Cost of living adjustment payments
Queensland Teachers' Journal, Vol 128 No 4, 9 June 2023, page no.6
Members will be aware that the QTU negotiated a COLA payment in the 2022 Department of Education State School Teachers’ Certified Agreement, to offset the rising cost of living.
In each year of the agreement, if annual inflation* exceeds the wage increase under the agreement for the relevant agreement year, a COLA payment will be made to eligible employees in accordance with clause 6.2 of the certified agreement. This will:
- be at the end of the relevant agreement year
- be equal to the difference between annual inflation and the wage increase for the relevant agreement year, capped at 3 percentage points (3 per cent).
- have reference to base wages earned under the agreement during the relevant agreement year, excluding allowances or additional payments
- be a one-off lump sum not forming part of base salary and taxed according to the applicable law.
On 26 April, the Australian Bureau of Statistics released the annual inflation figures (https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/mar-quarter-2023).
In accordance with the certified agreement, the calculation date for payment is 30 June.
The COLA payment will be made to eligible employees by the end of August. The Department of Education will provide further advice about how and when this will occur.
*Brisbane Consumer Price Index, all groups, March quarter annual percentage change from the March quarter of the previous year, as published by the Australian Bureau of Statistics)