Time for action on Salary Packaging
Published February 5, 2021
As part of our campaign to end the wages policy and fix the Awards, your HSU representatives are also calling on the Government to end the 50% salary packaging deduction that NSW Health takes from your tax savings.
As members may be aware, NSW Health staff can salary package because the organisation is categorised as a Public Benevolent Institution by the Australian Taxation Office (ATO).
This entitlement to salary packaging reduces your taxable income and applies across the Not For Profit and Charitable Sector as well as the public health system across Australia.
But unlike staff in the charitable sector and those working in the health system in other states, staff in NSW Health must give their employer 50% of their tax savings they get from salary packaging.
I think most people would agree that this is outrageous. No other worker, public or private, would think it is acceptable for their employer to take 50% (or any percentage, for that matter) of their tax savings.
In the current environment, while the Government ‘celebrating’ the work of our Healthcare Heroes but only providing a paltry 0.3% pay rise, giving back the tax savings that health staff have earned is surely a no brainer and the very least they can do.
For many health workers, it would equal approximately $24 extra per week in their take home pay – money they have earned that could be used to pay for the rising cost of living and supporting a family in the most expensive state in the country.
You can endorse our campaign list of demands – including calling on the government to end this 50% tax rip off – by following this link: www.hsu.asn.au/our-latest/lets-get-it-fixed/
This campaign is one of the biggest ever launched by the HSU and aims to address so many inequalities and injustices affecting public health workers. Progress can be made, but only with strong support from you and all your workmates. Encourage your workmates to join today online at www.hsu.asn.au/join or phone 1300 478 679.