| THREAT TO SALARY PACKAGING IN STAND ALONE COMMUNITY HEALTH CENTRES |
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As the result of an ATO ruling, the capacity for employees of stand-alone CHCs to salary package will cease from 31 March 2008. Stand alone CHCs are those which are not part of broader health services.
Currently employees of CHCs are able to package a significant proportion of their income. The amount that can be packaged for CHC employees is greater than that available to employees of public health agencies such as hospitals and is commensurate with church and charitable organizations. We attended a meeting of Unions last Friday to obtain more information about the status of the ruling and discuss strategic action to prevent the implementation of the ATO ruling. It was revealed through leaked briefing notes that the former Health Minister, Bronwyn Pike, knew of the potential of this ruling and was in a position to take steps to negate it 12 months ago but sat on her hands. The ATO ruling, if implemented, will make it next to impossible for community health services to attract and retain staff. We have written to Health Minister Daniel Andrews demanding that he now take the steps that should have been put in place 12 months ago to protect our members who work in community health. Members of the union who work in stand alone CHCs should take immediate steps to ensure that their finances are in order - we have no confidence that this situation will be fixed quickly. This will mean that there will be an immediate affect on your pay packet. If you need financial advice the ACTU has a list of endorsed financial advisors. Your employer may also be able to direct you to financial advice services. The MSAV / VPA will continue to push for immediate action on the part of state and federal ministers for health and community services. We will be attending a meeting with the VHA and other unions today to get an update on the situation. We have heard reports that the ATO may reverse the ruling but this is yet to be confirmed. We will keep members informed.
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