Common use of REMUNERATION PACKAGING Clause in Contracts

REMUNERATION PACKAGING. An Employee may, by agreement with the Employer, enter into a remuneration packaging arrangement in accordance with the Employer’s Salary Packaging Guidelines and Agreement or any similar remuneration packaging arrangement offered by the Employer. Remuneration packaging is an arrangement whereby the entitlements under this Agreement, contributing toward the Total Employment Cost (as defined) of an Employee, can be reduced by and substituted with another, or other benefits. For the purposes of this clause, Total Employment Cost (TEC) is defined as the cost of salary and other benefits aggregated to a total figure or TEC, less the cost of Compulsory Employer Superannuation Guarantee Contributions. The TEC for the purpose of remuneration packaging, is calculated by adding: the base salary; other cash allowances, e.g. Annual leave loading non-cash benefits, e.g. Superannuation, motor vehicle etc. any Fringe Benefit tax liabilities currently paid; and any variable components, where commuted or annualised. Where an Employee enters into a remuneration packaging arrangement the Employee will be required to enter into a separate written agreement with the Employer that sets out the terms and conditions of the arrangement, including an irrevocable signed agreement to allow the Employer to deduct from the Employee’s wages any outstanding liabilities to be paid. Notwithstanding any remuneration packaging arrangement the wage rates specified in Schedule A – Wage Tables are the basis for calculating related entitlements specified in this Agreement. The remuneration packaging arrangement must be cost neutral in relation to the total cost to the Employer. The remuneration packaging arrangement must also comply with relevant taxation laws and the Employer will not be liable for any additional tax, penalties or other costs payable or which may become payable by the Employee. In the event of any increase or additional payments of tax or penalties associated with the employment of the Employee or the provision of Employer benefits under the remuneration packaging arrangement, such tax, penalties and any other costs shall be borne by the Employee. In the event of significant increases in Fringe Benefit Tax liability or administrative costs relating to arrangements under this clause, the Employee may vary or cancel a remuneration packaging arrangement. The cancellation of a remuneration packaging arrangement will not cancel or otherwise affect the operation of this Agreement. The Employer shall not unreasonably withhold agreement to remuneration packaging on request from an Employee. The Dispute Resolution Procedure contained in this Agreement shall be used to resolve any dispute arising from the operations of this clause.

REMUNERATION PACKAGING. An Employee may, by (i) This clause shall apply only to employees of those hospitals which have Public Benevolent Institution (PBI) taxation status. (ii) By agreement with their employer, employees may elect to package a portion of their salary in accordance with this clause, to obtain a range of benefits. Such election must be made prior to the Employercommencement of the period of service to which the earnings relate. (iii) Where an employee elects to package a portion of salary: (a) Subject to Australian taxation law, enter into a remuneration the packaged portion of salary will reduce the salary subject to appropriate PAYG taxation deductions by the amount of that packaged portion. (b) Any allowance, penalty rate, overtime payment, payment for unused leave entitlements, weekly workers’ compensation, or other payment other than any payment for leave taken in service, to which an employee is entitled under this agreement or statute which is expressed to be determined by reference to an employee’s salary, shall be calculated by reference to the salary which would have applied to the employee under this agreement in the absence of any salary packaging arrangement or salary sacrificing made under this Agreement (c) ‘Salary’ for the purpose of this clause, for superannuation purposes, and for the calculation of agreement entitlements, shall mean the agreement salary as specified in Clause 14 Wages, and which shall include ‘approved employment benefits’ which refer to fringe benefit savings, administration costs, and the value of packaged benefits. (iv) The salary packaging scheme utilises the Public Benevolent Institution (PBI) taxation status, which provides for fringe benefits tax exemption caps. The maximum amount of fringe benefits-free tax savings that can be achieved under the scheme is where the value of benefits when grossed-up, equal the fringe benefits exemption cap set by he A.T.O. Where the grossed-up value exceeds the cap, the employer is liable to pay fringe benefits tax on the amount in excess the cap, but will pass this cost on to the employee. The employer’s share of savings, the combined administration cost, and the value of the package benefits, are deducted from pre tax dollars. (v) The parties agree that the application of the fringe benefits tax exemption cap and the PBI status of health facilities are subject to prevailing Australian taxation laws. (vi) If an employee wishes to withdraw from the salary packaging scheme, the employee may only do so in accordance with the Employer’s Salary Packaging Guidelines and Agreement or any similar remuneration packaging arrangement offered required period of notice as determined by the Employer. Remuneration packaging is an arrangement whereby the entitlements under this Agreement, contributing toward the Total Employment Cost employer. (as definedvii) of an Employee, can be reduced by and substituted with another, or other benefits. For the purposes of this clause, Total Employment