October 5, 1996

Members would be aware that the agreement reached by the Union to remedy the recent tax dispute with the Department involved a 3 stage adjustment process.

The ‘Stage 1’ payment provided an adjustment on the 60c/km allowance and 59% of the relieving allowance. This adjustment covered the period from 1994 to 30 June, 1996. Members should have received this payment on 15 August, 1996.

The ‘Stage 2’ payment is an inconvenience payment of an additional 50% of the payment in relation to the tax liability  on the 60c/km allowance for 1995/96. Members should receive the ‘Stage 2’ payment on 7 November, 1996.

Members should be aware that following discussions between the parties, the statutory declaration previously envisaged has been dispensed with.

The ‘Stage 2’ payment will be similar to the previous payment, being included in members ordinary pay and itemised under a separate pay code.

The ‘Stage 3’ payment will provide an adjustment from 1 July, 1996 to the date that the current award is replaced by a new award or industrial instrument. This adjustment will involve both the 60c/km allowance and 59% of the relieving allowance. The timeframe of this payment will be advised as a matter of course.

Finally, members are reminded to keep a log book of all work related kilometres travelled. Such records may be invaluable in claiming tax deduction against kilometre allowances in the 1996/97 financial year.

Kirsten Cameron

Industrial Officer

for State Secretary

15th October, 1996