February 27, 1997

Despite the eagerly anticipated and (by early indications) correct payment of all retrospective wages increases to permanent members on 27th February, the Department has now managed to bungle the tax.

All members should be aware that the Department’s payroll system failed to deduct tax from members’ regular fortnightly wages and allowances in the pay for period ending 27/2/97.

Tax has been deducted (remarkably!) from the backpay received with this pay.

The Department has an obligation to ensure that the correct tax is deducted and is therefore required to redress the situation before the end of this financial year.

As there are eight (8) pay periods remaining before the end of this financial year, the Union has given concurrence to remedy the situation as follows:

– the tax that should have been deducted will be deducted in eight (8) equal instalments over the next eight (8) pay periods. Each of these instalments will be 12.5% of the total amount that should be deducted [12.5 % x 8 = 100%].

– eg: if you should have had $300 in tax deducted from your regular pay then you will have $37.50 per fortnight deducted from each of the next 8 pay periods. $37.50 is a 12.5% instalment on the total outstanding amount. $37.50 x 8 weeks = $300.

A separate pay code BTAX (short for back tax) will indicate the dollar amount of each instalment. To calculate the total amount simply multiply this amount by 8.

Members should contact the Union office on (02) 9267 5552 for clarification.

Graham Webb

for Chris Read

State Secretary

27th February, 1997



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