Superannuation salary packaging
What is salary packaging of superannuation contributions?
It is organising your salary so that your income (or Pay As You Go – PAYG) tax is reduced. Basically you pay the cost of the benefit from your ‘before tax' salary. If the benefit attracts fringe benefits tax or any administration fee, that is also paid from your ‘before tax' salary.
Salary packaging your superannuation contributions results in an increase in take home pay, after income tax is paid. These arrangements can increase your effective take home pay by as much 4.4% depending on your classification level.
In addition to the current standard option to salary sacrifice compulsory employee contributions to superannuation, an additional option to make additional voluntary before-tax (salary sacrifice) contributions to your superannuation is also available.
All University employees who are members of the exclusive superannuation providers of the University will be eligible to make additional voluntary before-tax (salary sacrifice) contributions to their respective superannuation funds within the rules of the superannuation fund and on the condition that the employee receives adequate regular fortnightly pay from the University.
The decision to enter into the salary packaging arrangements will be a personal decision for the employee. The University strongly advises that the employee should consult a licensed financial adviser before making the decision and must sign a declaration to this effect prior to the commencement of such arrangements. The cost of this professional advice will be the responsibility of the employee. The University will accept no liability whatsoever in respect of any salary packaging arrangement undertaken by an employee.
Please note that the decision to salary package your superannuation benefits is entirely voluntary. All other conditions of your employment remain exactly the same.
Additional taxation information regarding salary sacrificing of superannuation is available, however this information is not intended to be in lieu of seeking professional financial advice.
What are the steps to accessing salary packaging of superannuation contributions?
Step 1 - Read the information on this web site. Employees are strongly advised to seek independent financial advice prior to entering into a salary packaging arrangement. The University will accept no liability whatsoever in respect of any salary packaging arrangement undertaken by an Employee.
Step 2 - Before the University can make the necessary arrangements, you must provide Payroll with authority to alter your remuneration arrangements by completing the Salary Packaging of Superannuation Authority Form.
Step 3 - After completing the necessary forms and seeking professional financial advice, send the completed and signed forms to firstname.lastname@example.org
Step 4 - Payroll will process the forms and the originals will be retained on your personal file.
Should you wish to cease your salary packaging arrangement you are required to complete and sign a Salary Packaging of Superannuation Cancellation Form.