There has been a decision regarding tax treatment of the second Transfer Incentive Payment. On 7 August 2019, the Australia Taxation Office (ATO) issued a decision about the Transfer Incentive Payments (TIP).
The TIP was hard fought and won by HACSU members as part of the transfer of disability services from the DHHS to the non-government providers.
The decision dictates that the second TIP will receive favourable tax treatment and be taxed at a reduced rate.
Just to remind you: this payment will be received at the point you formally transfer to the new providers on 1 January 2021.
For those of you yet to begin secondment, you will not yet have received your initial TIP. As a reminder, the ATO decided that it is classified as income and will be taxed at your marginal rate of tax.
If you’d like to read the ATO decision, you can click here or go to: https://bit.ly/33ChtEU
If you have any further questions, you can contact your Transfer Organiser on 1300 651 931 or 9340 4100 and press option 1.