Fact Sheet
Voluntary Separation
Packages (VSP) FAQs
Contents
What is a VSP? .................................................................................................................... 2
How does a VSP differ to a TVSP? ..................................................................................... 2
VSP Calculations & Payments ..................................................................................................... 2
How is a VSP calculated? .................................................................................................... 2
Am I eligible for the $15,000 lump sum payment? .............................................................. 3
I am part time and suspect I am eligible for the $15,000 lump sum payment. Will this lump
sum payment be pro rata requirements? ............................................................................. 3
Is a VSP taxed? ................................................................................................................... 3
Will the formal VSP offer include the full details of my final payment? ................................ 3
Can I get an estimate of my VSP payment? ........................................................................ 4
How do I use the VSP estimator? ........................................................................................ 4
What does a week's pay include?........................................................................................ 4
What impacts my years of service for the purpose of a VSP calculation? .......................... 4
How will I know what my years of service are? ................................................................... 5
I have worked part time during my service. How does this impact on my overall years of
service for the purpose of calculating my VSP entitlement? ............................................... 5
I have had periods of leave without pay (for example, unpaid Maternity Leave). How do I
estimate my potential VSP payment amount? ..................................................................... 5
My substantive position/role is part-time, but I have been working additional hours over
the last year. How will my VSP be calculated? .................................................................... 5
How does a VSP impact my superannuation? .................................................................... 5
Does the VSP payment attract superannuation normally payable on salary? .................... 5
Does the balance of leave entitlements that are paid out at separation attract
superannuation? .................................................................................................................. 5
What happens to my leave, does it get paid out? How is it taxed? ..................................... 6
Are my salary sacrifice arrangements included when determining my average weekly
pay? ..................................................................................................................................... 6
I am 65 years older or over. Is there anything extra I need to know? ................................. 6
Considering your VSP offer .......................................................................................................... 6
What are the conditions related to accepting a VSP? ......................................................... 6
How long do I have to wait before I can apply for another SA Government position after
accepting a VSP? ................................................................................................................ 6
How do I know the duration of my exclusion period? .......................................................... 6
Where can I find the government TVSP guidelines? ........................................................... 7
What is a VSP?
A Voluntary Separation Package is covered under similar rules to a ‘targeted’ separation
package, but allows people to volunteer and put their hand up by expressing an interest
instead. See more information below.
If an employee expresses an interest in a VSP, and progresses through the eligibility
requirements they may then be provided with a formal VSP offer. If the employee accepts the
VSP offer, their employment will come to an end and they will be provided a sum of money in
respect of that decision.
How does a VSP differ to a TVSP?
A TVSP or targeted package is offered when the organisation plans to abolish specific roles, for
example as a result of a change process, restructure and/or change in workload / activity /
work. In simple terms, and in comparison, a VSP is requested by the employee (it is voluntary)
and if the employee is eligible, a VSP is formally offered.
VSP Calculations & Payments
How is a VSP calculated?
The basis of a VSP is payment of 10 weeks' pay, plus an additional 2 weeks' pay for each
completed year of service, up to a maximum of 52 weeks' pay.
To help you estimate your payment, we have developed a table based on years of service
which shows how many weeks' of pay you would be likely to receive:
Years of service
Weeks of pay
Years of service
Weeks of pay
Base amount
10
11
32
1
12
12
34
2
14
13
36
3
16
14
38
4
18
15
40
5
20
16
42
6
22
17
44
7
24
18
46
8
26
19
48
9
28
20
50
10
30
21 +
52
The TVSP Guidelines also set out further detail about the calculation methodology including the
eligibility for a $15,000 lump sum payment which is in addition to the VSP payment.
You may also wish to utilise the VSP Estimator tool. See FAQ below for more information.
For Official Use Only – I2 – A1
Am I eligible for the $15,000 lump sum payment?
There are some groups of employees that will be eligible for the $15,000 lump sum payment,
while others will not be eligible.
Eligible employees – South Australian Modern Public Sector Enterprise Agreement:
Salaried 2017
If you are employed under the South Australian Modern Public Sector Enterprise Agreement:
Salaried 2017, you are likely to be eligible for the $15,000. This EA includes employees in the
following classification streams:

