Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

The Australian Taxation Office (ATO) utilises Hoders Pty Ltd to provide a specified range of reward and recognition items. Hoders Pty Ltd was the successful tenderer to supply two categories of recognition items under the ATO's Reward & Recognition Scheme – Separation (Milestone) Gifts and Recognition (Line) Awards.

The ATO established a formal Reward and Recognition policy to enable the provision of recognition and rewards to its employees for various endeavours in 2002.

Until early 2010, items were purchased through various processes and providers. A review in 2009 of the scheme identified that this process was administratively onerous on the ATO and placed an initial financial burden on employees. A better way to manage this policy was investigated and it was identified that other public service agencies – both State and Federal – utilise a web based system for provision of award items.

(a) (i) A defined range of products are available to be selected in both categories of recognition. The individual value is determined by taking into account advice provided on fringe benefit tax (FBT) implications, as well as public perception considerations. Therefore, the choices available do not include anything that constitutes entertainment – for example, restaurant / meal vouchers, movie tickets and alcohol. The value of separation gifts are also determined by the total years of service with the APS.

The approved range of goods includes watches, jewellery, audio visual, tableware, sports equipment, optical goods, luggage, crystal, clocks and accessories. A detailed list is provided at Attachment A.

(a) (ii) For the period February 2010 to end of May 2011, 754 items have been chosen by eligible employees under the ATO's Rewards and Recognition Scheme and purchased by the ATO through Hoders Pty Ltd. A detailed list is provided at Attachment A.

(b) (i) The purchases were made for separation gifts and line awards.

Separation gifts are awarded to staff with 20 years or more of service who are leaving the organisation. Tenure milestones are recognised through formal certificates unless that employee is separating from the organisation. From February 2010 until end of May 2011, 728 employees achieved tenure of over 20 years on leaving the ATO. The value of gifts awarded is dependent on the length of service in the APS as outlined below:

A detailed list of the separation gifts (noting that not all 728 eligible recipients have chosen their gift at 31 May 2011) purchased through Hoders Pty Ltd is provided at Attachment A.

Line awards are given as either individual or team awards in recognition of high performance. There is a 6 month cycle for nominating and awarding line awards, resulting in an average of 130 awards per financial year. The line award results from the February 2011 round are shown below:

A detailed list of the line awards (including those for rounds prior to February 2011) purchased through Hoders Pty Ltd is provided at Attachment A.

(b) (ii) The total cost of these purchases, excluding GST and delivery costs, for the period February 2010 to end of May 2011 is $119,670. Further details are provided at Attachment A.

ATTACHMENT A