Authority Consolidated Award 2005

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by Public Employment Office.

 

(No. IRC 3650 of 2006)

 

 

VARIATION

 

1.          Delete Clause 14, Salary Sacrifice to Superannuation, of the award published 20 January 2006 (356 I.G. 421) and insert in lieu thereof the following:

 

14.  Salary Packaging Arrangements, Including Salary Sacrifice to Superannuation

 

14.1      The entitlement to salary package in accordance with this clause is available to:

 

(a)        permanent full-time and part-time employees;

 

(b)        temporary employees, subject to the SCA’s convenience; and

 

(c)        casual employees, subject to the SCA’s convenience, and limited to salary sacrifice to superannuation in accordance with subclause 14.12.

 

14.2      For the purposes of this clause:

 

(a)        "TRP" means the Total Remuneration Package, comprising cash salary and compulsory superannuation contribution.

 

(b)        "salary" means the salary or rate of pay prescribed for the employee's classification by clause 10, Rates of Pay, Schedule 1 to this Award, and any other payment that can be salary packaged in accordance with Australian taxation law.

 

(c)        "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.

 

14.3      By mutual agreement with the Chief Executive, an employee may arrange the annual Total Remuneration Package (TRP) so that it can include the following items:

 

(a)        Salary;

 

(b)        Superannuation;

 

(c)        Motor Vehicle leased through the employer (subject to subclause 14.10 below);

 

(d)        Transport (cost of annual ticket);

 

(e)        Aged care;

 

(f)         Mortgage repayments;

 

(g)        Rental payments;

 

(h)        Health fund premiums;

 

(i)         Laptops, e-organisers and briefcases; and

 

(j)         Any other benefits as approved by the Chief Executive from time to time.

 

14.4      By mutual agreement with the Chief Executive, an employee may elect to package a part or all of their post compulsory deduction salary in order to obtain:

 

(a)        a benefit or benefits selected from those approved by the Chief Executive, as listed in subclause 14.3; and

 

(b)        an amount equal to the difference between the employee’s salary, and the amount specified by the Chief Executive for the benefit provided to or in respect of the employee in accordance with such agreement.

 

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

 

14.6      The agreement shall be known as a Salary Packaging Agreement.

 

14.7      Except in accordance with subclause 14.12, 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 Chief Executive at the time of signing the Salary Packaging Agreement.

 

14.8      An employee may request the SCA in writing to reconfigure the annual Total Remuneration Package not more than four times in any one year.

 

14.9      FBT payable in respect of packaging any of the items listed in subclause 14.3 will be charged to the employee.

 

14.10    Unless otherwise approved by the employer, salary packaging of a vehicle arrangement must be cost neutral to the employer. To this end, a salary package may include the following components, each of which will be charged to the employee:

 

(a)        Annual lease rate;

 

(b)        Fleet management fee;

 

(c)        Risk insurance charge;

 

(d)        Comprehensive insurance;

 

(e)        CTP insurance;

 

(f)         Maintenance costs;

 

(g)        Registration;

 

(h)        NRMA membership;

 

(i)         Fuel; and

 

(j)         FBT.

 

14.11    Obtaining independent taxation and financial advice in relation to packaging arrangements is the employee’s responsibility and is encouraged to be obtained prior to entering into a Salary Packaging Agreement.

 

14.12    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:

 

(a)        paid into the superannuation fund established under the First State Superannuation Act 1992; or

 

(b)        where the SCA is making compulsory employer superannuation contributions to another complying superannuation fund, paid into the same complying fund; or

 

(c)        subject to the SCA’s agreement, paid into another complying superannuation fund.

 

14.13    Where the employee makes an election to salary sacrifice, the SCA shall pay the amount of post compulsory deduction salary, the subject of election, to the relevant superannuation fund.

 

14.14    The amount of post compulsory deduction salary which an employee may elect to sacrifice to superannuation is limited to an amount which ensures that the aggregated amounts of employer contributions to accumulation funds (compulsory employer superannuation contributions and additional employer superannuation contributions) do not exceed the employee’s maximum deductible aged based limit set by the Australian Tax Office as varied from time to time.

 

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

 

(a)        Police Regulation (Superannuation) Act 1906;

 

(b)        Superannuation Act 1916;

 

(c)        State Authorities Superannuation Act 1987; or

 

(d)        State Authorities Non-contributory Superannuation Act 1987,

 

the SCA 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.

 

14.16    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 subclause 14.15 of this clause, the SCA 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 SCA may be in excess of superannuation guarantee requirements after the salary packaging is implemented.

 

14.17    Where the employee makes an election to salary package:

 

(a)        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

 

(b)        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 10, Rates of Pay, or Schedule 1 to this Award if the Salary Packaging Agreement had not been entered into.

 

14.18    The Chief Executive may vary the range and type of benefits available from time to time following discussion with the Unions.  Such variations shall apply to any existing or future Salary Packaging Agreement from date of such variation.

 

14.19    The Chief Executive will determine from time to time the value of the benefits provided following discussion with the Unions. 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.

 

2.          Delete clause 54, Salary Packaging, and renumber the remaining clauses within the Award.

 

3.          This variation shall take effect on and from 14 December 2006.

 

 

 

E. A. R. BISHOP, Commissioner

 

 

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Printed by the authority of the Industrial Registrar.