Cost (TEC) is defined as the cost of salary and other benefits aggregated to a total figure or TEC, less the cost of Compulsory Employer Superannuation Guarantee Contributions. The TEC for the purpose of remuneration packaging, is calculated by adding: the base salary; other cash allowances, e.g. Annual leave loading non-cash benefits, e.g. Superannuation, motor vehicle etc. any Fringe Benefit tax liabilities currently paid; and any variable components, where commuted or annualised. Where an Employee enters into a remuneration packaging arrangement the Employee employee ceases to salary package, arrangements will be required made to enter into a separate written agreement with convert the Employer that sets out the terms and conditions of the arrangement, including an irrevocable signed agreement agreed package amount to allow the Employer to deduct from the Employee’s wages any outstanding liabilities to be paidsalary. Notwithstanding any remuneration packaging arrangement the wage rates specified in Schedule A – Wage Tables are the basis for calculating related entitlements specified in this Agreement. The remuneration packaging arrangement must be cost neutral in relation to the total cost to the Employer. The remuneration packaging arrangement must also comply with relevant taxation laws and the Employer will not be liable for any additional tax, penalties or other Any costs payable or which may become payable by the Employee. In the event of any increase or additional payments of tax or penalties associated with the employment of the Employee or the provision of Employer benefits under the remuneration packaging arrangement, such tax, penalties and any other costs shall conversion will be borne by the Employee. In employee, and the event of significant increases in Fringe Benefit Tax liability or administrative costs relating to arrangements under this clause, the Employee may vary or cancel a remuneration packaging arrangement. The cancellation of a remuneration packaging arrangement will not cancel or otherwise affect the operation of this Agreement. The Employer employer shall not unreasonably withhold agreement be liable to remuneration make up any salary lost as a consequence of the employee’s decision to convert to salary. (viii) Employees accepting the offer to salary package do so voluntarily. Employees are advised to seek independent financial advice and counselling to apprise them of the implications of salary packaging on request from an Employee. The Dispute Resolution Procedure contained in this Agreement shall be used to resolve any dispute arising from the operations of this clausetheir individual personal financial situations.

REMUNERATION PACKAGING. 4.3.1. An Employee employee may, by agreement with the Employer, enter into a remuneration salary packaging arrangement in accordance with the Employer’s Salary Packaging Guidelines and Agreement or any similar remuneration salary packaging arrangement offered by the Employer. 4.3.2. Remuneration packaging is an arrangement whereby the entitlements under this Agreementagreement, contributing toward the Total Employment Cost (as defineddefined in subclause 4.3.3) of an Employeeemployee, can be reduced by and substituted with another, another or other benefits. 4.3.3. For the purposes of this clause, Total Employment Cost (TEC) is defined as the cost of salary and other benefits aggregated to a total figure or TEC, less the cost of Compulsory Employer Superannuation Guarantee Contributions. 4.3.4. The TEC for the purpose of remuneration salary packaging, is calculated by adding: the base salary; other cash allowances, e.g. Annual annual leave loading non-non cash benefits, e.g. Superannuation, motor vehicle etc. any Fringe Benefit Benefits tax liabilities currently paid; and any variable components, where commuted or annualised. 4.3.5. Where an Employee employee enters into a remuneration packaging arrangement the Employee they will be required to enter into a separate written agreement with the Employer that sets out the terms and conditions of the arrangement, including an irrevocable signed agreement to allow the Employer to deduct from the Employeeemployee’s wages any outstanding liabilities to be paid. 4.3.6. Notwithstanding any remuneration packaging arrangement the wage rates rate specified in Schedule A – Wage Tables are C or D of this Agreement is the basis for calculating related entitlements specified in this AgreementAgreement and the salary packaging agreement. 4.3.7. The remuneration packaging arrangement must be cost neutral in relation to the total cost to the Employer. 4.3.8. The remuneration packaging arrangement must also comply with relevant taxation laws and the Employer will not be liable for any additional tax, penalties or other costs payable or which may become payable by the Employeeemployee. 4.3.9. In the event of any increase or additional payments of tax or penalties associated with the employment of the Employee employee or the provision of Employer benefits under the remuneration salary packaging arrangementagreement, such tax, penalties and any other costs shall be borne by the Employeeemployee. 4.3.10. In the event of significant increases in Fringe Benefit Benefits Tax liability or administrative costs relating to arrangements under this clause, the Employee employee may vary or cancel a remuneration packaging arrangement. 4.3.11. The cancellation of a remuneration packaging arrangement will not cancel or otherwise affect the operation of this Agreement. 4.3.12. The Employer shall not unreasonably withhold agreement to remuneration packaging on request from an Employeeemployee. 4.3.13. The Dispute Resolution Procedure contained in this Agreement at clause 8.1 shall be used to resolve any dispute arising from the operations of this clause.

