FAQs about direct debit of union subscriptions

by John Dixon

What is direct debit?

An arrangement between the Federation, you and the bank, building society or credit union of your choice to pay your union fees on a fortnightly basis coinciding with your pay days.

What are automatic credit card payments?

An arrangement between you and the Federation to automatically pay your union fees direct from your nominated credit card on a fortnightly or monthly basis. Any Visa or MasterCard can be used for this payment method.

Do all banks, building societies and credit unions have facilities for direct debit?

Most do, but not all. Direct debit is available on all 'key card' accounts and some passbook accounts. If in doubt, check with your bank. All you need to do is ensure that your nominated bank account can accept direct debit and has enough funds to cover the direct debit on the day it falls due.

What about the Teachers Credit Union?

The NSW Teachers Credit Union already offers direct debit payments for NSW Teachers Federation fees. More than 3000 members have been using this method of payment for a number of years. Because of the arrangements the union has with the NSW Teachers Credit Union, Federation would recommend that if you have a Teachers Credit Union account you use it for the direct debit of union fees.

Will there be any bank charges?

Generally no, although some banks on some selected accounts may charge a transaction fee. Federation will pay for any bank dishonour charges which are not your fault, however, a direct debit payment does count as a transaction and will therefore affect accounts with a set number of free transactions a month. Similarly, if there are not enough funds in your account to cover your direct debit on the day it falls due, your bank/credit union will advise the union and Federation will contact you to make alternative arrangements. Your bank may charge you a dishonour fee.

Can the union deduct more money than is authorised?

Absolutely not. Federation can only collect the amount of union fees applicable to your circumstances. Additional amounts for outstanding fees will only be debited/charged if you specifically authorise us to do so.

What if my circumstances change?

If your workplace or financial arrangements change, or you have any questions about your direct debit arrangements, simply contact Federation on 1300 654 363.

What about my privacy?

All your direct debit or credit card information is kept totally confidential.

What about tax deductibility and union fees?

All union fees are fully tax deductible. Simply call Federation on 1300 654 363 if you require a statement for tax purposes. The union will automatically send each member a tax invoice statement of fees paid in the financial year via email or post at the end of each financial year for tax purposes.

What is a BSB number?

A BSB number is a unique number which identifies both the bank and the branch of a particular account in Australia. The NSW Teachers Credit Union BSB is 802-194.

What if I don't know the BSB number of my bank or credit union account?

If you do not know the BSB number of your financial institution, please complete the form without the BSB number with the name of the account, the financial institution and the branch. We will then be able to fill in the BSB number for you.

Apart from direct debit and auto-credit card payments, are there other ways to pay union fees?

Yes. Federation offers direct credit card payments which can be arranged over the phone. The union also has three month, six month or 12 month invoices which can be posted to you at home or at work. In addition, it is possible to pay your union fees online at the Federation's website, www.nswtf.org.au or via BPay.

Is it possible to keep using the payroll deduction system?

Yes, currently teachers are covered by a state award and neither the Department of Education and Training nor the State Government has indicated that payroll deductions will cease. However, twice in the union's history a state government has withdrawn payroll deductions as a weapon in industrial disputes. With a state election in March 2007, an incoming state government may cede their industrial relations powers to the Federal Government. There is therefore lingering uncertainty over the future of payroll deductions for union fees and the union believes now is the right time to move away from payroll deductions. Obviously those members who do not have credit cards or direct debit facilities, or who do not want to pay their union fees by invoice, may wish to continue with payroll deductions.

How do I switch payments from payroll deduction?

Just complete the Make the Switch form or go to the Federation website at www.nswtf.org.au and complete the secure payments forms. Federation will then arrange for your deductions to cease with the DET and then begin your direct debit or auto-credit card payments with the appropriate financial institution. Do not send the form to the Department of Education and Training or your financial institution. Send the form directly to Federation.

To find out more, talk to your Federation Representative, your local Federation Organiser or call on 1300 654 363.

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Last Modified: 06 Apr 2006