EmailHospital Circular 12/2001
Date Issued: 8 June 2001
Publication: 12/2001
Distribution: Public Hospitals
Subjects: FBT Compensation Arrangements for HSUA No.5 Branch Covered Employees
Purpose: To advise you of an agreement reached between the Department and HSUA No.5 Branch on FBT Compensation and of the related funding arrangements.
The Department has recently agreed an arrangement with the Health Services Union of Australia (Victoria) No. 5 Branch on compensation for the effects of last year's changes to Federal Fringe Benefits Tax legislation.
A Memorandum of Understanding to formalise the agreement between the Department, HSUA No. 5 Branch, the Victorian Hospitals Industrial Association and Mercy Public Hospitals Inc. is in draft and should be finalised shortly.
The Arrangement
Under the agreement, FBT Compensation will apply to HSUA No. 5 Branch covered employees who, as at 31 March 2000:
- were participating in salary packaging arrangements; and
- had a packagable salary of at least $35,000 pa, but not more than $90,000 pa; and
- were packaging in excess of $8,755 of benefits.
Employees who satisfy the above criteria will receive compensation by way of an ongoing allowance based on the following scale:
| Annual Packagable Salary as at 31 March 2000 | Allowance Payable |
|---|---|
| $35,000 to $49,999 | 1% of Packagable Salary at 31/3/2000 |
| $50,000 to $59,999 | 2% of Packagable Salary at 31/3/2000 |
| $60,000 to $65,000 | 3% of Packagable Salary at 31/3/2000 |
| $65,000 to $90,000 | $1,950 |
The above allowance is payable from 1 April 2000.
Further Conditions
The following further conditions apply to ongoing payment of the above allowance:
- The allowance payable under this arrangement will remain in effect until the employment relationship is broken by resignation, retirement, retrenchment or termination of employment;
- The allowance
will not be affected by the transfer or promotion to another HSUA5 covered
position within a hospital, or in another Victorian public hospital,
provided that where the employee is moving to another Victorian public
hospital -
- Employment with the second agency was agreed prior to cessation of employment with the first agency; and
- There is no break in continuity of public sector employment; and
- Eligibility for HSUA5 membership and coverage is not affected by the move;
- The allowance amount will be subject to increase at the same rates as the employee's Award salary as a result of Enterprise Bargaining or Award outcomes;
- The allowance amount will not increase on the basis of locally renegotiated salary arrangements, nor on the basis of increases in salary through promotion;
- The allowance amount will not increase on the basis of the employee's progression through the incremental salary points for their classification;
- The allowance amount will be subject to adjustment on a pro-rata basis for movement from or to part-time employment, or with changes to part-time hours.
Funding
Initially, funding for the above arrangement will be released as a Specified Grant to cover the period from 1 April 2000 to 30 June 2001. Thereafter, funding will be incorporated within Casemix funding arrangements.
The initial grant will be calculated on the basis of hospitals' responses to the Department's October 2000 survey of salary packaging arrangements for HSUA No.5 Branch covered employees. Agencies that did not respond to the survey at that time should now do so in order to receive funding for this arrangement. Any outstanding responses should be marked to the attention of:
Mr Simon Chant
Industrial Relations Branch
Department of Human Services
GPO Box 4057
MELBOURNE VIC 3001
Further Information
Any queries related to the above should be directed to Simon Chant on telephone 9616 2583, or by email addressed to simon.chant@dhs.vic.gov.au.
Lance Wallace
Director, Resources
