PSA Requests a Change to the Tax Treatment for the Sector Retention Payment

23 March 2018

Public Service Association (PSA) members in Domicilliary Care were disappointed that the Australian Tax Office did not find that the $15,000 Sector Retention payment was an ETP but instead it would be taxed at the normal salary rate.

This was despite staff being given the strong impression in the information sessions prior to 9 March 2018 that it would not be an issue. On behalf of members, the PSA immediately contacted DCSI with our concerns and urged the department to do everything possible to have this decision reversed. Our concerns were also raised at the Industrial Relations Forum on Wednesday 21 March 2018.

The PSA has written to Department of Human Services Chief Executive, Tony Harrison, about this matter. A copy of the letter is here.

We hope this issue will be resolved soon and will keep you informed of developments.