Public hospitals and health services will be funded by the Budget Payment System (BPS) as part of the payment on 10 April 2018. Users of the Healthcollect portal can view the details of this payment through the portal. Figure 1 below shows how the MFD would be calculated for a hospital with a salary base of $100,000. DFM indexation, considered a DFM indexation, is calculated on the basis of the corresponding salaries at the time of the expiry of the prior enterprise agreement. DFM compounds at a rate of 2.5% per year after that. To be eligible, the doctor must have been employed by a public hospital or health service as of January 1, 2018 in order to benefit from the payment of the signature either under the new DIT agreement or under the new specialist agreement. The Fair Work Commission can also help employers and workers who are embarking on the “New Approaches” program. Learn more about the new approaches on the Fair Labour Commission website. For the current business negotiation cycle (2015-2017), the department, in its budget modelling, referred more directly to the high staff profile of each public hospital or health service than in previous cycles, where budget modelling focused more on “whole sector profiles.” This will eliminate some of the most serious “swings and roundabouts” that could have resulted from the previous approach. However, this funding approach remains in its overall “output-based” nature.

The proposed new enterprise agreements include a number of savings/compensation provisions and benefits from the service delivery partnership plan agreed between the parties. Achieving these benefits will help cover the ongoing implementation costs of new or improved staff services. The amount of additional funding to be granted includes these savings/compensations. The proposed new enterprise agreements provide for four annual wage increases of 3% for the first full salary periods, which will begin on January 1, 2018, January 1, 2019, January 1, 2020 and January 1, 2021. An additional salary increase of 6% is also due from the first full pay period from or after 1 January 2018, so that the overall wage increase of 9% must be paid from that date. As stated in the hospital cover letter, notifications will not be paid until the new agreements are approved by the Fair Work Commission and these new agreements formally come into force. The funding allowance for the impact of salary increases and other changes in the 2017-18 fiscal year is provided by a certain grant. The current effects of these increases and subsequent salary conditions will be incorporated into hospital/public health care budgets from 2018/2019. Since the annual wage increases under the proposed new enterprise agreement exceed the government`s usual wage increase of 2.5% per year, the government has agreed to provide a financing bonus equal to the difference between the annual wage increases described in the proposed new enterprise agreements and the standard rate of 2.5% per year.