ACIRT provides the following employer benefits:
- It provides a vehicle that allows employers to fund their employee’s redundancy entitlements monthly rather than as a lump sum on termination of employment. In addition, monthly payments to ACIRT are a deductible tax expense and not subject to fringe benefits tax ‘FBT’.
- It provides for contribution flexibility. Employers can pay the minimum contribution necessary to fund the award redundancy entitlement, or they can elect to make higher contributions to provide employees with higher redundancy entitlements, as agreed to between the employer, relevant unions and employees through enterprise agreements. By funding monthly, employers can manage cash flows and budget this expense into their job costs.
- Employee entitlements are secure in the event the employer becomes insolvent because these contributions are held by the Trustee on behalf of all employees/members. Former employees can claim their full accumulated account balance on termination of employment.
- Large employers who have a Pay-Roll Tax liability will benefit because ACIRT contributions are not classified as ‘wages’ in all states except WA.