I haven't heard that before, but I'm based in Melbourne.
I would call the NSW Office of Industrial Relations on 131 628 and they will clarify that for you.
If you have a sick leave certficate I can't see why they won't give you sick leave.
I did this but I left work a week earlier than I had planned for Mat Leave so took that extra week as a mixture of sick leave and flexi leave. Once I have exhausted my Mat Leave entitlement, I am being paid my Annual Leave entitlement (because you keep accruing it whilst on Mat Leave) and then the remainder of my time off is leave without pay. I would definately check it out with the relevant body in your state - I can't imagine that there would be different rules for award Vs above award wage workers because that would be discrimination? I hope you can get some answers!
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