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NSW STATE
EMERGENCY SERVICE
VOLUNTEERS
ASSOCIATION
“Constructing a Road Map for the
Betterment of the NSW State
Emergency Service”
NSW SES VA
Election Policy
2015
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NSW State Emergency Service
Volunteers Association
© NSW State Emergency Service Volunteers Association (NSW SES VA). You may copy, distribute, display,
download and otherwise freely use this work for any purpose, provided that you attribute the NSW SES VA as the
owner. However, you must obtain permission from the NSW SES VA if you wish to charge others for access to the
work, or include the work in advertising or a product for sale, and also if you wish to modify the work.
This Election Policy document is available on the NSW SES VA website nswsesva.org.au
Disclaimer: This policy document has been prepared by the New South Wales State Emergency Service
Volunteers Association for general information purposes. Whilst every care has been taken in relation to its
accuracy, no warranty is given or implied.
Constructing a Road Map for the Betterment
of the NSW State Emergency Service
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Contents
Executive Summary .......................................................................................................................................... 4
Introduction ...................................................................................................................................................... 6
About the NSW State Emergency Service ........................................................................................................ 9
1. NSW State Emergency Service Governance ........................................................................................... 11
1.1. Independence of the State Emergency Service ............................................................................... 11
2. Budget and Finances............................................................................................................................... 12
2.1. Budget ............................................................................................................................................. 12
3. Regional Training Centres ....................................................................................................................... 14
3.1. Permanent Training Facilities .......................................................................................................... 14
4. NSW State Emergency Service Volunteers ............................................................................................. 15
4.1. Off set costing of volunteering ........................................................................................................ 15
4.2. Emergency Service Leave ................................................................................................................ 15
4.3. Support for Employers of SES Volunteers ....................................................................................... 16
5. State Emergency Service Staffing ........................................................................................................... 17
5.1. Recruitment of Staff from Volunteer Ranks .................................................................................... 17
6. Functional Capacity ................................................................................................................................ 18
6.1. NSW SES Core Roles need to remain under NSW SES Control ........................................................ 18
7. Deductible Gift Recipient........................................................................................................................ 19
7.1. Deductible Gift Recipient (DGR) Status for NSW SES VA ................................................................. 19
8. Workers Compensation .......................................................................................................................... 20
8.1. Workers Compensation for NSW SES Volunteers ........................................................................... 20
9. Amendments to the State Emergency Service Act 1989 as amended from time to time ..................... 22
9.1. Amendments to the State Emergency Service Act 1989 relating to the VJCC Act 2010 ................. 22
9.2. Amendments to the State Emergency Service Act 1989 to volunteer interests. ............................ 22
9.3. Amendments to the State Emergency Service Act 1989 relating to Volunteer Controller
appointments .............................................................................................................................................. 23
9.4. Amendment or Otherwise to the State Emergency Service Act 1989 relating to Volunteers ........ 23
The Rising Costs of Volunteering .................................................................................................................... 25
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Executive Summary
The New South Wales State Emergency Service Volunteer Association (NSW SES VA)
represents, and is governed by the 8,600 volunteer members of the NSW State Emergency
Service (NSW SES). The NSW SES is an emergency and rescue service dedicated to assisting
NSW communities for floods, storms and tsunamis and will have been established for 60 years
in 2015. The NSW SES also provides the majority of general rescue effort in the rural parts of
the state which includes road accident rescue, vertical rescue, bush search and rescue,
evidence searches (both metropolitan and rural) and other forms of specialist rescue that may
be required due to local threats. Volunteers in a number of isolated communities have been
trained as Community First Responders by the Ambulance Service of New South Wales. The
Service's trained rescuers also support the full-time emergency services during major
disasters.
This Service has evolved to become the most versatile emergency response agency in NSW
and this evolution has been built on volunteerism with a minimum paid employee support
base.
The NSW SES VA believes that the volunteer culture that has helped the SES become what it is
today is in danger of being replaced with a Service that could eventually be built around paid
employees. The NSW SES VA accepts that management needs to keep improving the Service to
meet Community and Government expectation; however some of the volunteers believe that
this improvement is happening at the expense of our volunteer culture. This is also evident in
the declining number of volunteers who are losing faith within the service as well as seeing a
lack of support from the government in return for their services.
Views expressed regarding volunteering by the NSW SES VA are not just contained within the
volunteer membership of the NSW SES VA but also shared by volunteers from other
emergency services. The Royal Fire Service Association (RFSA) with its 70,000 membership
share a number of the same views and concerns as the NSW SES VA and their policy document
should be read also.
This policy document highlights a number of issues concerning NSW SES volunteers, concerns
that the NSW SES VA believes can and should be addressed by both the NSW State
Government and NSW SES Management. Therefore the NSW SES VA is seeking the support of
both the NSW State Government and the management of NSW SES in implementing the
recommendations listed in this policy document.
1. NSW State Emergency Service Governance: a policy relating to the independence of
the NSW SES.
2. Budget and Finances: a policy relating to the funding model of the NSW SES.
3. Regional Training Centres: a policy relating to the establishment of permanent
training facilities.
4. State Emergency Service Volunteers: policies relating to the out of pocket expenses
incurred by volunteers and improvements to employer benefits for employers of NSW
SES volunteers.
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5. State Emergency Service Staffing: a policy on the NSW SES employing NSW SES
volunteers.
6. Functional Capacity: a policy relating to the combat roles of the NSW SES and
maintaining those roles.
7. Deductible Gift Recipient: a policy relating to deductible gift recipient status for the
NSW SES VA.
8. Workers Compensation: a policy regarding the review of workers compensation for
NSW SES volunteers.
9. Amendments to the State Emergency Service Act 1989: policies regarding changes
to the Act.
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Introduction
The NSW State Emergency Service Volunteers Association (NSW SES VA) represents more
than 8,600 volunteers across NSW. Although being independent of the NSW SES, the NSW SES
VA work closely with Management and staff along with both Government and Opposition
members of the NSW Parliament to voice concerns, views and suggestions for not only
improving conditions for volunteers, but for the betterment of the Service as a whole.
This Election Policy document has been prepared in consultation with the NSW SES VA
members, ensuring that the views expressed here are reflective across the state.
The policies cover areas such as Governance, Budget and Unit Finance, Equipment, Regional
Training Centres, Volunteerism, Functional Capacity, Paid Staff, Deductable Gift Recipient
Status, Workers Compensation and amendments to the Emergency Service Act. These policies
are considered critical to the ongoing viability of the NSW SES if the Government of the day
wants the Service to continue its high standard of providing emergency services to the
communities during all kinds of emergencies using volunteers. The expectations of
communities continue to change over time and hence the service needs to continually adopt
changes to meet their expectations.
By consolidating the policies that are working effectively and efficiently, and then modifying
the policies that are identified as needing modification the NSW SES VA believes we can
construct a road map for the future of the SES. If these policies are supported by both the
Government of the day and SES Management they will ensure that the NSW SES will continue
to progress into an Emergency Response Agency that can and will meet the expectations of
our communities both now and well into the future.
Since formation the NSW SES VA has historically worked closely with both the State
Government and the Opposition and are well aware of the upcoming election in March 2015.
The NSW SES VA are now seeking a commitment from both major political parties to support
the recommendations contained in this policy document. The NSW SES VA believes that if the
Service is to meet the expectations of both Government and the Communities it serves, than
these policies will help put the Service in a better position to maintain the increasingly high
standards expected in today’s climate.
The NSW SES VA believes that any policy changes that impact on NSW SES volunteers need to
be adopted by a consultative process with all stakeholders, however we believe that the NSW
SES, the NSW SES VA, and the Communities we serve are entitled to know what the policy
positions of the major political parties are with regard to the NSW SES and its volunteers. We
also acknowledge that there are matters contained in this document that may require further
explanation and discussion. Representatives of the NSW SES VA look forward to the
opportunity to meet with both Government and Opposition members of Parliament, the
Commissioner of SES (and/or his nominated Staff members) to discuss further these policy
changes to help gain feedback, and their support.
Charlie Moir
President NSW SES VA 1st January, 2015.
