Factsheet

Remuneration fact sheet for staff and organisations

Fact sheet for staff and organisations.

Last updated: 11 August 2023
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What is engagement?

Practices that involve consumers, carers or communities participating in health service decision-making, policy development, service design, delivery, and evaluation. There are different levelsof engagement.

What is remuneration?

Financial recognition for individual consumer, carer and community members who are invited to participate and contribute to NSW Health activities. A participation payment is a type of honorarium payment. This is a payment for volunteers, which is not the same as a casual wage or consultant fee.

Remuneration is different to reimbursement of out-of-pocket expenses. Remuneration is made at the discretion of NSW Health organisations and is not legally required or expected.

Why does NSW Health remunerate consumer, carer and community members?

NSW Health is committed to partnering with consumers, carers and communities. When we listen to and learn from people with lived experience, we can improve the safety and quality of our health services.

NSW Health recognises that time commitments and other costs can be a barrier to community and consumer participation. Remuneration provides a means of recognising lived experience expertise and aims to make it easier for people to contribute to engagement and improvement activities. Payment also aims to increase the diversity of people who choose to engage with NSW Health organisations.

How much is paid?

The guideline for Consumer, carer and community member remuneration recommends a rate of $40 per hour. Where the individual is engaged to chair or lead committees, the recommended rate is $60 per hour. A daily rate is also provided, which aligns with the NSW Public Service Commission's Classification and Remuneration Framework for NSW Boards and Committees(Level C1). Daily rates may be subject to change in accordance with the Framework.

The recommended rates are based on a review of paid participation policies from across Australia. The recommended rates provide a baseline and do not prevent NSW Health organisations from paying higher rates.

How is remuneration made?

NSW Health organisations must establish local processes to facilitate the submission, coordination and processing of remuneration payments. The process may vary between NSW Health organisations. Below is an example of how to remunerate consumer, carer and community members:

Example

  1. The NSW Health project lead or delegate sets up the consumer, carer or community member as a vendor in StaffLink. A step-by-step guide to confirm a vendor in StaffLink and register a new supplier is available at SARA - Create a New Vendor in StaffLink.
  2. As part of establishing the consumer, carer or community member as a vendor, the individual will need to complete an Australian Tax Office Statement by Supplier Form and submit this to the project lead or delegate (this form does not apply if the individual has their own ABN).
  3. Following completion of the activity, the project lead or delegate completes a NSW HealthShare Form - Invoice Scanning Payment Requisition Form Oracle R12. This will open an Excel document. Using the dropdown boxes, select the "Operating Unit" (i.e. organisation) and then "HA and Patient/Non-Employee reimbursement".
  4. Once the Invoice Requisition Form is complete, click the 'email to AP' button at the bottom of the page. An email will autogenerate to Accounts Payable. The project lead or delegate submits the email with the completed Invoice Scanning Payment Requisition and supporting documentation (e.g. confirmation email, attendance minutes, local remuneration record form or invoice) to process the payment.

Can remuneration be made by using gift cards and vouchers?

Gift cards and vouchers are not recommended for remuneration. However, there will be some individuals that do not have a bank account and may need to be paid in other non-electronic methods. In such cases, careful documentation of all monetary and non-monetary payments is required, including signatures on receipt of payment and when passing responsibility for funds internally within health.

Is remuneration tax assessable income?

Whether a payment is assessable income will depend on the nature of the payment, and the volunteer's circumstances(Refer to Paying volunteers).

The following are examples of when income is 'not assessable':

  • The payment is not received as a consequence of employment.
  • The payment has no connection to the volunteer's income-producing activities or services.
  • The payment is not relied upon or expected by the volunteer for day-to-day living.
  • The payment is to meet incurred or anticipated expenses.
  • The payment is not legally required or expected.
  • There is no obligation on the part of your organisation to make the payment.

Payments that are not assessable income are often referred to as honoraria, reimbursements or allowances. When a completed Australian Tax Office Statement of Supplier Form is submitted, remuneration made as an honorarium is not considered assessable income. The completed Statement of Supplier form is used when services are provided without quoting an ABN and needs to state that the supply of services is made during an activity done as a private recreational pursuit or hobby. For Australian Tax Office definitions and form, refer to Statement by a supplier not quoting an ABN.

Does remuneration mean consumers, carers and community members are like a staff member?

The Australian Taxation Office provides detailed guidance on the difference between employees, independent contractors and volunteers for not-for-profit organisations (Types of not-for-profit workers).

In regard to taxation, consumers, carers and community members partnering with NSW Health are considered to be volunteers. Remuneration to these individuals in the form of an honorarium is considered financial recognition for time and contribution and is not a salary.

Can individuals decline the remuneration if they chose?

Some individuals may prefer not to be reimbursed or paid for their time. This is their choice. The offer can be made and recorded as declined. The offer can be extended again at a later time.

What checks are mandatory to onboard consumer, carer and community members?

All NSW Health organisations must establish systems to ensure that all workers are appropriately assessed, screened and vaccinated to minimise the risk of transmission of vaccine-preventable diseases. Local processes should align with NSW policy Occupational Assessment, Screening and Vaccination Against Specified Infectious Diseases.

The NSW Health policy Working with Children Checks and other Police Checks outlines the checks required for volunteers and other types of engagements. The decision to undertake a National Police Check for any types of engagement not described by this Policy Directive should consider the following:

  • The length of the engagement
  • Whether the engagement involves direct patient contact
  • Any protective factors that are in place to mitigate risks.

Is it possible to claim reimbursement for out-of-pocket expenses in addition to remuneration?

Remuneration is financial recognition for individual consumer, carer and community members who are invited to participate and contribute to NSW Health activities. Costs for out-of-pocket expenses is a separate aspect of participation and covers such things as travel, carparking and accommodation (as required).

Current as at: Friday 11 August 2023
Contact page owner: Patient Experience