SALARY SACRIFICE UPDATE

PSA was instrumental in having Salary Sacrifice introduced into the Public Service.

Early in 2004 changes in FBT treatment of salary sacrifice arrangements reduced benefits for members in health units and some hospitals.

Following successful lobbying by PSA and the Salary Sacrifice Working Group (SSWG) the Federal Government agreed to provide grants to organisations affected by the FBT changes. The grants are to reimburse members who had their benefits reduced.

The Federal Treasurer's Office has stated that “The Government is concerned to ensure that individual employees are not disadvantaged by the organisations' loss of access to the FBT concessions.”

However it is now clear that there will be winners and losers from this and that some people WILL be disadvantaged. PSA has raised a number of issues with Government representatives.

these include:

members commencing salary sacrifice part-way through the 2003-4 FBT year.

members who have changed employment e.g. between hospitals and health units.

members who were actively discouraged from commencing salary sacrifice once the likelihood of FBT changes were known.

situations where there was administrative delay in commencing a salary sacrifice arrangement

situations where members will not have enough time to gain their full reimbursement given that the 2004-05 FBT year has only 6 months to run.

Members who are being disadvantaged due to these (or other factors) should advise details to PSA Industrial Officer Ken Smith ks@cpsu.asn.au or on 8205 3231

PSA will continue to fight for full reimbursement for all members who have lost out.

Further information is also available from the SSWG web-site at www.sswg.blogspot.com