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About the NSW State Emergency Service Volunteers Association
In 1998 Greg Perry, a volunteer Division Controller, saw a need for NSW State Emergency
Service (NSW SES) volunteers to have a voice in the contribution made by volunteers and the
impact thereon regarding the service provided by the NSW SES. With the support of the then
Director General Brian ‘Hori’ Howard the NSW State Emergency Services Volunteers
Association (NSW SES VA) was formed.
From the start, the NSW SES VA aimed to ensure that every volunteer had the opportunity and
the support to help make the NSW SES a better organisation.
The NSW SES VA consists of:
A Board of Directors.
Three Zone Councils
Member Representatives - comprises one representative from each of the 17 Regions
across NSW.
Membership of approximately 5,000 volunteers
What does the NSW SES VA do for volunteers?
The NSW SES VA Representatives meet regularly to discuss ideas, concerns and other
matters to the betterment of the volunteers, the Service and the communities to which
they service.
The NSW SES VA Representatives meet regularly with NSW SES Management and staff
to discuss goals and objectives as well as to consider volunteer impacts on improving
the service delivery to communities.
To assist in achieving NSW SES goals the NSW SES VA offer scholarships to NSW SES
volunteers pursuing advanced education or training in NSW SES related areas.
Similarly, the SES VA offers unit grants to local NSW SES units, providing funding for
much needed volunteer amenities.
The NSW SES VA has also established the NSW SES VA Welfare Fund to provide
financial and other assistance to volunteers and their families in times of trauma or
grief.
The achievements for the NSW SES VA include:
Successfully lobbied the NSW Government to have the association included in the NSW
State Emergency Service Act of 1989. This came into effect on 1st July 2010.
Representatives serve on state wide NSW SES Committees and have been successful in
having the 10 year long service medal introduced.
Red and blue lights now legally displayed on NSW SES Operational Vehicles.
Help gain $6M increase in budget to the NSW SES budget for the volunteer support
package.
Establishment of a State Protocol Officer and successfully recruited a volunteer for the
position.
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Quarterly publishing of the “Volunteer” magazine to assist communication to
volunteers plus also publishing an annual calendar.
In 2005 produced a booklet called Born of Need – the History of the NSW SES Units and
in 2011 published a booklet on the History of the NSW SES Regions.
Acquisition of office space for NSW SES VA purposes plus employment of paid NSW
SES VA staff providing dedicated support to the NSW SES VA charter and its
volunteers.
Establishment of a one-stop shop for NSW SES and NSW SES VA merchandise, to assist
the Volunteer branding and help recruitment, plus also offering additional NSW SES VA
funding.
Our Motto is “VOLUNTEERS SUPPORTING VOLUNTEERS”
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About the NSW State Emergency Service
The New South Wales State Emergency Service (NSW SES), like its sister organisations in the
other states, can trace its origins back many decades. The organisation was founded on the
need to respond to two different types of emergencies – floods, which have bedevilled
communities since the beginning of European settlement, and the threat of war on Australian
territory. The formal beginnings of the State Emergency Service in 1955 rest on earlier efforts
in flood rescue and relief and the development of a civil defence capability to protect the
community from enemy attack.
From the 1870s water brigades were established along the Hawkesbury River to the west of
Sydney. These groups were community based and well supported by local councils and the
government. By 1906 there were some twenty brigades, spread from the Tweed to the
Hawkesbury, all performing invaluable work during times of flood.
From around 1920 until the end of World War II a long period of minimal flooding occurred in
NSW. The water brigades declined in number, a process further exacerbated by the human
toll of the war. After the war a decade of increased flooding saw the brigades struggle to
respond. Severe floods occurred in many parts of the state, culminating in the great floods
along the Hunter River in February 1955. Flooding also occurred in the North-West and
Central West regions in locations as diverse as Dubbo, Moree, Narrabri, Coonamble and
Inverell, claiming 22 lives and causing enormous damage to towns, infrastructure and farms.
Following the disastrous floods of 1955 the NSW State Government set up the State
Emergency Service to coordinate future flood responses. The organisation was to be based on
volunteer membership drawn from local residents, and was to be involved in flood warning,
communications, evacuation and maintenance of essential supplies during floods.
Simultaneously, in the frostiest days of the cold war, the State Government also saw the need
to establish a Civil Defence organisation, and so it was that the earliest State Emergency
Service had the dual tasks of flood community response and the management of civilian
protection in the event of war.
Much has changed in the succeeding half century. As the cold war threat abated, the Civil
Defence role of the State Emergency Service disappeared. The State Emergency Service Act of
1989 officially saw the Civil defence organisation dismantled leaving the NSW SES as the sole
agency in this area.
The NSW SES volunteers continue to remain as busy as ever with a wide range of emergencies
for which their assistance is called upon. The NSW SES is now the most versatile and widely
used rescue and public safety organisation in NSW.
The organisation is presently comprised of a State Headquarters in Wollongong, 17 regional
offices across the state and 228 SES ‘Units’. The units are staffed by some 8,600 volunteers,
aged from 16 to over 80, from both genders and a very wide variety of backgrounds, skills and
expertise.
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The primary roles of the NSW SES include:
Floods – including warning, evacuation, rescue and providing essential supplies to
people isolated by floodwater.
Storms – including securing and covering damaged roofs, removing fallen trees and
branches from property and rescuing trapped people.
Tsunamis
In addition the NSW SES:
Has 83 road crash rescue units in the rural areas
Has 32 Vertical Rescue Units (rescue from heights).
Assists other agencies in the management of disasters such as bushfires, earthquakes,
landslides and technological disasters.
Assists the police with searches for lost people or evidence
Has 10 Community First Responders trained by the Ambulance Service of New South
Wales. They are available 24 hours a day seven days a week to provide a higher level of
First Aid treatment in areas where the Ambulance Service is remote to the location.
All of the above could not be achieved without the support and dedication of the
NSW SES Volunteers.
For more information, or to find out about volunteering, visit the SES website or call:
1800 201 000
www.ses.nsw.gov.au
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1. NSW State Emergency Service Governance
1.1. Independence of the State Emergency Service
History/Background
The NSW State Emergency Service (NSW SES) is principally founded on Volunteers excelling
in emergency management. They are the response agency for floods, storms and tsunamis in
NSW. More than 8,600 volunteers give up their time throughout the 228 Units located across
NSW to assist their communities during floods, storms and other emergencies.
Current Standing(s)
The functions and responsibilities of the NSW SES volunteers are managed and supported by
the NSW SES as a Government Department. This Department is managed and lead by a
Commissioner and their appointed staff members. In addition the Department provides the
equipment and other resources required for volunteers to carry out their duties during an
emergency. The Department also provides advice to the Minister for Emergency Services on
all matters associated with floods, storms and tsunamis in NSW.
Although there have been moves to amalgamate various emergency combat agencies over the
years the fact is that if this were to happen it would very much damage the NSW SES’s
capacity to respond to the communities needs during times of emergencies. The NSW SES has
evolved into the most diverse emergency response agency in NSW and this diversity has been
built on the back of its volunteer culture.
For the NSW SES to continue to build on their combat role in providing emergency assistance
and management during emergencies, the Service needs to maintain its independence from
other emergency service combat agencies. And further the NSW SES must continue to foster
and nurture the voluntarism that the NSW SES has been so successfully structured around.
Recommendation
The NSW State Emergency Service Volunteers Association (NSW SES VA) believes that the
independence of the NSW SES should be maintained by all future NSW Governments. The
NSW SES VA supports the principal of emergency service agencies working together to
achieve back-office reforms and efficiencies, however the NSW SES should remain
independent of other combat agencies to be able to continue to provide the service the
communities expect and demand.
Further to this the NSW SES should remain a predominately voluntary organisation, with
volunteer input into all functions and capacities of the NSW SES.
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2. Budget and Finances
2.1. Budget
History/Background
The funding system for the NSW SES is now a Contributory Funding Model, called an
“Emergency Service Levy” (ESL) based on the NSW State Government providing 14.6%, Local
Government Councils providing 11.7% and a levy on insurance policy holders providing
73.7% of the total budget.
The NSW SES VA and NSW SES volunteers are under no illusion as to the true providers of this
ESL, the NSW Governments 14.6% comes from the tax payers of this State and that includes
NSW SES Volunteers, the Local Government Councils 11.7% comes from the rate payers of
that Local Government Area and that includes NSW SES Volunteers and the 73.7% insurance
contribution comes from the Insurance Policy Holders and this also includes NSW SES
Volunteers.
