SACS Funding Supplementation – Frequently Asked Questions
Q: How can my organisation use supplementation?
A: Organisations can only use supplementation funding to cover costs arising from the Equal Remuneration Order (ERO). These costs include: staff wages that have directly increased for the affected Commonwealth program, as well as staff on-costs (i.e. superannuation and leave entitlements) which may have increased because of the ERO.
Q: My organisation pays staff above the Equal Remuneration Order - do we need to pass on the supplementation as a further wage increase?
A: No. If an organisation already pays staff at a rate equal to, or above, the Equal Remuneration Order (ERO), supplementation funding should be credited against the ERO amount.
If private funds are freed up, they can be spent in any way that the organisation determines. If government funds are freed up, these can only be spent in accordance with the grant agreement.
For example, an organisation pays $100,000 for SACS wages and on-costs—they already pay their staff above the SACS Modern Award rate. The Equal Remuneration Order (ERO) cost to this organisation is $1,500. The organisation receives a supplementation offer of $1,500 from the Commonwealth Government to cover the ERO costs. As this organisation already pays staff above the SACS Modern Award, the organisation credits its $1,500 supplementation against ERO costs, and this frees up $1,500 that was previously used for wages, which can now be used for other expenditure. The organisation is not required to pass on the extra $1,500 as an additional wage increase.
Q: What does my organisation need to do to acquit the funds?
A: The grant agreements provided to eligible organisations provide details on whether organisations need to complete a financial declaration, a non-audited financial acquittal or an audited financial acquittal to advise the government that supplementation was spent to meet the costs of the Equal Remuneration Order. Organisations should keep appropriate records that would satisfy their auditors the funds were spent as required. If an organisation doesn’t use auditors, they should keep accurate records as per their current grant agreement.
Q: How does the Australian Government provide funding supplementation to organisations?
A: The Government provides supplementation to eligible organisations using a simple, equitable and transparent process. Current grant agreements for in-scope programs with eligible service providers include a SACS supplementation component.
Q: How do I know if my organisation is eligible for funding supplementation?
A: An organisation is eligible to receive Australian Government funding supplementation if:
- it receives Australian Government funding directly from the Commonwealth or through a Commonwealth-State agreement; and
- the funding is provided to deliver one or more of the programs in scope; and
- it currently employs workers affected by Fair Work Commission’s decision
Q: How much additional funding will my organisation receive?
A: Eligible organisations receiving funding from the Australian Government are provided with supplementation as specified in their grant agreement. When calculating the amount of funding supplementation an organisation receives, the Government considers the following:
- The value of the grant agreement
- The average (SACS) wage component of a program
- The Equal Remuneration Order wage increase
Q. How will funding supplementation be provided for new policy proposals or election commitments?
A: SACS supplementation will not extend to new programs that did not exist in February 2012. As new policy proposals and programs are developed, SACS wage costs (at the relevant award rate) will be factored into the baseline program funding.