AHA

AHP

ASO

GFS

MES

OPS

PO

TGO
Eligible employees – Nurses and Midwives
Appendix A Section 3 of the Nursing and Midwifery HR Principles (February 2017) states
“Where Nurses or Midwives accept an offer of a TVSP within the first three months of being
declared excess they will be paid a lump sum payment of the $15,000 plus a TVSP”.
Ineligible employees
If you are not employed under the South Australian Modern Public Sector Enterprise
Agreement: Salaried 2017 or covered by the Nursing and Midwifery HR Principles, the TVSP
Guideline relevant to you does not make allowance for the $15,000 and you are therefore not
eligible to receive the lump sum payment.
I am part time and suspect I am eligible for the $15,000 lump sum payment. Will this
lump sum payment be pro rata requirements?
No, the $15,000 lump sum payment is not subject to pro rata requirements. If you are or have
been part-time and are eligible to receive the payment, you will receive the full $15,000.
Is a VSP taxed?
Yes, however a VSP payment is usually subject to concessional tax treatment. You are
encouraged to seek independent financial, superannuation and taxation advice (at your
expense) to ensure you make a decision in your best interests.
Further information about tax treatment can be found in the relevant TVSP Guideline.
Will the formal VSP offer include the full details of my final payment?
Yes. Enclosed with your formal VSP documentation will be a comprehensive calculation
document. This document includes full details of your estimated VSP entitlement and any
accrued leave balances such as long service leave, retention leave and annual leave that are
payable as at your agreed date of separation.
For Official Use Only – I2 – A1
Can I get an estimate of my VSP payment?
Yes, you can estimate your VSP payment by using the FAQs, the VSP estimator and the
relevant DTF TVSP Guideline.
Important note: The material and information provided is for general information purposes only.
While every attempt has been made to ensure that the correct source data has been obtained,
CALHN is not responsible for any errors or omissions or for outcomes as a result of the use of
the information or materials provided – given the general nature of that information at this
stage. Any reliance you place on the information and / or material provided is strictly at your
own risk. We strongly recommend you discuss your personal circumstances with a relevant
and independent advisor prior to making any decisions. Such advisors might include an
accountant, lawyer, taxation specialist, financial planner, superannuation advisor or other as
appropriate.
How do I use the VSP estimator?
The VSP Estimator Tool has been created to assist you with a simple estimate of what you
may be entitled to as a VSP payment. The estimator tool is a guide and does not cover the
range of inclusions across all employee types.
To use the estimator, download the tool (XLSX 24KB) and enter required details where indicated.
You will receive an estimate of your potential VSP payment and leave payout details.
Please note: The VSP estimator tool does not include the $15,000 lump sum payment in the
VSP estimation.
What does a week's pay include?
A weeks' pay is calculated on gross ordinary time earnings for the 12 months prior to
resignation, converted to a weekly rate.
This does not include:

attraction/retention allowances

leave loading

payments for overtime

salary sacrifice

higher duties.

VSP calculation will also be impacted by:

Workers compensation/return to work payments

Leave without pay. Uploaded 5/9/2019
What impacts my years of service for the purpose of a VSP calculation?
Your years of service are based on your continuous period of employment up to the effective
date of separation.
The following factors may impact your years of service:

periods of special leave without pay

absence from employment due to national service

a break in services of less than 3 months before taking up employment in the same/another
SA public sector agency

resignation from the public sector as the result of pregnancy or birth of a child prior to the
introduction of maternity/parental leave

employment with the Repatriation General Hospital at 9 March 1995 (date of transfer)

employment outside the public sector with respect to:
For Official Use Only – I2 – A1

