The Health Services Union (HSU) is calling on the Federal Government to urgently intervene as Healthscope, Australia’s second-largest private health provider, exploits charitable tax concessions to force workers to hand over their benefits to pay the company’s debts.
The union has written to Treasurer Jim Chalmers and Health Minister Mark Butler demanding immediate action to stop Healthscope from misusing salary packaging arrangements designed for genuine not-for-profits.
“Healthscope wants workers to hand over 90 per cent of their salary packaging benefit so the company can pay down corporate debt. That’s an unprecedented attack on a crucial entitlement that workers at non-for-profits deserve,” said Kate Marshall, HSU Senior National Assistant Secretary.
Under the proposed scheme, Healthscope’s almost 20,000 workers could receive salary packaging benefits worth up to $11,660 per year, but would be forced to return 90% of this amount – approximately $10,494 – directly back to Healthscope.
The arrangement could cost Australian taxpayers up to $200 million annually in lost revenue.
“Taking money directly from workers’ pockets to rort the tax system is an appalling and unacceptable plan,” Marshall said.
“This is an unprecedented grab for millions of dollars taxpayers’ money – allowing this to go ahead would set a shocking precedent for workers and the federal budget.”
Healthscope, a company backed by one trillion US dollars in assets, has gained charitable status to access tax concessions originally designed to help not-for-profit public hospitals attract and retain staff during workforce shortages.
The company has been using threats and intimidation to pressure workers into accepting the scheme, telling staff that hospitals will close and jobs will be lost if they refuse.
“Workers should not be paying for Healthscope’s financial mismanagement. It’s simply not true to suggest hospitals are at risk unless this corporate cash grab goes ahead,” Marshall said.
The HSU is particularly concerned about the lack of any binding commitments from Healthscope about the future of these arrangements.
“If Healthscope pocketing 90 per cent of the entitlement is temporary then why is there no binding commitment to a fairer split in the future?” Marshall asked.
The union has called on the Federal Government to:
* Write to Healthscope outlining expectations that health workers receive the full benefit of any salary packaging scheme
* Inform the public and Healthscope workers about the cost implications of the arrangement
* Question the Australian Charities and Not-for-profits Commission (ACNC) on how for-profit companies are granted charity status
* Fast-track legislation allowing the ACNC to discuss active investigations
If approved, this scheme could set a dangerous precedent, becoming a blueprint for other private health providers to shift corporate debt onto workers while exploiting tax concessions meant for genuine charities.
“The HSU urges all Healthscope workers to vote against this deeply unfair proposal to ensure we send a clear message across the sector that we won’t accept blatant attacks on entitlements,” Marshall said.
Contact:
Matt Coughlan 0400 561 480 / matt@hortonadvisory.com.au
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