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Last updated: 23 December 1996
Circular 1996/20: Outsourcing: Human resource managment principles, guidelines and good practice
Please note: This document is for reference purposes only and is no longer considered by the APS Commission to be current. It may contain good practice advice and/or advice on the transitional arrangements between the 1922 and 1999 Public Service Acts.
Corrigenda notice
Circular 1996/17 of 3 October 1996 advised agencies of the publication of a new booklet dealing with the human resource management aspects of outsourcing decisions in the Australian Public Service (APS).
2. A corrigenda notice has now been issued to clarify the superannuation entitlements of staff who are retired as a result of an outsourcing decision. The amendment will remove an inconsistency between section 1.7.1 in Part I and section 3.1 in Part 3 of the booklet.
3. The corrigenda notice replaces the fourth dot point on page 8 of the Outsourcing: Human Resource Management Principles, Guidelines and Good Practice booklet with the following:
- members of the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS) who are retired as a result of these processes would usually be entitled to PSS or CSS involuntary retirement benefits. However, persons who elect to accept employment with the new provider, or who reject offers of equivalent employment with the new provider, are not considered to have been involuntarily retired for superannuation purposes. (For further information refer to section 3.1 in Part Three of this booklet).
Taxation issues
4. Following the publication of the Outsourcing booklet, a number of agencies have raised queries about the taxation treatment of severance benefits made to staff under the Clean Break approach upon retirement from the APS where they accept a job with the new provider either immediately or shortly after the function is outsourced. The PSMPC is seeking clarification from the Australian Taxation Office on this issue and will provide further information as it becomes available.
Richard Harding
Structural Change Team Leader
December 1996