Given that information however, the current “Contributory Funding Model” is considered an
improvement on the previous funding model where the NSW SES had to compete with other
Government Departments for funding. The NSW SES VA would support a review of the
current funding model to not only address the anomalies that have emerged since this funding
model was introduced, but to compare the funding model with those funding models that are
used in other States of Australia.
A number of anomalies have emerged in the implementation of this funding model that needs
to be addressed by the relevant authority. The three combat agencies receiving funds from the
“ESL”, namely the NSW State Emergency Service, Fire & Rescue NSW and the NSW Rural Fire
Service have each increased their budgets significantly since the introduction of this funding
model. These increases have in turn impacted adversely on Local Government Councils
because they have been placed at a disadvantage by not being able to budget for these
increases and are unable to recoup these extra expenses because of the State Governments
rate pegging policy.
When this funding model was being introduced the Local Government Councils and the NSW
SES VA were given an assurance by the State Government that they would not incur any extra
expense as a result of the new funding model, however as a result of the three combat
agencies increasing their respective budgets significantly Local Government Councils are now
desperately looking for ways to combat or offset these additional costs.
Current Standing(s)
The current State Government’s ESL is putting the Local Government Councils at a
disadvantage. Insurance Companies are authorised under the relevant legislation to apply the
levy on policy holders, however Local Government Councils have so far been expected to
absorb these additional costs.
The NSW SES VA sees no reason why not-for-profit LGAs should be denied the means to pass
on this levy while profit-making enterprises (insurance companies) that stand to benefit
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substantially in terms of lowered claims as a result of NSW SES intervention, are passing the
cost directly to their customers.
Recommendation
1. The NSW SES VA recommends the changing of current State Legislation to allow Local
Government Councils to collect the 11.7% “Emergency Service Levy” (ESL) by placing this
Contributory Funding outside the rate pegging Legislation. Further to this, that Local
Government Councils be given at least 12 months’ notice of any potential and/or
significant increases in the ESL.
2. Consideration should be given to a more equitable mechanism for financing the three
Emergency Services. (A levy based on built property value may be more appropriate than
the two current ESL – the one on Councils and the one on insurance policy holders)
3. Consideration should be given to providing a levy exemption to households that include
one or more occupants who have given five (5) or more years of voluntary service to one
of the three Emergency Services that receive funding from the ESL.
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3. Regional Training Centres 3.1. Permanent Training Facilities
History/Background
Much of the NSW SES volunteers’ time is devoted to undertaking the required training to gain
accreditation and prepare for the emergencies they are expected to respond to. This is not
only within their own communities, but also to assist other volunteers and communities in
times of various emergencies.
The NSW SES is a registered training organisation (RTO) and conducts its volunteer training
at various locations across NSW. These NSW SES training activities can range from three (3)
hours to three (3) days in duration.
There are many and varied components involved in NSW SES training requirements and
depending on the type and duration of the training activity it could be conducted at a NSW
SES Unit Headquarters, a NSW SES Region Headquarters or at privately owned facilities. Many
courses require access to outdoor areas like reserves or bushlands, as well as waterways like
rivers, creeks and dams.
Current Standing(s)
Many NSW SES Units have their own training area to conduct the theoretical component of a
training activity, however not many have access to purpose built training facilities for the
practical component of the training activity.
These training facilities are needed for the volunteers to not only acquire the skills required
for accreditation of a particular skill set, (as required and set down by the State Rescue Board)
but to also practice and hone these lifesaving skills in order to keep them current. An example
of this problem is encountered when training for flood boat rescue operations. Unless
volunteers are lucky enough to be based near a river that regularly floods, training for this
activity is usually conducted on local calm water dams or lakes.
Much conjecture has arisen because of the lack of training facilities for such activities and
solutions to this predicament could be easily rectified by constructing permanent training
facilities at strategic locations within NSW.
Recommendation
Consideration should be given by the NSW State Government for the construction of three (3)
permanent NSW SES training facilities across NSW. A suitable study should be conducted by
the NSW SES to determine suitable locations and sites along with suitable designs and costs
involved. These training facilities could be funded by the NSW State Government over four (4)
years with a one off grant of $300,000 initially to conduct the study. Based on the successful
findings, further funding could be provided for the construction of one training facility each
financial year over the following three (3) years, up to a maximum of fifteen million dollars.
($15,000,000)
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4. NSW State Emergency Service Volunteers 4.1. Off set costing of volunteering
History/Background
The NSW SES provides volunteers with the necessary equipment, training, uniforms and
Personal Protective Equipment (PPE) in order for them to safely perform their role; however
being a NSW SES volunteer often involves out of pocket expenses, particularly in areas of
transport and communication.
The 2007 Volunteering Australia Costs of Volunteering Taskforce Report found:
88% of volunteers have out-of-pocket expenses that are not reimbursed
On average, volunteers were out-of-pocket by $693 per year
One-in-ten volunteers changed their volunteering involvement in the past 12 months
due to the personal costs involved
Current Standing(s)
NSW SES volunteers are able to claim some expenses by reimbursement through the
organisation, however many costs incurred by volunteers are unable to be to be claimed.
Recommendation
1. The NSW SES VA recommends that the State Government arranges an up to date
investigation into the Cost of Volunteering in 2015 and implement any recommendation
pertaining to minimising and reimbursing out of pocket expenses associated with
volunteering for the Volunteer Emergency Service Combat Agencies.
2. Pending the updated investigation in 1 above the NSW SES VA would also like to see the
immediate implementation of the recommendations made in the Costs of Volunteering
Taskforce Report. (A full copy of the “Cost of Volunteering Taskforce Report” is located on
page 25.)
4.2. Emergency Service Leave
History/Background
The Fair Work Act (2009) introduced National Employment Standards (NES) which provide
for Emergency Service Leave as part of the entitlement to “Community Service Leave”. Prior to
this legislation only some, typically larger employers provided for Emergency Service Leave.
Current Standing(s)
Many volunteers are not paid by their employer for time taken off in providing their
volunteering services as there is no legal obligation under the NES for employers to pay
employees who take Emergency Service Leave (unless their employer has a more generous
Emergency Service Leave policy). Effectively it costs them money (loss of wages) to assist
their community.
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Queensland, under the Public Safety Preservation Act (1986) and Western Australia, under
the Emergency Management Act (2005), both provide for the payment of wages to employees
who take Emergency Service Leave.
Recommendation
The NSW SES VA would like to see NSW adopt similar legislation to that in Queensland and
Western Australia so that volunteers who take Emergency Service leave to assist their
community during emergencies are not financially disadvantaged.
4.3. Support for Employers of SES Volunteers
History/Background
One of the main challenges NSW SES Volunteers face is taking time off work to attend call outs
and emergencies. As stated in 5.2 above, whilst the National Employment Standards provide
for Emergency Service Leave, the result is either time off is taken by the volunteer and unpaid
(the volunteer is disadvantaged) or time taken off is paid and borne by the employer (the
employer is disadvantaged).
Current Standing(s)
The State Emergency and Rescue Management (SERM) Act (1989) provides Employment
Protection for Volunteer Emergency Workers (Part 3A); however this only applies to
“Declared Emergencies”.
The Payroll Tax Act (2007) provides payroll tax exemptions for employers of emergency
service volunteers but only for the actual time that their employees spend doing emergency
service work. Based on an employee on the average wage this amounts to $13.54 per day. The
value of this to employers is more than negated by the administrative effort (& employee cost)
required to claim this back.
Recommendation
1. The NSW SES VA would like to see Part 3A of the SERM Act amended to include “Natural
Disaster Declarations” as well as “Declared Emergencies”. This would assist volunteers
getting released from work to assist with major natural disasters like floods, storms and
bushfires.
2. The NSW SES VA would like to see the Payroll Tax Act amended so that employees who are
emergency service volunteers are completely exempt from payroll tax. This would provide
an incentive to employers of emergency service volunteers by helping them to cover the
cost of paying these employees whilst on Emergency Service Leave.
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5. State Emergency Service Staffing
5.1. Recruitment of Staff from Volunteer Ranks
History/Background
The NSW SES is a voluntary based emergency response organisation that was established
some sixty years ago.
Over these sixty (60) years of evolution the NSW SES paid staff members have increased from
a small number at the start to currently number more than three hundred (300+).
