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Published: 8 Oct 2020
BIRST members will now have access to genuine redundancy tax treatment and will be able to enjoy increased nett redundancy payments.
From the 1st October 2020 BIRST - the Building Industry Redundancy Scheme Trust - has introduced changes that will see most workers that are terminated by their employer due to genuine redundancy receive their BIRST payment largely tax free (providing they are below the pension age).
If a member of BIRST is terminated for any other reason or you are above the pension age you will still be eligible to claim your benefit but it will be taxed at normal eligible termination payment rates.
BIRST members are not required to do anything to take full advantage of these changes.
CFMMEU, CEPU & MBA representatives on the BIRST board all voted unanimously in favor of amending the trust deed to provide a better tax rate for members in line with changes to redundancy trust funds around the country.
“These significant changes mean that building and construction workers will now receive the general Australian community standard for tax treatment on their redundancy payments”, said CFMMEU SA Acting Secretary and BIRST Chairperson Andrew Sutherland.
“For an average BIRST member, it will put thousands of dollars more in their and their families pocket in a genuine redundancy situation,” he said.
“I’d like to thank the BIRST executive and administration team, existing directors and particularly the newly appointed BIRST directors for squarely putting the interests of members first again during the challenging and difficult year the industry has faced so far during the 2020 COVID-19 pandemic.”
For full details and applicable tax rates go to: www.birst.com.au/employees.htm