Joint salary packaging

IN what is believed to be a first for the WA public service, two salary-packaging companies have been awarded a joint contract to provide the WA Health Department salary-packaging services.

Paradigm Total Salary Management and Smart Salary were awarded the contract in December after the contract of the State Government’s sole salary packaging provider, MacMillian Shakespeare, ended.

The move is likely to provide WA Health Department employees with more competitive and innovative salary packaging as Salary Save and Paradigm vies for their business.

Up to 30,000 employees work for the WA Health Department, which includes Pathcentre and the Drug and Alcohol Office.

WA Health Department acting director of work force planning, Rob Lindsay, suggested there had been a whole-of-government move away from single salary-packaging providers because the industry had become more competitive.

He said competition was the reason for the Health Department’s decision to offer its contract to two providers.

“In terms of rates on offer or some of the incentives that Paradigm or Smart Salary might be offering staff to pick up their business, [employees] will get better service for staff and better bang for buck,” Mr Lindsay said.

“And we are already starting to see that in some areas.”

Paradigm chief executive officer Paul Devine said that, as the salary packaging market grew, more people had become aware of its benefits.

He said salary packaging was no longer just available to high-income earners and with salary package benefits Health Department employees stood to gain a potential pay increase of up to 20 per cent.

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