Employee entitlements review

Update on staff remediation payments - October 2025

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• Fair Work Ombudsman

  How is UTS working with the Fair Work Ombudsman?
  UTS has been engaging with the Fair Work Ombudsman on an ongoing basis since the initial self-disclosure in May 2021. The university has a written agreement known as an enforceable undertaking to ensure all staff receive their employee entitlements. An independent audit will take place at the conclusion of UTS investigations as well as appropriate online training for staff.

  The university is also working closely with the Tertiary Education Quality and Standards Agency (TEQSA), the Australian Taxation Office (ATO), Revenue NSW, relevant unions and the Audit Office of NSW.

• Payments, tax, interest and superannuation

  What does the remediation payment include?

  The payment comprises:

  1. The wage shortfall amount;
  2. Interest accrued on the shortfall amount;
  3. Applicable superannuation contributions; and
  4. Interest on the superannuation contributions.

  How will current staff members receive their payment?

  If you are currently employed by UTS, your remediation payment, being the shortfall amount less applicable taxation  plus interest, will be paid via payroll system  into your nominated bank account in October 2025.

  What is the process for former staff members?

  Affected former staff members will be contacted shortly to begin the payment process. This will include verifying identity and providing updated bank details for payment.

  How was the interest calculated?

  Interest on the shortfall amount is calculated in line with the Federal Court guidelines. The interest is calculated from the day when the shortfall occurred to the payment date.

  How is the payment taxed?

  • The shortfall (back payment as per payslip  component will be taxed at a flat rate of 34.5% for residents and 32.5% for foreign residents for taxation purposes.  
  • If you are a resident for tax purposes, the interest component will not have a tax withholding applied , but you are required to report it to the Australian Taxation Office (ATO) as assessable income.
  • If you are a non-resident for tax purposes, withholding tax will be deducted at a flat rate of 10% in accordance with ATO guidelines.

  How do I report the interest component to the ATO?

  The interest amount will be recorded on your pay slip. UTS will not withhold tax on this portion for Australian residents for tax purposes.  

  This is not intended to be financial advice. You should seek your own advice according to your personal circumstances.

  Staff should consult their financial advisor for advice on how to manage the interest declaration.
  
  Does the payment impact my current financial year’s earnings and therefore thresholds for tax and superannuation for this year?   

  Shortfalls greater than $1,200 and are prior to the current financial year, will be recorded on your income statement under the relevant financial year under Lump Sum E.

  Will superannuation be paid on the remediation amount?

  Yes. Superannuation will be paid on any ordinary time earnings, in line with UTS’s obligations under the Superannuation Guarantee and will be transferred to your nominated fund. If no super fund is nominated, the money will go to the default fund, UniSuper. 

  What action is required by me to receive the payment?

  • Current staff members: No action is required as the payment will be made to your nominated bank account.
  • Former staff members: You will receive instructions shortly on how to verify your details and submit your application for payment. 

  Could this superannuation payment contribute to the superannuation threshold this financial year?

  Yes, the superannuation component of your wage remediation payment will count toward your concessional contributions cap for the financial year when the payment is made. 
  
  Additional information can be found at the ATO website: Concessional contributions cap | Australian Taxation Office (ato.gov.au)

  What if I am no longer an Australian resident for tax purposes?

  If you are classified as a non-resident, UTS will apply the appropriate withholding tax of 10% on the interest component.  You may need to consult a tax advisor regarding your reporting obligations.

  Does this impact my thresholds for family tax / childcare / other rebates?

  Services Australia uses your adjusted taxable income (ATI) to assess eligibility for certain payments and obligations. ATI includes your assessable income for the relevant financial year, and therefore, any back payments you receive may be factored into your income tests.

  If the payment is a lump sum—such as back pay from employment—you must notify Services Australia within 14 days of receiving it. This allows the lump sum to be assessed over the appropriate period for income test purposes, rather than being counted entirely in the fortnight it was received.

  Will this payment affect my current UTS pay or entitlements?

  No. The remediation payment is a separate adjustment and will not affect your ongoing salary, leave balances, or other entitlements.

  Could I receive more than one remediation payment?

  Possibly. The university continues the Employee Entitlements Assurance Review so there is a possibility that you may be entitled to future payment. You will be contacted directly about any future payments if eligible.

  Can the university provide me with advice on the financial implications of the payment?

  No, the university does not provide personal financial advice. You may wish to seek advice from your personal financial advisor.

  Will the university make remediation payments to deceased estates?

  Where a remediation payment is owed to a former staff member who is now deceased, the amount will be payable to the deceased estate.
  
  What if I have questions about my specific payment?

  You can contact the dedicated wage remediation support team via email at wage.remediation@uts.edu.au. 

• Detailed background

  For several years, UTS has been undertaking a comprehensive review of staff payments (wages, entitlements and superannuation) to ensure compliance with the relevant enterprise agreements. As errors have been identified, steps to remediate have been taken and this work is ongoing.

  Summary of events and actions to date
  

  • Toward the end of 2019, with several Australian universities identifying issues with payment of superannuation, UTS proactively engaged Deloitte to assess its compliance with staff superannuation payments since 2014 with the Superannuation Guarantee Act, the UniSuper Trust Deed and UTS’s enterprise agreements. Deloitte’s review had two stages: the first looked at statutory compliance with the Superannuation Guarantee; the second looked at contractual arrangements above the Superannuation Guarantee.
  • It was identified that some current and former staff were underpaid a combined amount of around $1m of superannuation between July 2014 and March 2021 (an error of 0.4% of the total superannuation payable by UTS over the period). Underpayments were remediated, with interest, in two payments – the first (November 2020) to remediate underpayments against the Superannuation Guarantee Act which averaged $155 (excluding interest and on-costs) per impacted staff member. A second and final payment, to remediate underpayments against the UniSuper Trust Deed and UTS’s enterprise agreements, was issued in July 2021 and interest was calculated up to payment dates.

  Wages review

  • Early in 2021, while configuring a new payroll system, a potential issue was identified with regard to the payment of some professional casual staff – specifically with respect to the three-hour minimum shift payment entitlement. Underpayments over a six-year period were identified and these underpayments were self-reported to the Fair Work Ombudsman. UTS agreed to an enforceable undertaking and commenced remediation payments to affected casual professional staff, plus superannuation and interest.
  • At the time of the enforceable undertaking, the total underpayment equated to $4.4M and affected 2777 current and former casual professional staff (an average of $1,584.44 per staff member). Related superannuation costs of $235k and $1.1M in relation to interest, were also identified. These payments have been remediated in full.
  • The enforceable undertaking with Fair Work included a commitment to a broader review of compliance with the relevant enterprise agreements. As part of this commitment, over 2023 and 2024, UTS completed further reviews of ‘agreed hours’ employee entitlement for remaining staff cohorts and reported to the FWO $3.9 million in additional reparation payments.
  • As part of the broader review of compliance with the relevant enterprise agreements, UTS reported to FWO underpayments of $3.51 million and commenced payments from October 2025.  These payments related to a full review of all payments made to academic and senior staff cohorts over the review period.
  • The extent of the compliance review continues and the final full remediation amount will be identified following completion of the review of all payments made to professional staff, anticipated by mid-2026.
  • Measures have been taken to prevent a reoccurrence and system changes have been implemented in line with the new Enterprise Agreement.
  • The university remains committed to paying staff correctly and fulfilling all our obligations under the Enterprise Agreement.