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. 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 funding agreement.
An example is provided at the end of this page.
Q: What does my organisation need to do to acquit the funds?
A: In the offers sent to eligible organisations, advice will have been provided on whether organisations need to complete a statutory declaration or other form of certification 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 per the certification or statutory declaration. If an organisation doesn’t use auditors, they should use keep accurate records as per their current funding agreement.
Q: How will the Australian Government provide funding supplementation to organisations?
A: The Government will provide supplementation to eligible organisations using a simple, equitable and transparent process. It will be provided to eligible organisations through an adjustment to existing funding agreements/grants.
Q: How do I know if my organisation is eligible for funding supplementation?
A: An organisation will be 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
- on 1 February 2012, it employed workers affected by Fair Work Australia’s decision
Q: Does my organisation need to apply to receive funding supplementation?
A: No, organisations do not need to apply for funding supplementation. Organisations with an existing Australian Government funding agreement/grant for an ‘in scope’ program have been provided with a revised funding offer.
Q: What does my organisation need to do to accept the offer?
A: To accept the funding offer, organisations must certify that on 1 February 2012 (the date of Fair Work Australia’s decision) they employed SACS workers affected by Fair Work Australia’s decision; and that funding will used to meet their wage obligation as determined by the Equal Remuneration Order.
Q: Will the Government need to consider each organisation’s business structure and staffing models?
A: No. The Government understands that different organisations employ a wide range of different business structures and models. While the Government will require organisations to certify it employs eligible workers, it will not require organisations to detail their business structure or staffing model.
Q: How much additional funding will my organisation receive?
A: Organisations will receive a funding offer from the Australian Government specifying the amount of funding supplementation. When calculating the amount of funding supplementation an organisation will receive, the Government will consider the following:
- The value of the existing funding agreement/grant
- The average (SACS) wage component of a Program
- The Equal Remuneration Order wage increase
Q: My organisation currently has a three year contract, will supplementation funding be provided for the whole funding period?
A: Yes, eligible organisations will receive a funding offer which provides funding supplementation for the full duration of the existing contract.
Q. How will funding supplementation be provided for new funding agreements/grants?
A: New funding agreements/grants for organisations with affected SACS workers will have levels of supplementary funding built in to the baseline contract amount.
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.