Federal Court action and payment updates

To keep you informed, there are a few Enterprise Agreement matters that we want to bring to your attention.

Federal Court action

Sydney Trains, NSW TrainLink and the Australian Rail, Tram and Bus Industry Union (RTBU) have agreed to discontinue both sets of proceedings in the Federal Court in relation to the Opal gate matter.

Our focus is on the implementation of the new Agreement and to deliver you the benefits under the new Enterprise Agreement to which you are entitled.

One-off payment on your pay slip

You will have noticed the one-off payment of $4,500 was coded as ‘backpay’ on your pay slip. This is because it was the most relevant code available in the payroll system. Please note though this is your one-off payment.

Tax treatment of the one-off payment

The Australian Taxation Office (ATO) treats the one-off payment of $4,500 payment as gross income. The tax applied to your gross income is based on your individual circumstances and will vary from person to person.

Please consult with your financial adviser for tax advice applying to your situation. The ATO website has detailed information on how tax is applied in different scenarios.

It’s important to note, the amount of tax you pay can also vary based on factors such as:

  • your gross income any pre-tax deductions – such as salary sacrificed or workplace giving deductions
  • any study or training support loans
  • any tax-free thresholds or tax offsets
  • the Medicare Levy

The following example has been developed to illustrate how taxation is calculated based on an individual’s circumstances:

John is paid fortnightly and, has both pre-tax and post-tax deductions and a study loan.

  • John’s Gross Earnings this pay is $6,500.
  • John has a Pre-Tax Deduction of $20 per pay.
  • John’s Taxable Gross for this pay is $6,480.
  • This makes John’s Year to Date Earnings $110,500
  • A Year-to-Date salary of $110,500 puts John in the 4th tax bracket ($120,001 - 180,000) – see Resident Tax Rates 2022-23.
  • Marginal Tax is calculated as $1,954, plus:
  • Therefore, John’s total Tax paid for this pay is $1954 + $648 = $2602

This information has been added to the FAQs on Stay Informed.

If you have any questions, please refer to the FAQs or email STenterpriseagreement@transport.nsw.gov.au.