The role of these NSW SES paid staff members is to manage and support its 8,600 NSW SES
volunteer members.
The ‘volunteer culture’ of the NSW SES that has evolved over the last sixty years needs to be
protected and nurtured by both Government and NSW SES management. This ‘volunteer
culture’ is both locally based and locally focused and should be supported in any NSW SES
paid staff recruitment policies by emphasising the value of volunteer knowledge and
voluntarism in general.
Current Standing(s)
Many of the current paid staff members have been part of the volunteer side of the NSW SES,
however many do not come with volunteer management experience and this has caused
concerns and some unrest among volunteer members. Advertised positions within the NSW
SES regularly state that current paid staff will be given preferred status for the advertised role
with volunteers unable to apply until after an initial four (4) month period (or something
similar) form commencement of the advertisement.
The NSW SES VA supports the ‘merit selection principle’ currently used by the NSW SES and
believe the best person for the job should get the job, however more emphasis is required in
NSW SES paid staff job descriptions on volunteer management and support.
Recommendation
The NSW SES VA recommends that all current and future NSW SES job descriptions have a
‘desirable quality’ inclusion of ‘experience as a NSW SES volunteer’ and that all paid staff and
volunteers be given equal opportunity to apply and be selected for any advertised role.
Further, if two candidates for a NSW SES paid staff position are equally qualified with similar
experience, preference should be given to the candidate with the NSW SES volunteer
experience.
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6. Functional Capacity
6.1. NSW SES Core Roles need to remain under NSW SES Control
History/Background
The NSW SES is the combat agency for Foods, Storm Damage and Tsunamis for NSW. It has
taken sixty (60) years of training and responding to these natural disasters for the NSW SES to
become experts in the field of all matters associated with these natural disasters. Responding
to the incidents, providing public education on preparedness and providing assistance before,
during and after these incidents has enabled the NSW SES to become the most versatile
combat agency in NSW.
Current Standing(s)
Although the NSW SES is the combat agency for Floods, Storms and Tsunami, they are
involved in much more than those activities, for example it provides “Road Crash Rescue”
services in many Local Government Areas, it provides “Vertical Rescue” (rescue from heights
and depths) and “Flood Rescue”. NSW SES volunteers assist the Police with “Land Search” and
“Evidence Search” along with many other activities associated with other combat agencies.
The NSW SES works closely with the NSW Rural Fire Service and Fire and Rescue NSW in a
support capacity. The NSW SES respects the roles of other agencies and the NSW SES does not
involve itself in fires except to provide support. The NSW SES VA believes that those other
combat agencies should respect the role that the NSW SES plays in Floods, Storms and
Tsunami, acknowledge the expertise required to perform these roles and acquire the
accreditation as set down by the State Rescue Board if they wish to provide assistance to the
NSW SES.
There is some concern among some NSW SES volunteers that other combat agencies are
attempting to ‘branch out’ covering aspects and activities currently covered by the NSW SES
and a such implementing a takeover rather than supplying a support role as is currently in
place.
Recommendation
The NSW SES VA is of the view that the NSW SES should remain the sole combat agency for
Floods, Storms and Tsunami and that the other combat agencies continue to provide support
to the NSW SES as agreed in “Memorandums of Understanding” and/or “Mutual Aid
Agreements”.
Although the SES Act 1989 specifies the combat role of the NSW SES and other combat
agencies it would appear that the Act may need reviewing to more clearly identify each
combat agency’s role in all types of emergencies.
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7. Deductible Gift Recipient
7.1. Deductible Gift Recipient (DGR) Status for NSW SES VA
History/Background
The NSW SES VA is a registered charity, but does not meet the current requirements for DGR
status. Although recent changes to legislation by the Australian Taxation Office (ATO) allow
for individual NSW SES Units to qualify for DGR status, not-for-profit entities such as the NSW
SES VA are still unable to qualify.
Current Standing(s)
The NSW SES VA provides educational scholarships to individual SES volunteers to provide
long-term benefits to the communities by facilitating a highly skilled volunteer base. They also
provide much needed grants to volunteer Units to assist with funding resources to help them
better educate and serve the public. The NSW SES VA also provides public education on how
to protect and prepare themselves and their property against the effects of storms, floods and
tsunamis. They also act as a focal point for NSW SES volunteers to assist the NSW SES to
improve their capacity to respond to community needs during and after emergencies.
Within the NSW SES VA they have established a Welfare Fund which provides funds to
support the families of volunteers in the event of hardship caused by injury or death whilst
executing their duties as NSW SES volunteers. This Fund has been granted DGR status by the
ATO but the generation of income and the purposes or uses of such funds are extremely
limited.
As such, outside the Welfare Fund and although a registered charity and a Not for Profit
Company, the NSW SES VA is unable to provide donors a DGR receipt for tax deduction
purposes and this limits the opportunities for larger donations.
Recommendation
The NSW SES VA believes that the State Government should lobby the ATO, through the
Federal Government, to change the requirement set down for DGR status so as to allow
combat agency associations to be eligible for DGR status.
20
8. Workers Compensation
8.1. Workers Compensation for NSW SES Volunteers
History/Background
NSW SES volunteers injured whilst participating in authorised activities (including but not
limited to routine and operational activities, training activities and travelling to and from
authorised activities) should receive compensation over and above that provided to persons
whose compensation entitlements are specified in relevant State legislation other than in the
Workers Compensation (Bush Fire and Emergency Rescue Services) Act 1987 and the
Regulations thereto, so as to ensure that no financial hardship is suffered as a consequence of
their voluntary service.
Furthermore, in the event of death, the volunteer’s family should receive an additional lump
sum amount.
Current Standing(s)
In 1987, the Workers Compensation (Bush Fire and Emergency Rescue Services) Act was
proclaimed. This legislation extended workers compensation entitlements to volunteers of the
RFS, NSW SES, Volunteer Rescue Association (VRA) and Surf Lifesaving NSW. The Act
recognised the unique nature of the volunteer emergency service people and the fact that
these volunteers are not paid and as such there is no employer/employee relationship.
Reference is made throughout the Act to the principal Workers Compensation Act in
determining benefits, etc. Although this may have been a convenient mechanism for the
development of the legislation it can make it difficult to interpret and understand the
difference in provisions.
Two issues are of particular concern to the NSW SES VA, namely:
1. The 26 week statutory limitation on weekly benefits prior to reduction in scheduled
benefits.
2. The difficulty in assessing weekly benefits for self-employed volunteers when injured.
The NSW SES VA is of the view that the Government should negotiate an insurance scheme
that guarantees benefits over and above current workers compensation entitlements for
volunteer emergency service workers injured while participating in authorised activities
(including but not limited to routine and operational activities, training activities and
travelling to and from authorised activities) and that provides for full pre-injury income until
fully recovered.
Recommendations
1. The NSW SES VA recommends the NSW Government provide an insurance scheme that
provides the families of volunteer emergency service workers killed or injured whilst on
duty, with additional benefits in the form of a lump sum payment and weekly benefits
when appropriate and that these payments be in addition to current workers
compensation benefits.
21
2. The NSW SES VA recommends the NSW Government provide to volunteer emergency
service workers injured while participating in authorised activities (including but not
limited to routine and operational activities, training activities and travelling to and from
authorised activities) an insurance scheme that provides for full pre-injury income
payment regardless of duration.
22
9. Amendments to the State Emergency Service Act 1989 as amended
from time to time
9.1. Amendments to the State Emergency Service Act 1989 relating to the VJCC Act
2010
History/Background
The NSW SES VA is mentioned in the SES Act 1989 under the VJCC Act 2010 as an
incorporated Association and as the NSW SES VA transitioned to a Not for Profit Company in
2013 this change needs to be reflected in the SES Act.
Current Standing(s)
Although the NSW SES VA’s status has changed from an incorporated Association to a Not for
Profit Company the name of the organisation has not changed, however NSW SES VA’s status
change affects the VJCC mentioned in the SES Act 1989.
Recommendations
That the State Government amends the NSW SES Act 1989 to reflect the change in status of
the NSW SES VA mentioned in the VJCC Act 2010.
9.2. Amendments to the State Emergency Service Act 1989 to volunteer interests.
History/Background
Since the introduction of the SES Act 1989 there has been monumental changes in the makeup
of the NSW SES in relation to the ratio of paid public servants to volunteers. This change in
ratio has resulted in the interests of volunteers being eroded over time.
