- How did MSF calculate the interest and superannuation payments?
Interest was applied to payments using the RBA rate plus 4%. For Australian field workers, MSF will be paying superannuation of 9.5% on the total additional payment and interest, into your elected superannuation fund. For the fieldworkers from New Zealand the equivalent amount will be paid.
- I do not want to receive that money – can I give it back?
- How can I be sure I will be paid the Australian minimum wage from now on?
In December 2019 MSF changed all salary grids so that the minimum payment is above the Australian “minimum wage” stated by the Fair Work Commission. It was adjusted again in July 2020 to reflect the latest change to the minimum salary.
- Will this payment be taxed?
Most of this pay is tax exempt. Only payments received on very short missions and the interest component is taxable. Any payments that are taxable will fall into the 2020/21 tax year.
Australian Fieldworkers are exempt from income tax under Section 23AG of the Income Tax Assessment Act 1936 (ITAA 1936) for their MSF work when they are engaged in continuous service for 91 days or more. This exemption also applies to these historical payments for wages, however any interest that has been paid on the payment is taxable. For NZ fieldworkers, no tax will be deducted from the pay or interest because of their non-resident status.
The team that have been preparing the payment amount have calculated the components of your pay which are taxable and those which are tax exempt. At the end of the financial year you will be provided with two separate payment summaries: one “Foreign Employment Payment Summary” for the exempt income, and the standard STP1 summary for taxable income.
- Will MSF provide me with a separate “Foreign Employment Payment Summary” going forward?
Please note that going forward your year-end summaries will be prepared to match the circumstances of your particular field assignments. For example, if your field assignment was longer than 91 days you will only be provided with the “Foreign Employment Payment Summary”.
- When will I receive the money?
The first payments will be made from 30 October and can only be made once we have confirmation of your bank account details and superannuation fund.