THE FUND

The Australian Construction Industry Redundancy Trust (ACIRT) is a national fund established in response to requests from construction employers and unions. The fund enables employers to fund their employees' redundancy entitlements, as provided for under the various industrial awards and enterprise agreements. Employers can fund such entitlements through the payment of weekly contributions, which are paid monthly into the Fund on behalf of their employees.

The Fund has been specifically designed to meet the unique requirements of construction industry employers and their employees.

The Fund provides for contribution flexibility. Employers can pay the minimum contribution of $25.00 per week for their employees until the award redundancy entitlement is funded, or they can make higher contributions, to provide employees with higher redundancy entitlements, as agreed to between the employer, relevant union and employees through enterprise agreements.

Employers can also make higher contributions for employees who work on particular construction projects, which may be required as a result of contractual obligations.

EmployerAccess

Will allow you, the employer to process your monthly contributions in-house, terminate members, add new members and obtain instant member numbers on-line. To use this facility you must register with the fund administrator where your company will be given an individual user ID and password.

For more information refer to the ACIRT E-Business Booklet

THE BENEFITS

The Fund has been designed and structured to provide the following benefits:
 

a)

 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.
b) It provides for the security of employee redundancy entitlements.

REDUNDANCY

Redundant is defined in the Trust Deed as:

'The termination or cessation of employment of the member for any reason.'

Upon the employer and the member providing the administrator with the necessary details, payment is made direct to the member, either by cheque or electronic fund transfer, whichever method of payment is nominated by the member on the claim form. The administrator will process payment within 3 business days from receipt of the completed claim form.

TAXATION - FUND AND EMPLOYER

The Trustee has previously obtained Australian Taxation Office rulings and opinions that are being renewed. The current situation is summarised as follows:

1. ACIRT is a trust estate which will be subject to Division 6 of the Income Tax Assessment Act 1936 (ITAA36).Therefore ACIRT is not a non-complying superannuation fund for taxation purposes.
2. Employer redundancy contributions to the Trust will be allowable deductions under subsection 8 -1 of the Income Tax Assessment Act 1997 (ITAA97).
3. The Fund has been prescribed in regulation as an Approved Worker Entitlement Fund.
4. Employer contributions will not constitute taxable fringe benefits under the provisions of the Fringe Benefits Tax Assessment Act 1986 (FBTAA).
5. Employer contributions to ACIRT represent capital of the Trust and are not assessable income in the Trustee's hands.
6. Any annual income not distributed is taxed as undistributed income under section 99A of ITAA36 (that is trustee taxed).
7. The trustee has obtained a ruling from the New South Wales Commissioner ruling that Employer contributions to ACIRT do not attract Payroll Tax.

For more information, see your Employer Information Booklet