The Australian Government has undertaken a rigorous process to calculate its share of the wage increase. The Government has tested these calculations through a number of different processes. One of the ways the Government tested this, was 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:
^ 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, which 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
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
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
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.
If your organisation is funded directly by a state or territory government, you should direct any questions regarding eligibility and funding to your Funding Agreement Manager in your relevant state or territory government.