The Trust
The scheme was established in 1989 to provide construction industry employees with a secure benefit at the time of redundancy, retirement, death or permanent disablement. All contributions are held in trust on behalf of members and invested according to the Deed Of Trust which provides that security of members entitlements is the primary objective. A Board Of Trustees manages the trust with equal representation by Union and Employer representatives.
Trustees have directed that the funds be invested in Government or Bank guaranteed securities. Investment earnings are used to recover the cost of administering the fund and the balance is directed towards training within the building industry. No fees are deducted from contributions.
Top Registering as an Employer
You must complete and sign an Agreement Of Adherence to register your company as an employer.
The Agreement Of Adherence is a legal document binding the employer to the Trust Deed and the obligations it sets out in respect of all members enrolled in the fund.
Agreement Of Adherence (PDF)
Top Registering Your Employees
Each eligible employee should complete a Membership Application form and after checking for completeness and accuracy the employer should send these to BIRST.
A membership card will be issued to each of your employees on receipt of the completed application form.
Membership Application (PDF)
Top Paying Contributions
The current contribution rate is $40 per week for each employee but this may vary from site to site or if you have an Enterprise Agreement with your employees.
On the 20th of each month an invoice will be generated and sent to you presuming that each of your registered employees worked the entire month on a BIRST site. Returns can also be sent and remitted electronically. This website provides the facility to enter your return online or if you would prefer the return can be sent as a spreadsheet.
If required you should amend the print-out to reflect the actual weeks due and the corresponding amount payable using the following guidelines:
Contributions are payable when an employee is on:
- Annual Leave
- Sick Leave
- Long Service Leave
- Bereavement Leave
- Jury Service
- Workers Compensation (52 week maximum)
- Part of a week on a BIRST site entitles the worker to a full weeks contribution.
- Contributions are not payable if an employee is on unpaid or unauthorised leave during the week.
If an employee has ceased working with you please indicate the termination date and adjust contributions accordingly.
An employee commencing with an employer is entitled to contributions for the first week providing they complete the week. An employee ceasing employment is not entitled to contributions for the last week unless they work the full week (eg. works Friday).
If an employee has changed address please advise us.
New Employees should be added at the bottom of the invoice and a Membership Application form attached.
The original of the invoice together with a cheque for the contributions should be forwarded to BIRST by the 14th of each month. Please retain the duplicate for your records.
If you have no employees entitled to contributions write “NIL” on the invoice and return the original to BIRST.
Top Termination of Employment
On termination of employment the employee is entitled redundancy unless dismissed for misconduct or if the employee resigns and has worked fewer that twelve months.
The amount payable is the amount held in Trust by BIRST, or the amount specified under the relevant award, whichever is the greatest. For award provisions please contact the Department Of Labour or your employer organisation.
When an employee is terminated the employer should complete a BIRST Redundancy Claim Form and give it to the worker. The employee then completes the "Worker To Complete" section of the form and submits it to BIRST to enable payment.
Redundancy Claim Form (PDF)
Top Taxation
In July 1991 the Deputy Commissioner Of Taxation ruled that redundancy payments through BIRST were not bonafide redundancy payments.
This has resulted in all payments being taxed as follows:
| Under 55 years | 31.5% | (30% tax and 1.5% Medicare levy) |
|---|---|---|
| Over 55 years | 16.5% | (15% tax and 1.5% Medicare levy) |
If not provided with a Tax File Number the payment should be taxed at 46.5%.
If the employer pays the worker it is employers responsibility to deduct tax from redundancy payments and provide the employee with an ETP Payment Summary. If BIRST pays the worker we will deduct the tax and issue the ETP Payment Summary.
ETP Payment Summary
BIRST will issue the ETP Payment Summary if the payment is made by BIRST directly to the worker.
Goods & Services Tax
Under the Goods & Services Tax Legislation BIRST is considered to be supplying an “interest in a managed investment scheme” to employees. This is considered a financial supply and therefore, input taxed - which means that no GST is payable by BIRST for such supplies and that BIRST will not charge employers any GST on their contributions.
Top Payments to Employees For Reasons Other Than Redundancy
If employee’s contributions are not paid on termination application may be made direct to the Trust for payment under the following criteria:
- Retirement - after attaining 55 years of age.
- Permanent Exit From The Industry - paid after a qualifying period of 39 weeks.
- Death - paid to the members estate.
- Permanent Disability - upon receipt of Medical confirmation.
- Financial Hardship - unemployed for a minimum of four weeks and registered with an employment agency or Centrelink.
Top Other Information
Statements
The Fund will provide both the employer and the employees with regular statements detailing the amount of contributions received, amount reimbursed and the current balance. These are also available on request.
WorkCover
Contributions to BIRST are not included in total remuneration when calculating the WorkCover levy payable.
Income Tax Deductibility
Contributions made by an employer to BIRST are deductible to the employer under Section 51(1) of the Income Tax Assessment Act.
Superannuation Guarantee Charge
BIRST is not included in normal wages for the purpose of calculating the superannuation guarantee charge.
Payroll Tax
BIRST contributions are taxable for payroll tax purposes if the employer exceeds the payroll threshold
Fringe Benefits Tax
BIRST is an Approved Worker Entitlement Fund under the Fringe Benefit Tax legislation. Changes have been made to FBT laws that affect employers who make payments to worker entitlement funds. These changes take effect from 1st April 2004.To ensure that contributions are exempt from FBT you must have a registered industrial agreement in place that specifies the amount to be contributed on behalf of each employee.
If you have a registered agreement in place and make payments above the amount specified in the agreement, you will be required to pay FBT on the amount above the specified agreement.