Current Standing(s)
The interests of the paid public servants of the NSW SES are protected by the Public Servants
Association and various awards; however the volunteers do not have these bodies to protect
their interests. As a result many volunteers believe they are disadvantaged by the system
when it comes to things like grievance matters and disciplinary procedures. The NSW SES
now refers to all SES volunteers as “employees” and “public officials”, however they do not
have the same support mechanisms as the paid public servants when it comes to grievance
and disciplinary procedures.
The NSW Rural Fire Service (RFS) Act, includes a mention that all RFS volunteers are
automatically a member of the Rural Fire Service Association, an Association with similar
objectives to the NSW SES VA and the NSW SES VA believes that sets the precedent for the
NSW SES volunteers.
Recommendations
The NSW SES VA recommends that the SES Act 1989 be amended to include all SES volunteers
as automatic associate members of the NSW SES VA, thus providing a body that can and will
represent and protect the interests of all SES volunteers.
23
Associate membership of the NSW SES VA would be obligation free for all Associate members,
however Associate members would be eligible to register themselves as conscientious
objectors whilst still retaining the protection and any benefits associated with being an
Associate member of the NSW SES VA.
9.3. Amendments to the State Emergency Service Act 1989 relating to Volunteer
Controller appointments
History/Background
The SES Act 1989 allows for the appointment of various Volunteer Controllers by the SES
Commissioner and/or their delegate, these appointments are for a limited duration and re-
appointments are subject to satisfactory performance appraisals every 2 years. In recent
times the NSW SES has replaced a Volunteer Controller with a paid public servant during a
very lengthy dispute.
Current Standing(s)
In the incident mentioned there were problems surrounding due process and procedural
fairness which involved a number of legal firms in an attempt to resolve the matter. The NSW
SES VA objects to the practice of using paid staff to fill volunteer roles when there are other
volunteers capable of filling these roles. The NSW SES VA is not questioning the SES’s right to
appoint or reappoint Volunteer Controllers; however they do object to this practice of filling
volunteer roles with paid staff, and without any indication as to the term of appointment. This
is a clear double standard of SES practice as the SES has a policy of not allowing SES
volunteers to apply for a paid staff role within the first 4 months of advertising the position.
Recommendations
The NSW SES VA recommends the State Government amend the SES Act 1989 to protect the
rights of Volunteer Controllers appointed under the SES Act by specifically identifying
Volunteer roles versus paid public servant roles.
9.4. Amendment or Otherwise to the State Emergency Service Act 1989 relating to
Volunteers
History/Background
The SES Act 1989 defines all NSW SES Paid public servants and Volunteers as “Public Officials”
and infers throughout the Act the alignment between the two. This alignment however is
quite the opposite with Paid Staff and Volunteers receiving different entitlements, benefits
and treatment.
Current Standing(s)
Various cases of inequality between Paid Staff and Volunteers can be cited including the
following examples. In many cases the NSW SES VA is not requesting equality it is just
requesting the legislation recognise these differences.
Examples:
24
Paid staff being appointed in Volunteer roles without any consideration of available
Volunteers whereas Volunteers can not apply for a paid position until after 3 months of
the position being advertised and unfilled.
Paid staff being placed in charge of an “incident” whereas the Local Controller
(Volunteer) and other volunteers with training accreditation and local knowledge are
being overlooked.
Level 3 Incident Controller appointments restricted to paid staff only.
Such inequalities being implemented without due consideration and acknowledgment is
having an impact on Volunteer numbers with more and more Volunteers resigning from the
service
Recommendations
In considering implementation of the above issues and requests it is suggested that these may
be better addressed via a different process e.g.: a separate “Emergency Service Volunteer Act”
(or similar). The current Act attempts to group Volunteers and Paid Staff together suggesting
they are all “Public Officials” when in reality the benefits, entitlements and treatment are
somewhat different and need to be clearly recognised as such.
25
The Rising Costs of Volunteering
A report prepared by the Costs of Volunteering Taskforce
CONTENTS
1. Executive summary 2. Introduction 3. Issues impacting on volunteering 4. Finding a solution 5. Practices in other countries 6. The work of the Cost of Volunteering Taskforce 7. Principles and definitions 8. The Options 9. Recommendations 10. Conclusion 11. Contact details 12. Appendix 1
1. Executive summary
Over the past six years consultation and research within the volunteering sector has consistently
provided evidence that the rising cost of volunteering to the individual is becoming an issue of
some concern. Australia is in the fortunate position of having high levels of volunteer involvement
in the adult population with the numbers currently sitting at around 41 percent. Whilst we are
cautiously confident that at this stage Australians are more engaged and enthusiastic about
volunteering than ever before we bring to government’s attention the recent experiences of the
UK, Canada and the USA where volunteer numbers declined before significant government
intervention and funding support to the volunteering sector halted the process.
Recent surveys have shown that some volunteers are considering either reducing their
involvement or ceasing involvement altogether. Much anecdotal evidence would support these
findings.
In 2001 Volunteering Australia undertook a comprehensive national consultation, as did the
emergency management volunteer sector; both consultations uncovered a level of dissatisfaction
among volunteers about the cost of volunteering and the unrecognised impact of this by the rest
of the community, in particular government.
In the second half of 2001 Volunteering Australia brought together a small taskforce of experts to
look at the issue of rising costs of volunteering and to determine some possible solutions.
The taskforce identified six options that government might consider when addressing the
escalating issue of volunteer expenses. Each option was considered against the principles of:
equity, universality, simplicity for volunteers, simplicity for organisations, simplicity for
government, transparency, not undermining the Principles of Volunteering, positive impact on
recruitment and retention of volunteering, cost and availability of new funding.
The taskforce identified the broad areas where volunteers incur costs as: transport
26
(petrol/vehicle/public transport), telephone, safety equipment and clothing (including uniforms
and their maintenance), and training.
The taskforce also recommended criteria to ensure that expenses:
• are not already reimbursed
• are directly connected with the volunteer work as set down by the organisation (working within
agreed parameters)
• are not deemed to be personal expenses of the volunteer (ie: the volunteer has incurred the
expense only as a result of their volunteering activity).
The six options were divided into two categories: reimbursement to the volunteer through the
organisation for which they work and personal reimbursement direct to the volunteer:
Organisational reimbursement options:
1. A grant process similar to the existing volunteer small equipment grant (VSEG) program
through which organisations would apply for funding on the basis that they have reimbursed,
or intend to reimburse, volunteer out-of-pocket expenses.
2. Government requirement for volunteer reimbursement budget in funding applications from
not-for-profit organisations.
3. Tax credit to the not-for-profit organisation – this would most effectively be administered
through the Goods & Services Tax (GST) system as an offset on the Business Activity Statement
(BAS) given that most not-for-profit organisations are income tax exempt.
Personal reimbursement options:
4. A personal tax rebate.
5. A personal tax reduction.
6. A personal grant/claim process that the volunteer would apply for directly to the relevant
government agency, for example, the Health Insurance Commission (ie: Medicare Offices) and
provide evidence of relevant expenses.
The taskforce recommended that for all options that deductible gift recipient (DGR) status be used
in the first instance as the criteria by which organisations would qualify themselves or their
volunteers for reimbursements.
Additionally, the taskforce recommended that the amount of reimbursement per volunteer per
year be capped at a nominal amount, for example, $300.
The taskforce was not in a position to provide a costing for any of these proposals nor did it
identify a preferred option. It did however strongly recommend that government consider all
options carefully and implement some form of assistance to volunteers to ensure that Australia
does not experience a significant downturn in volunteer involvement.
2. Introduction
In Australia there are over six million active volunteers over the age of 18. They make up around
41% of the adult population and between them provided approximately 836 million volunteer
27
hours in 20051. Ironmonger (2000) estimates that volunteering is responsible for around $42
billion of economic activity annually2. In 2000 the Australian Bureau of Statistics calculated the
direct value of volunteer work was $8.9 billion.
Australia also has anywhere between 500,000 and 700,000 third-sector organisations (Lyons,
2001) the majority of which involve volunteers in some capacity. The ABS tells us that although
most of these organisations do not have paid staff, they are responsible for 3.3% of GDP, and if one
includes the financial value of volunteer activity, the figure rises to 4.7%3 of GDP. This is serious
business: not-for-profits make an economic contribution larger than the communications
industry, about equal to that of the agriculture industry; or a contribution almost twice as large as
the entire economic contribution of the state of Tasmania.
