ACIRT stands for Australian Construction Industry Redundancy Trust. It was created in 1994 to create security of payment for redundancy entitlements for workers in the construction industry. The Fund enable employers to fund their employees’ redundancy entitlements as provided for under various industrial awards and enterprise agreements through the payment of contributions, calculated on a weekly basis, paid monthly in arrears.
How ACIRT Works
ACIRT is a trust. The operations of ACIRT are governed by a trust deed. The trustee of ACIRT is a company called ACIRT Pty Limited which has a Board of Directors made up of equal trade union and employer organisation representation.
Individuals become members of ACIRT when their employer (called a Participating Employer), if required to under an award or an enterprise agreement, pays in the first contribution to satisfy their employee’s redundancy entitlements. Once the Participating Employer has done this, a separate Member Account is established the Member’s name. Their account builds up every month as contributions are paid in and when the Member becomes Redundant (as defined in the trust deed) – they are entitled to be paid a benefit of the accumulated employer contributions in their Member Account, less any tax that we may be required by law to deduct.
Even if Member becomes redundant, benefit does not have to be claimed immediately, but extra tax may be payable if the benefit is not claimed within one year.
If a Member leaves one Participating Employer and goes to work for another employer who also has to pay redundancy contributions into ACIRT, the contributions paid will be credited to the Member Account we have already opened.
No fees or charges are currently deducted from Member Accounts and we undertake to give you at least ninety days notice of our intention to do so.
ACIRT will generally distribute all its annual income (after deducting all the expenses the trustee incurs in managing the trust) to eligible members. The income that members receive is calculated in the same way as many bank accounts, that is, on members’ average daily balance. Not all members will be eligible to receive a distribution – the trustee may, for example, decide to pay distributions to members where the distribution is going to be above a minimum amount. If a member receives a distribution, it will be taxable in the financial year it is received.