BREAKING NEWS: NSW Government Changes the Wages Rules

28-Jun-2013

BREAKING NEWS: NSW GOVERNMENT CHANGES THE WAGES RULES

The NSW Government changes the rules ...

The NSW Government this afternoon released an amending Regulation that would appear designed to have as its primary purpose to ‘contain’ and absorb increases to employer superannuation contributions within the 2.5% pa wage limit in place.  A further update will be provided next week as we undertake a more forensic and legal examination of the amended Regulation. 

However, it would seem that for all practical purposes the affect is to circumvent the decision of the Full Bench from earlier this week and mandate the absorption of superannuation increases within the 2.5% wages cap (as it, the Crown, argued in those proceedings). 

Hence we are now back at the 2.25% increase debate and how we should approach those employees who are members of defined benefit superannuation schemes. 

Check out the response released by Unions NSW in what it is calling an appalling lack of good faith”. 

Coincidently, arising from the decision of the Full Bench earlier this week, the parties were directed to discuss and identify agreement/differences prior to the next scheduled hearing on 5 July.  As a result, correspondence was sent out to the Ministry this morning with a number of queries from ASMOF, along with flagging that if the ‘rules were changed’, we reserved our position as to how we might respond to any ‘absorption’, especially as it relates to those members in defined benefit schemes.  Some interesting questions in the coming days/weeks ahead ...