Australia is also in the envious position of steadily increasing its volunteer workforce over the
past decade against world trends in developed countries; the British, Canadian and US
governments have all addressed the downturn in volunteering as an issue of concern by
introducing policies supportive of volunteering which have assisted in creating an enabling
environment in which organisations and volunteers can operate.
Clearly Australians are good volunteers, embracing the notion of community participation with
enthusiasm and dedication. Some volunteer involving organisations are in an excellent position to
provide excellent working conditions; they are well resourced and make an investment in their
paid and volunteer workforce. Others simply do not have the resources to adequately reimburse
their volunteers. This may be because they are small or newly emerging or they may work in an
area that finds it difficult to attract funds due to the nature of the cause they support. In such
cases, the work of the organisations is no less important, but they are heavily reliant on the
goodwill of volunteers to keep their organisations active.
To many organisations the issue of volunteer costs and reimbursements has never even been
thought of because their work is almost entirely volunteer based.
This wonderful diversity in non-profit organisations is the very thing that allows small
communities to tackle local issues and develop local facilities but when volunteers start making
the decision to give up volunteering because the cost is too great it is time for governments to act.
This paper does not seek to provide one solution for the rising costs of volunteering but rather
several possibilities to address what could become a serious barrier to volunteering. The
taskforce that is responsible for this paper was not in a position to cost some of the options it has
suggested but offered government any assistance it can in developing these proposals further.
It should be noted that while this submission is intended for the Australian Government to
consider options at the Commonwealth level, the taskforce acknowledged that governments of all
jurisdictions have a responsibility for supporting volunteering. State and local governments that
1 Dept of Family, Community and Indigenous Affairs, Giving Research on Philanthropy in Australia. Survey of Business – Canberra.
www.partnerships.gov.au/philanthropy/philanthropy_research.shtml#Final Reports. 2 Ironmonger, D (2000) Volunteers and Volunteering Federation Press.
3 Australian Business of Statistics, Non-profit Institutions Satellite Account, Australian National Accounts 1999/2000. Catalogue No.
5256.0, ABS Canberra, 2002
28
fund programs and services delivered by volunteers should also consider how they can support
volunteers and the organisations they fund to meet the costs of out-of-pocket volunteer expenses.
3. Issues impacting on volunteering
In 2001, the Australian Community Council for the United Nations International Year of
Volunteers undertook a nation-wide consultation to ascertain the major issues confronting
volunteering in the new decade. Volunteering Australia co-chaired the committee with Australian
Volunteers International and both organisations were present at the consultations.
Apart from the face to face consultations in all the capital cities and a number of regions over
17,000 questionnaires were distributed with a 10% return rate. A number of issues were
consistent across the country and these eventually provided the basis of the document A National
Agenda: Beyond the International Year.4 The National Agenda dealt with a number of issues
including the legislative framework within which volunteers work, the lack of public recognition
of the value of volunteering to the Australian community and the unintentional disincentives and
barriers to volunteering.
Not surprisingly the cost of volunteering came out as one of the major issues in the consultations;
this was reinforced at the Emergency Management Volunteers Summit ‘Value your volunteers or
lose them’ in 2001.5 It was even more of a concern for the volunteers at the Emergency
Management Volunteer Summit in 2005. Consistently through all of the consultations volunteers
mentioned the cost of volunteering and many suggested that these should be mitigated through
the taxation system. There was however recognition that dealing with volunteer expenses
through the tax system would be inequitable for some as many volunteers are not part of the tax
system, for example, young people not yet in the workforce, some of those in receipt of
government benefits and many older volunteers.
More recently many volunteers, particularly those required to wear uniforms, use safety
equipment or travel great distances to and from the volunteer workplace, have suggested that
these costs are becoming prohibitive.
Volunteering Australia surveyed 841 volunteers, 609 non-profit organisations and 15
corporations with employee volunteering programs on the price of petrol and its impact on
volunteering. The results of that survey predictably highlighted that the rising cost of petrol was
acting as a deterrent to a significant number of volunteers. In tandem, non-profits reported a
downturn in volunteer involvement as volunteers felt the effect of rising petrol prices in travelling
to and from their volunteer work. The preliminary findings of the current Volunteering Australia
on-line survey (The Costs of Volunteering) show similar results.
Also in 2005 the Scout Association of Australia, an organisation supporting 60,000 young
Australians with some 20,000 volunteer adult leaders, completed a major review of adults in
scouting. A key finding from this review was that one of the major problems was not recruitment
but retention of leaders. One theme to emerge in relation to retention was that all adult members
4 A National Agenda: Beyond the International Year was the resulting documentation from the nation-wide consultation in 2001. The Agenda was intended as a legacy of the International Year of Volunteers and was reprinted in 2006. 5 The Emergency Management Volunteer Summit was held in Canberra in 2001 under the auspices of Emergency Management
Australia. The documentation and recommendations from this summit can be found on the EMA website www.ema.gov.au (follow the tab to volunteers).
29
require support and one aspect of support they were seeking was a mechanism to reduce the
costs for volunteers. The costs in question were travelling, using either their own transport or
public transport, to attend meetings and run adventure activities for young members, telephone
costs, training costs, use of their own office equipment, uniforms and increases in the costs of
insurance.
Towards the end of 2006 the Australian Emergency Management Volunteer Forum (AEMVF)
intended to release the findings of research into the costs associated with volunteering in the
emergency management sector; early indications from the research show that this cost is sizeable
especially considering this is volunteer work in essential service areas. Items that have incurred
cost for emergency management volunteers include such things as training, telephone costs and
use of office equipment such as internet, software, fax and stationery, meals whilst away from
home, petrol and associated travel costs, use of own vehicle including repairs and maintenance,
childcare and most disturbingly, safety and other personal equipment including protective
clothing needed to provide the service, as well as the cost and maintenance of dress uniforms.
The other major costs to the individual, especially those on call, are largely around using annual
leave entitlements, taking leave without pay or for the self-employed, the loss of income or the
cost of casual staff to keep their business running. Many emergency service volunteers are also
dependent on the goodwill of employers to release them from the workplace at short notice; this
in itself has an impact on the economic viability of small business in rural communities.
Along with the very real impact of rising costs and the various suggestions on how to offset these
is the equally compelling argument that volunteers are not seeking to be fully reimbursed but
rather seek a nominal reimbursement from governments as recognition or a ‘gesture’ as some
have termed it. Many volunteers feel that government needs to acknowledge the work and cost of
volunteering in some tangible way; this being in addition to the reimbursements received from
the ‘employing organisation’.
Some volunteers from the emergency management sector have pointed out that, unlike many
volunteer positions, their role is indistinguishable from paid workers during an emergency and
yet paid workers can claim tax deductions for expenses incurred in the course of pursuing an
income where they cannot.
4. Finding a solution
In September 2002 the Western Australian Minister for Police and Emergency Services gained
support to look at the issue of tax concessions for emergency service (management) volunteers.
An options paper was prepared for the Fire and Emergency Services Authority of Western
Australia (FESA) by PKF Chartered Accountants, examining three potential methods to achieve
national recognition for emergency services volunteers. Of the three options considered in that
paper, a tax rebate was recommended as the most affordable as well as the most equitable, and
the most efficient to administer. A tax rebate was also strongly supported by emergency services
agencies nationally during the consultation period coordinated by FESA.
The report from the Commonwealth Government’s National Inquiry on Bushfire Mitigation and
Management also endorsed the PKF Chartered Accountants recommendation but the proposal did
not get the necessary support and subsequently lapsed.
30
Also in 2002 Guy Barnett, Liberal Senator for Tasmania, put up a proposal to the Commonwealth
Government (entitled Volunteering in Australia How Can We Help?) in which he called for
volunteer costs to be dealt with through the taxation system. Senator Barnett, with the support of
Volunteering Australia, relaunched his proposal in Parliament House and subsequently gained
significant support and interest within government for this.
