CONTRACT STAFF REMUNERATION Vision 2015: to provide a leading benefits structure remuneration & benefits that attract and retain the right caliber employee

Remuneration Methodology HayGroup job evaluation methodology 3 step process: 1Job Evaluation 2Market Assessment 3Fit to Person Job Value MarketPerson

1 Job Evaluation Assigns a value to each position Points allocated for: - knowledge required - level of problem solving required - level of accountability Total number of points adds up to a value Parity between teams and across portfolios Senior Managers trained in methodology Evaluation Committee = HR Manager + job expert + independent

2 Market Assessment HayGroup database – PayNet 204,602 jobs from 445 organisations nationally Database broken up into units of revenue, industries, location, number of employees, ownership IRT’s remuneration pitched at national level, all industries, all units of revenue HayGroup recommendation to exclude banking/finance and resources sectors – negligible difference in outcome

2 Market Assessment continued Market position – 50 th percentile IRT remuneration levels no longer constrained by : - Not for profit sector - Regionally based A fantastic attraction and retention strategy! The right people in the right jobs

3 Fit to Person Job value is assigned a level reflected in PayNet Pitching at the 50 th percentile (ie mean) Remuneration range - +/- 20% Range determined by how encumbent fits the three elements in the HayGroup job evaluation process Enables opportunities to have salary reviews as you develop into the job

In Summary: Job Value MarketPerson

Fixed Annual Reward (FAR) FAR allows employees choice in the types and values of benefits within remuneration package. Example employee 1:Example employee 2: (car – existing arrangements)(car cashed out) Base $85,000 Super $ 7,650 IRT supplied motor vehicle $15,000 FAR$107,650 Base $100,000 Super $9,000 No motor vehicle $0 FAR$109,000

Motor Vehicles To 31 March 2011: Motor Vehicles – fortnightly deductions of IRT annual cost 25,000kms paCommodoreAstra Hatch Purchase Price$27,900$20,200 15% $4,185$3,030 Interest at 4.5%$1,256$909 11%$3,069$2,222 25,000km$2,861$2,100 Rego$660$587 Insurance$300 Service$150 IRT Annual Cost$12,481$9,298

Motor Vehicles continued Post 1 April 2011: IRT Motor Vehicle Policy amended – to allow external/internal novated leasing options Class 1 motor vehicles (significant business kms) – encumbent pays 1/3 IRT annual cost for private use All IRT Class 4 motor vehicles to be sold: - If motor vehicle is part of pre 1 April 2011 FAR, encumbent can purchase vehicle from IRT; or - pursue a novated lease through IRT, Epac or other provider All business kms to be claimed as per policy

Contracts Insert new clauses: intellectual property non-competition Deletion of clause: leave loading All leave loading entitlements will cease from 1 April 2011

Salary Packaging Tax benefit currently is 0% From 1 April 2011 tax benefit will be 50% in line with Collective Agreement staff 0% tax benefit (pre 1 April 11) 50% tax benefit (post 1 April 2011) BASE$100, Packaged$16, Disposable Income $73,550.37$77, Increase$0$4, Equiv Gross Salary $100,000.00$106,960.00

Where to from here 1:1 meeting to discuss your remuneration Salary increases to be backdated to 1 July 2010 If job value is lower than current remuneration – pay will be “grandfathered” Presentation from Epac on novated leasing

Questions