SALARY SACRIFICE SUCCESS 14 MAY 2004

News Flash SALARY SACRIFICE SUCCESS `The Federal Treasurer has announced that grants will be provided to assist state organisations that have lost their fringe benefits tax (FBT) status following recent court judgments and a review of eligibility by the Australian Tax Office. The grants scheme will enable funding to be provided over a four year period effective from 1 April 2004.` `Although formal confirmation is yet to be received and information about the change is limited at this stage, it appears that the grants will enable members in the affected areas to resume salary sacrifice arrangements under the same FBT conditions that applied prior to the changes.` `Agencies affected by the changes include IDSC, IMVS, SADS, Domiciliary Care, Noarlunga Health Service, Julia Farr and a number of hospitals.` `Unfortunately, it is believed that these arrangements will not apply to new staff or to those who were not involved in salary sacrifice prior to 1 April.` `PSA has been working tirelessly as part of the Salary Sacrifice Working Group (SSWG) to reverse the change. SSWG and PSA representatives have pursued the situation with politicians from all major parties, at both Federal and State level.` `This action has been heavily supported by PSA members and others from the SA community who have lobbied politicians, written letters, contributed to talk-back radio segments, sent emails and signed petitions and generally fought hard to have the situation reviewed and overturned.` `The announcement from the Federal Treasurer shows that all of this hard work has been successful and as a result it is expected that Salary Sacrifice benefits previously available to members of the affected agencies will return.` `Further information will be provided as soon as it is available.` `For enquiries, please contact PSA Industrial Officer Ken Smith on 8205 3231 or at ks@cpsu.asn.au` `14 May 2004` PSA WORKING FOR YOU

SALARY SACRIFICE SUCCESS

The Federal Treasurer has announced that grants will be provided to assist state organisations that have lost their fringe benefits tax (FBT) status following recent court judgments and a review of eligibility by the Australian Tax Office. The grants scheme will enable funding to be provided over a four year period effective from 1 April 2004.

Although formal confirmation is yet to be received and information about the change is limited at this stage, it appears that the grants will enable members in the affected areas to resume salary sacrifice arrangements under the same FBT conditions that applied prior to the changes.

Agencies affected by the changes include IDSC, IMVS, SADS, Domiciliary Care, Noarlunga Health Service, Julia Farr and a number of hospitals.

Unfortunately, it is believed that these arrangements will not apply to new staff or to those who were not involved in salary sacrifice prior to 1 April.

PSA has been working tirelessly as part of the Salary Sacrifice Working Group (SSWG) to reverse the change. SSWG and PSA representatives have pursued the situation with politicians from all major parties, at both Federal and State level.

This action has been heavily supported by PSA members and others from the SA community who have lobbied politicians, written letters, contributed to talk-back radio segments, sent emails and signed petitions and generally fought hard to have the situation reviewed and overturned.

The announcement from the Federal Treasurer shows that all of this hard work has been successful and as a result it is expected that Salary Sacrifice benefits previously available to members of the affected agencies will return.

Further information will be provided as soon as it is available.

For enquiries, please contact PSA Industrial Officer Ken Smith on 8205 3231 or at ks@cpsu.asn.au

14 May 2004

PSA WORKING FOR YOU