Volunteering Australia invited a number of experts to be part of a taskforce chaired by Professor
Myles McGregor Lowndes, Director, Centre of Philanthropy and Non-profit Studies, Queensland
University of Technology to examine the proposal of personal taxpayer deduction, or other
methods of reimbursement, for volunteers who have incurred expenses solely in relation to their
volunteering activities for a non-profit organisation and to subsequently provide advice to
Government. The taskforce comprised of a diverse group of eminent professionals who brought
many years of experience in tax law and the non-profit sector to the table. The taskforce came up
with a set of options for government to review, however it was not within the scope of the
taskforce to cost any of the recommendations.
5. Practices in other countries
Only one OECD country has been identified that provides significant support to mitigate the cost
of volunteering through the taxation system; in the US, a taxpayer who itemises their tax return
may be able to deduct some amounts they pay in giving services to a qualified non-profit
organisation. The amounts must be:
� Unreimbursed,
� Directly connected with the services,
� Expenses the taxpayer had only because of the services the taxpayer gave, and
� Not personal, living, or family expenses.
A taxpayer who itemises their deductions can deduct the cost and upkeep of uniforms that are not
suitable for everyday use and that they must wear while performing donated services for a
charitable organisation. Those that do not itemise deductions are able to claim a standard offset
for all deductions.
‘A taxpayer can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil that are
directly related to the use of your car in giving services to a charitable organisation. A taxpayer
cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs
of tyres or insurance. Instead of deducting the actual expenses, a taxpayer can use a standard
mileage rate of 14 cents a mile. There is a further deduction of parking fees and tolls. Reliable written
records of car expenses must be kept’.6
The New Zealand Government released a discussion paper (Tax Incentives for giving to charities
and other non-profit organisations) in which they give good recognition to the successful measures
taken by the Australian and UK governments to encourage corporate and personal philanthropy.
6 Excerpt from the IRS Department of the Treasury Charitable Contributions.
31
Chapter 3 of the document outlines some of the possible ways in which the New Zealand
Government could recognise the contribution of volunteers.7
A number of the issues in the New Zealand discussion paper are under consideration by the
Volunteering Australia taskforce and will be dealt with later in this report. In the main, the
chapter on recognising the contribution of volunteers promotes a rebate for volunteer time given
as the most effective way of recognising volunteers’ costs or failing that a grant to the charity for
which they work. This option was not considered by the Australian Taskforce. One of the
difficulties identified in the New Zealand document is the treatment of such things as honoraria
under a taxation system; issues that have already been effectively dealt with by the Australian
Taxation Office.8
The government in the United Kingdom does provide certain amounts through grants processes
under the compact with the community and voluntary sector that are intended for “capacity
building purposes” including support for volunteers.
6. The work on the Cost of the Volunteering Taskforce
The taskforce, which included Professor Myles McGregor Lowndes from QUT an expert in
taxation and non-profits, John Emerson, partner at Freehill’s and tax and charity law specialist,
Paul Drum, Senior Tax Counsel CPA Australia, Ian Langford Brown, National Chairman of The
Scout Association of Australia and previously the Tax Counsel for the Institute of Chartered
Accountants in Australia, Major General Hori(rie) Howard, Chair Australian Emergency
Management Volunteer Forum, David Thompson, CEO Jobs Australia and Chair of the Non-profit
Roundtable, Sha Cordingley CEO Volunteering Australia and Kylee Bates, Deputy CEO
Volunteering Australia, met a number of times.
The tasks which the taskforce set itself to consider were:
1. Whether the taxation system can be used to deal efficaciously with the costs/out-of-pocket
expenses incurred by volunteers in the course of providing volunteer services to the
Australian community; and
2. What other mechanisms might be available to address the issue of reimbursement of
volunteer expenses.
Drawing upon a range of documents and information arising from consultations and surveys the
taskforce discussed a number of ways in which the costs to volunteers could be addressed
through the taxation system and it became apparent early on that there were a number of
complex issues embedded in this solution. Volunteer costs are dealt with in a number of ways
with wide discrepancy even across like organisations; some volunteer expenses are fully
reimbursed whilst other volunteers receive partial or no reimbursement.
Serious discussion of the issue around non reimbursement or under reimbursement has in the
main confined itself to areas where volunteers provide public or essential services and has been
expressed most vocally through the emergency management sector volunteers and to a lesser
7 See Tax incentives for giving to charities and other non-profit organisations: A government discussion document October 2006.
Policy Advice Division of the Inland Revenue Department Government New Zealand. 8 The ATO has produced a document on this for the use of non-profit organisations.
32
extent through support services provided through Home and Community Care (HACC) programs.
As previously mentioned in 2002 PKF Chartered Accountants developed an options paper for the
Fire and Emergency Services Authority of Western Australia ‘Regarding tax concessions for
emergency service volunteers’. The paper was put out for consultation in 2003 and in 2004 its
recommendations gained the support of the members of the National Bushfire enquiry chaired by
Stuart Ellis, AM.
The report National Inquiry on Bushfire Mitigation and Management supported the notion of
special treatment under the taxation system for emergency service volunteers recognising that
‘Volunteers are firm in their view that they don’t want to be paid for their services because it
undermines the volunteer ethos…….on the other hand, volunteers don’t want to be out of pocket’.
The inquiry saw emergency service volunteers as warranting special consideration because their
services ‘are not common in the volunteering sector. For example:
• The demand for them to volunteer may occur at any time of the night or day, which precludes
any ability to plan the timing and impact of their voluntary commitment.
• Hazard reduction and response activities expose volunteers to danger. Emergency service
volunteers generally face greater dangers in the course of their volunteering than do other
volunteers.
• Working conditions can be difficult, even severe, requiring extreme physical exertion and
exposing volunteers to heat, smoke, and often long periods of discomfort.
• The operational environment of a fire ground exposes volunteers to liability.
• Attainment and maintenance of compulsory basic and advanced firefighting competencies
require significant training and time commitment.9
The Bushfire Inquiry panel received advice from the Australian Government Department of
Treasury that it did not support such a measure for a number of reasons. The reasons are itemised
in Chapter 12 of the National Inquiry on Bushfire Mitigation and Management report and mainly
address the issue that tax deductions are generally allowable only where the expense is incurred
in gaining or producing assessable income and the inequitable outcome of making provisions for
reimbursement of volunteer cost under the current tax system.
Also in 2002 the NSW Department of Ageing, Disability and Home Care commissioned the
Bradfield Nyland Group to survey Home and Community Care funded organisations to develop a
profile of volunteer support and to quantify the costs incurred by volunteers. The report, which
was published in November 2002, highlights the critical importance of volunteers working in the
HACC arena as well as diverse reimbursement arrangements that are in place in HACC services.
As with research into emergency service volunteers this research found that volunteers made a
substantial contribution to the delivery of essential services and similarly reveals the limitations
in the methods and levels of reimbursement of volunteer expenses.
9 Ellis S, Kanowski P and Wheelan R. 2004 National Inquiry on Bushfire Mitigation and Management. Commonwealth of Australia, Canberra.
33
Amongst the recommendations in the Volunteers in HACC Funded Services10 report are suggestions
that: all volunteer expenses are reimbursed, that there is a consistent approach to reimbursement
and that reimbursements for actual or imputed costs by volunteers needs to be clearly
distinguished from a nominal wage or benefits provided in appreciation of volunteers.
An example of the demand for volunteer training and the need for adequate resources to enable
this to occur is the Scouts Australia Institute of Training, established as a registered training
organisation in 2004. Each year the Institute delivers some 2,000 courses to more than 30,000
adults. This is done by qualified volunteer trainers.
Recently the Institute has received requests from other youth organisations including St John
Ambulance, Guides Australia and Surf Lifesaving Australia, as well as the Australian Defence
Forces to provide assistance in their own training. Training costs are currently met by those
attending the training courses, either directly or indirectly.
7. Principles and Definitions
All the available research indicates that while volunteers work in a variety of situations and
services there is remarkable consistency in the types of costs they are incurring on behalf of the
organisation and ultimately on behalf of the Australian community. The research and literature
also reveals that there is little consistency or equity in the way that volunteers’ expenses are dealt
with.