REMUNERATION PACKAGING. An Employee may, by (i) By agreement with their employer, employees may elect to package a portion of their salary in accordance with this clause, to obtain a range of benefits. Such election must be made prior to the Employercommencement of the period of service to which the earnings relate. (ii) Where an employee elects to package a portion of salary: (a) Subject to Australian taxation law, enter into a remuneration the packaged portion of salary will reduce the salary subject to appropriate PAYG taxation deductions by the amount of that packaged portion. (b) Any allowance, penalty rate, overtime payment, payment for unused leave entitlements, weekly workers’ compensation, or other payment other than any payment for leave taken in service, to which an employee is entitled under this agreement or statute which is expressed to be determined by reference to an employee’s salary, shall be calculated by reference to the salary which would have applied to the employee under this agreement in the absence of any salary packaging arrangement or salary sacrificing made under this award. (c) ‘Salary’ for the purpose of this clause, for superannuation purposes, and for the calculation of agreement entitlements, shall mean the agreement salary as specified in Clause 6 Wages, and which shall include ‘approved employment benefits’ which refer to fringe benefit savings, administration costs, and the value of packaged benefits. (iii) The salary packaging scheme utilises the Public Benevolent Institution (PBI) taxation status, which provides for fringe benefits tax exemption caps. The maximum amount of fringe benefits-free tax savings that can be achieved under the scheme is where the value of benefits when grossed-up, equal the fringe benefits exemption cap set by he A.T.O. Where the grossed-up value exceeds the cap, the employer is liable to pay fringe benefits tax on the amount in excess the cap, but will pass this cost on to the employee. The employer’s share of savings, the combined administration cost, and the value of the package benefits, are deducted from pre tax dollars. (iv) The parties agree that the application of the fringe benefits tax exemption cap and the PBI status of health facilities are subject to prevailing Australian taxation laws. (v) If an employee wishes to withdraw from the salary packaging scheme, the employee may only do so in accordance with the Employer’s Salary Packaging Guidelines and Agreement or any similar remuneration packaging arrangement offered required period of notice as determined by the Employer. Remuneration packaging is an arrangement whereby the entitlements under this Agreement, contributing toward the Total Employment Cost employer. (as definedvi) of an Employee, can be reduced by and substituted with another, or other benefits. For the purposes of this clause, Total Employment Cost (TEC) is defined as the cost of salary and other benefits aggregated to a total figure or TEC, less the cost of Compulsory Employer Superannuation Guarantee Contributions. The TEC for the purpose of remuneration packaging, is calculated by adding: the base salary; other cash allowances, e.g. Annual leave loading non-cash benefits, e.g. Superannuation, motor vehicle etc. any Fringe Benefit tax liabilities currently paid; and any variable components, where commuted or annualised. Where an Employee enters into a remuneration packaging arrangement the Employee employee ceases to salary package, arrangements will be required made to enter into a separate written agreement with convert the Employer that sets out the terms and conditions of the arrangement, including an irrevocable signed agreement agreed package amount to allow the Employer to deduct from the Employee’s wages any outstanding liabilities to be paidsalary. Notwithstanding any remuneration packaging arrangement the wage rates specified in Schedule A – Wage Tables are the basis for calculating related entitlements specified in this Agreement. The remuneration packaging arrangement must be cost neutral in relation to the total cost to the Employer. The remuneration packaging arrangement must also comply with relevant taxation laws and the Employer will not be liable for any additional tax, penalties or other Any costs payable or which may become payable by the Employee. In the event of any increase or additional payments of tax or penalties associated with the employment of the Employee or the provision of Employer benefits under the remuneration packaging arrangement, such tax, penalties and any other costs shall conversion will be borne by the Employee. In employee, and the event of significant increases in Fringe Benefit Tax liability or administrative costs relating to arrangements under this clause, the Employee may vary or cancel a remuneration packaging arrangement. The cancellation of a remuneration packaging arrangement will not cancel or otherwise affect the operation of this Agreement. The Employer employer shall not unreasonably withhold agreement be liable to remuneration packaging on request from an Employee. The Dispute Resolution Procedure contained in this Agreement shall be used make up any salary lost as a consequence of the employee’s decision to resolve any dispute arising from the operations of this clauseconvert to salary.