How has supplementation been calculated?

The Government undertook a rigorous process to calculate its share of the wage increase, testing the calculations through a number of different processes. For example, through examination of data generated through the Social Policy Research Centre (SPRC) Survey in 2011. The survey examined employment arrangements, including what coverage the SACS Modern Award would have across certain employers directly funded by the Commonwealth. This data helped confirm that the Commonwealth’s costing assumptions are robust.

The report is available at from the Social Policy Research Centre at the University of New South Wales.

How much supplementation will my organisation receive?

The Australian Government is using the three factors detailed below to calculate the supplementation offered to service providers:

  • The value of the existing funding agreement/grant
  • The average (SACS) wage component of a Program
  • The Equal Remuneration Order (ERO) wage increase in relevant state/territory for the appropriate years^.

SACS supplementation formula

This formula will be applied to calculate supplementation:

Program funding amount x % SACS wage component x SACS ERO increase^

^ The ERO increases that take effect on 1 December each year are based on a calendar year.  However, most funding agreements are established on a financial year basis. This means the ERO increase percentages that departments will use, are a combination of July to November of one year plus December to June of the next.

Examples of calculations

Examples Only

New South Wales

An eligible organisation in New South Wales receives $100,000 Commonwealth funding to deliver the Communities for Children activity through the Family Support Program. Their calculation for supplementation for 2012-13 would look like this:

Program funding amount x % SACS wage component x SACS ERO increase

$100,000 x 0.70 x 0.0078 = $546

South Australia

A community legal centre receives $150,000 from the Australian Government through the Community Legal Services Program. Their calculation for supplementation for 2012-13 would look like this:

$150,000 x 0.75 x 0.0164 = $1,845

Victoria

A non-government organisation located in Victoria receives $100,000 Commonwealth funding under the Support for Day to Day Living Program. Their calculation for supplementation for 2012 -13 would look like this:

$100,000 x 0.70 x 0.0152 = $1,064

What if my organisation is funded by a state or territory government?

The Australian Government is continuing to work collaboratively with all state and territory governments to ensure a smooth implementation of the equal remuneration order.

Organisations that receive funding through Commonwealth-State Agreements can read more about these agreements at Commonwealth-State funding arrangements explained.

Organisation funded directly by a state or territory government should direct any questions about eligibility and funding to the relevant Funding Agreement Manager in the relevant state or territory government.

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