Assessment Principles
The taskforce, cognisant of the issues for volunteers that were uncovered in the various surveys
and recommendations, developed a set of principles against which each option for dealing with
volunteer expenses could be judged. They are as follows:
1. Equity
2. Universality
3. Simplicity for volunteers
4. Simplicity for organisations
5. Simplicity for government
6. Transparency
7. Not undermining the Principles of Volunteering
8. Positive impact on recruitment and retention of volunteering.
9. Cost
10. Availability of new funding
Types of Costs
10 Bradfield Nyland Group. Volunteers in HACC Services: Survey of Home and Community Care funded organisations to develop a profile of volunteer support and quantify the costs incurred by volunteers. November 2002
34
The taskforce also recognised that there was consistency around the types of costs volunteers
were incurring:
1. Transport/petrol/vehicle costs
2. Telephone
3. Safety equipment/clothing
4. Training
5. Uniforms and maintenance
Eligibility for Reimbursement
The taskforce gave serious consideration to the matter of which type of organisations would be
eligible, or qualify their volunteers, to receive reimbursements for out-of-pocket volunteer
expenses. One of the considerations was the ability of any administrative process to ensure the
veracity of the claims lodged. The taskforce was conscious of the desire to ensure that as many
volunteers who are engaged in formal volunteering activities with not-for-profit organisations
would be eligible to receive some reimbursement of any out-of-pocket costs they incurred, while
weighing this with the need to ensure that the process of reimbursement is not unduly
cumbersome or administratively complex.
On this basis, the taskforce felt it prudent to recommend that organisations holding deductible gift
recipient (DGR) status be eligible for reimbursements or qualify their volunteers to receive
reimbursements directly. It was recognising that not all not-for-profit organisations qualify for
DGR status under current rules and therefore only some volunteers would be eligible to attract
reimbursement of expenses. It was the view of the taskforce that DGR status should be a starting
point only, with a further expansion of qualifying organisations considered following the
implementation of any of the options outlined below.
Amount of Reimbursement
The taskforce identified that one of the key factors that would affect any administrative
arrangements and budgetary impact of measures to address the costs of volunteering is the total
value of costs that would in some way be reimbursed. The taskforce gave serious consideration to
the issue and agreed that a flat-rate maximum amount per volunteer should be applied to any
claims for reimbursement of out-of-pocket volunteer expenses. In this way, the administrative
processes for providing the reimbursement could be streamlined, while ensuring that some
tangible recognition of the costs incurred in volunteering is provided.
While a definitive conclusion was not reached as to the appropriate level at which this maximum
should be set, a review of the preliminary findings of Volunteering Australia’s (unpublished) Costs
of Volunteering survey shows that in any one category of expenses the majority of respondents in
each category incurred expenses of less than $300 in out-of-pocket expenses in the past 12
months.
8. The Options
The taskforce looked at six options, three of which would be delivered through the organisation
for which the individual volunteers worked and three of which are personal reimbursements to
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the volunteer. Each option has a complex set of issues around it and are discussed below and
available as an appendix to the full report.
The taskforce also recommends criteria to ensure expenses:
• are not already reimbursed
• are directly connected with the volunteer work as set down by the organisation (working within
agreed parameters)
• are not deemed to be personal expenses of the volunteer (ie: the volunteer has incurred the
expense only as a result of their volunteering activity)
The organisational reimbursement options:
Option 1: Government grant
This option would parallel or build upon existing grant processes for example the Volunteer Small
Equipment Grants (VSEG) currently administered through FACSIA.
Organisations would apply for a grant on the basis that they have provided, or estimate that they
will provide, reimbursement of expenses to their volunteers up to a certain amount each year. As
an option this would be relatively simple for government if aligned with existing programs, but
would create an additional process for organisations wishing to apply for a grant. This option is
dependent on the organisation making the effort to apply for funds and is out of the control of the
individual volunteer.
Option 2: Government requires a reimbursement budget in funding applications
This option would require an additional investment of funds from government but would be a
relatively easy process both for government and organisations once established.
The advantage of this option is it requires some recognition from organisations of the costs that
their volunteer staff incur. It would also allow for some standardisation for reimbursement
amounts say for example mileage. The amount reimbursed to volunteers would also be a
reportable item in any grant acquittal processes thus giving volunteers a degree of certainty that
their costs would be reimbursed.
This option could readily be implemented in tandem with Option 1 so that organisations already
funded by government would receive an additional funding component for budgeted
reimbursements under their existing funding agreements, while smaller non-funded
organisations could apply for a grant through Option 1.
Option 3: Tax Credit / GST offset
This option involves organisations receiving a tax credit for the amount of funds they reimburse
volunteers for qualifying out-of-pocket expenses incurred in the course of their volunteering. This
would be provided through organisations being able to claim an offset amount for volunteer
reimbursement on their Business Activity Statement (BAS) form.
Whilst attractive from an organisational perspective and needing only minor change to the BAS
forms it does require some change to government processes. This would appear to be a relatively
simple option for government once the process change was made.
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This option does hold a couple of difficulties in that some organisations may not be registered for
GST or lodge a BAS. If organisations are registered this is still no guarantee that volunteers will
gain the benefit; one of the uncertainties for volunteers is that reimbursement from this source
could be directed to volunteers at the discretion of the organisation.
The personal reimbursement options:
Option 4: Personal tax rebate / offset
Of the personal reimbursements through the taxation system this appears to be the most
equitable although not universally available if there is restriction, say DGR status, on the type of
organisation for which the individual volunteers. One of the recommendations for all options is
that payments are capped. From an organisations point of view this probably creates extra work if
expenses needed to be verified or organisations tax status needed to be demonstrated.
For government the downside to this option, as with a personal tax deduction is that it requires
legislative change and is not easily quantifiable in terms of anticipated take-up.
Option 5: Personal tax deduction
This option has been suggested many times but interestingly has been largely discredited by
volunteers themselves who recognise that it is inequitable for a great number of volunteers who
do not pay tax. It is also widely recognised that volunteers with the highest income are the
greatest beneficiaries of this particular treatment of costs. As the cost of volunteering is now
identified as one of the disincentives to participation this measure has little currency with the
general volunteering population.
Option 6: Personal grant administered through an existing government agency
Under this option volunteers would be responsible for lodging their ‘request for reimbursement’
via a claims process that could be administered through an agency such as the Health Insurance
Commission. Similar to Medicare rebates, this option would require the volunteer to lodge a claim
for reimbursement, along with required evidence or statement of their expenditure, and the
relevant amount of reimbursement (up to the capped maximum) would be paid direct to the
volunteer’s nominated bank account or paid by cheque. It is envisaged that this claim process
would be an annual once only.
The criteria for all other options would apply here, for example the capping of the amount to be
reimbursed, verified expenses, registered organisation etc. This option would naturally create
some changes in procedures in the administering agency, additional funding from government
would be required as would proper record keeping by volunteers and verification procedures
from organisations. It meets the principles of equity, although given the restriction on
organisation types like all other options does not provide universal advantage to volunteers.
Recommendations
The taskforce recommended that government consider the options outlined here and adopt one
or a combination of these for implementation in order to support the work of volunteers by
providing tangible recognition of the costs they incur in volunteering.
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Conclusion
Clearly the cost of volunteering is not an issue to be ignored. The value of volunteering to the
Australian community and economy is staggering. Australians are enthusiastic volunteers
embracing the notion of shared responsibility for the kind of Australia we want for ourselves and
others. Rising costs of volunteering however are becoming a disincentive to potential volunteers
and creating problems for the already committed volunteer.
Much of the research and literature tells us that volunteers work in all types of organisations and
under a variety of conditions. Now is the time to offer some form of assistance and recognition to
volunteers who are keeping our essential services going, maintaining community services and
adding levels of vibrancy in our small rural communities. The taskforce hopes that government
will consider these options for dealing with the rising costs of volunteering and implement one or
more of the suggestions to alleviate the pressure volunteers are experiencing.
Contact details
Any inquiries about this specific “The Rising Costs of Volunteering” report should be directed to:
Volunteering Australia Suite 2, Level 3
11 Queens Road
Melbourne VIC 3004
P: 03 9820 4100
F: 03 9820 1206
Contact details
Any inquiries about these Elections Policies should be directed to:
President
NSW SES Volunteers Association
Unit 1, 2-6 Lindsay Street,
Rockdale NSW 2216
P: 13000 SESVA
F: 02 9267 7038
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“Volunteers Supporting Volunteers”
ABN 21 688 925 780.
ALL MAIL TO: NSW SES VA, Unit 1, 2-6 Lindsay Street, Rockdale NSW 2216