the transfer of the corporate affairs power

the privatisation of the Electricity Trust of SA

the transfer of state health professional regulatory entities

the antecedent Animal and Plant Control Board.
How will I know what my years of service are?
This relates to your government start date and can be accessed in the HR21 portal. Please
keep in mind your total service period is affected by breaks in service such as periods of leave
without pay.
I have worked part time during my service. How does this impact on my overall years of
service for the purpose of calculating my VSP entitlement?
A VSP entitlement is calculated based on 10 weeks’ pay, plus 2 weeks’ pay for each completed
year of service up to a maximum of 52 weeks. Your overall years of service will be reduced to
reflect your actual FTE status.
The DTF TVSP Guidelines state: where an employee has worked on a part-time basis for any
period during the 12 months prior to separation/termination, a ‘week’s pay’ for the purposes of
calculating a TVSP payment means their full-time equivalent gross ordinary time earnings.
I have had periods of leave without pay (for example, unpaid Maternity Leave). How do I
estimate my potential VSP payment amount?
The DTF TVSP Guidelines states: For the purpose of determining a week’s pay in calculating a
TVSP payment for employees who have been on leave without pay (for reasons other than
employment in another South Australian Public Sector agency, i.e. parental leave or leave
without pay to work in a non-South Australian Public Sector agency) for all or part of the 12
month period preceding the date of effective separation/termination, the agency shall calculate
the gross ordinary time earnings as if the employee had been on duty and eligible to be
remunerated.
My substantive position/role is part-time, but I have been working additional hours over
the last year. How will my VSP be calculated?
As per full-time employees, except that where an employee has worked on a part-time basis for
any period during the 12 months prior to separation, a ‘week’s pay’ for the purposes of
calculating a VSP payment means their full-time equivalent gross ordinary time earnings.
How does a VSP impact my superannuation?
How a VSP will impact your superannuation depends on the scheme you are in and your age
at time of separation from the public sector.
Further detail can be found within the relevant TVSP Guidelines, or by contacting Super SA /
your Superannuation Fund.
Does the VSP payment attract superannuation normally payable on salary?
No, the VSP payment does not attract the 9.5% superannuation contribution.
Does the balance of leave entitlements that are paid out at separation attract
superannuation?
No, leave entitlements paid out at separation do not attract the 9.5% superannuation
contribution. This would be the case even if there wasn’t a VSP process.
For Official Use Only – I2 – A1
What happens to my leave, does it get paid out? How is it taxed?
Following acceptance of a VSP offer and separation from CALHN, all leave balances
outstanding at the date of separation, including any long service leave, retention leave and
annual leave (including leave loading), will be paid to the employee. These balances are not
paid out as a redundancy payment; instead are subject to tax as per normal pay. Accrued sick
leave is not paid out to an employee at the end of employment or in relation to a VSP offer.
Are my salary sacrifice arrangements included when determining my average weekly
pay?
The DTF TVSP Guidelines state: a ‘salary sacrifice agreement’ is a formal agreement between
the employee and the employing agency relating to certain salary sacrifice arrangements.
Employees should note from the definition of week’s pay that the TVSP payment is calculated
as if the employee had not been subject to a salary sacrifice agreement.
I am 65 years older or over. Is there anything extra I need to know?
There may be taxation implications for employees aged 65 or over who accept a VSP. Broadly,
the tax concessions generally available do not apply when you are 65 or over. More information
can be found on the Australian Taxation Office website. As with all general information
provided, you should seek advice in relation to your specific circumstances.
Considering your VSP offer
What are the conditions related to accepting a VSP?
Once you have accepted the formal offer of a VSP you are not eligible to be re-engaged in the
SA public sector for a period equivalent to the total number of weeks’ paid to you as part of
your VSP, effective from the date you are separated. This is referred to as the ‘exclusion
period’. During your exclusion period you are also ineligible to:

be contracted to the state government

derive income from a third party contracted by the SA government.
The conditions relating to accepting a VSP as well as exclusion period information can be
found in the DTF TVSP Guideline.
How long do I have to wait before I can apply for another SA Government position after
accepting a VSP?
Once you have accepted a VSP you are not eligible to be re-engaged in the SA public sector
for a period equivalent to the total number of weeks' paid to you as part of your VSP, effective
from the date you are separated. This is referred to as the “exclusion period”.

During your exclusion period you are also ineligible to:

Be contracted to the state government.

Derive income from a third party contracted by the SA government.
The conditions to accepting a VSP as well as exclusion period information can be found in the
relevant VSP Guideline.
How do I know the duration of my exclusion period?
The number of weeks your VSP entitlement is based on is included in your VSP estimate
calculation document. This number of weeks equals your exclusion period and applies from the
date your employment ends.
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Where can I find the government TVSP guidelines?
The Department of Treasury and Finance is responsible for the Targeted Voluntary Separation
Package (TVSP) Guidelines.
The guidelines which are applicable to in-scope CALHN employees for the purpose of calculating
a VSP payment are:
Targeted Voluntary Separation Packages (applicable to employees covered by the South
Australian Modern Public Sector Enterprise Agreement: Salaried 2017)
o
This applies to: ASO, AHP, AHA, TGO, OPS, PO, MeS employee classifications.
Targeted Voluntary Separation Packages (applicable to employees other than for weekly paid
or salaried employees)
o
This applies to all other employment groups apart from Salaried and Weekly Paid
employees.
For Official Use Only – I2 – A1