30 April 2020 - Update to Incolink Worker Members

Posted on Apr 30, 2020

As the construction industry continues to play a vital role in how Australia responds to the COVID-19 threat. You should be proud of yourselves and of our industry.

COVID-19 Measures

This week we’ve announced COVID-19 Testing on sites via the IncolinkBus. Find out more about the tests here.

We were the first fund to put in place COVID-19 payments so workers made to stay home because of site closure or directed self-isolation can get income support.

Genuine Redundancy Claims and Staged Payments

As promised, genuine redundancy claims can now be made without tax withheld via our streamlined Incolink Redundancy Account. These claims can now be made via WorkerLink and the Incolink app.

Staged payments have been in effect since 27 March, meaning we can manage the fund so all workers can the support they need, when they need it.

Incolink is required to follow the law and this means we must withhold tax on certain payments. We've put together a summary of the claim types, maximum claim limits, tax rates and staged payments examples under this announcement.

What this all means is that our accounts system is simpler, and no member is paying extra tax.

Every member will be able to access the full amount in their account and Incolink is the largest, most sustainable fund in the industry with a full range of services to support you.

We are there 24/7 to provide counselling services, deliver the best insurances and provide industry-leading wellbeing services, on-site.

We’ll continue to be your safety net and keep you informed with updates and system changes.

Incolink Redundancy Account – Claim Types, Limits and Applicable Tax rates

Note: Claims are limited to the Maximum Claim Limit or the balance of funds in your account (whichever is lower). If you remain eligible to claim and funds remain in your Incolink Account, you will be able to make subsequent claims 4 weeks after your initial claim.

Reason for ClaimMaximum Claim LimitTax applicable on initial claimTax applicable on subsequent claim
Genuine Redundancy$8,000Nil up to the tax-free threshold*Nil up to the tax-free threshold*
Site Closure or forced to self-isolate due to COVID-19#$2,00032%32%
Termination$8,00032% or 17% if reached preservation age^32% or 17% if reached preservation age^
Resignation$8,00032% or 17% if reached preservation age^32% or 17% if reached preservation age^
Promotion ‘off the tools’$8,00032% or 17% if reached preservation age^32% or 17% if reached preservation age^
Retirement$8,00032% or 17% if reached preservation age^32% or 17% if reached preservation age^
Leaving Australia$8,00032% or 17% if reached preservation age^32% or 17% if reached preservation age^

*Tax free thresholds for Genuine Redundancy Payments are set by the ATO and is calculated based on several unique factors including years served with employer. Incolink recommends members seek independent financial advice when making a genuine redundancy claim. Tax rate applied to amounts above the tax free threshold is 32% or 17% if reached preservation age^.
#Eligibility criteria apply to Incolink COVID-19 Payments. Please read the criteria to ensure you are eligible before making a claim.
^The preservation age is set by the ATO and is a sliding scale based on date of birth. Please refer to the ATO website for information regarding the preservation age.

Staged Payments and Genuine Redundancy Claims

What happens if I am made genuinely redundant, I claim an initial $8,000 and then find a new job?

We've created some case studies to illustrate this scenario:

Scenario A – Worker remains out of work after claiming

Worker A has an account balance of $20,000 and is made genuinely redundant.

Worker A makes a genuine redundancy claim and receives their first $8,000 payment. This leaves $12,000 in their Incolink account.

28 Days after the initial claim, Worker A finds themselves still without work and claims an additional $8,000 payment from their Incolink Account. In another 28 days, Worker A can claim the remaining $4,000 in their Incolink account.

Scenario B – Worker finds work outside the industry after claiming

Worker B has an account balance of $24,000 and is made genuinely redundant.

Worker B makes a genuine redundancy claim and receives their first $8,000 payment. This leaves $16,000 in their Incolink account

1 week later, Worker B finds a new job outside of the industry meaning they are no longer receiving Incolink contributions.

Worker B has 2 options regarding their remaining balance:

  • Option 1 - 28 days after the initial claim, Worker B decides they would like to continue receiving their redundancy payout and claims an additional $8,000. This leaves $8,000 in their account which they can claim in another 28 days time.
  • Option 2 - Worker B decides that because they're earning an income, they'll keep some funds in their Incolink Account for when they need it most.

Scenario C – Worker finds work outside the industry after claiming

Worker C has an account balance of $16,000 and is made genuinely redundant.

Worker C makes a genuine redundancy claim and receives their first $8,000 payment. This leaves $8,000 in their Incolink account

1 week later, Worker C finds a new job inside the industry meaning they are receiving Incolink contributions again.

Worker C has 2 options regarding their remaining balance

  • Option 1 - 28 days after the initial claim, Worker C decides they would like to continue receiving their redundancy payout and claims an additional $8,000. This brings their original balance to zero. Even though Worker C will have new contributions made to their account, they will be unable to claim any new contribution made after their original end employment date
  • Option 2 - Worker C decides that because they're earning an income and receiving contributions again, they'll keep the remaining funds in their Incolink Account for when they need it most.

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