Baw Baw $3 million super liability ‘a huge issue’
Baw Baw News By William PJ Kulich // 15:59, Friday 10 August 2012
THE BAW BAW Shire Council is unsure how it will raise a required $3.63 million for its liability to a superannuation benefits fund by July next year.
The council received notification of the figure yesterday, which includes over $3.4 million for council employees and $214,000 for the West Gippsland Regional Library’s liability.
The figure is about 10 per cent of Baw Baw’s total rates revenue, and Baw Baw Shire CEO Helen Anstis said the council is unsure of how it will pay.
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“This is a huge issue, not just for Baw Baw but for all councils and many other municipal authorities,” Ms Anstis said.
“Obviously we’re hoping that Municipal Association of Victoria can persuade state and federal governments to assist councils with this financial burden.”
“In all honesty, if Baw Baw is required to pay a lump sum of $3.6 million in eleven months I cannot tell you where that money will come from.”
“We’ve budgeted $750,000, but as for the rest, I just don’t know. I can tell you that we’re determined to avoid borrowing the money if we can.”
Ms Anstis today told ABC Gippsland the council was told to only expect a liability of around $750,000.
The benefits fund ended in 1993.
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