1. No category

Salary
Packaging
Manual
Version 4.2
6 August 2012
http://www.sharedservices.act.gov.au/docs/Salary_Packaging_Manual.pdf
Table of Contents
Contents
Page No
Disclaimer
Explanation of Terms
1.0
Introduction
1.1
Salary Packaging Overview
1.2
Salary Sacrifice Arrangement
1.3
Effective Salary Sacrifice Arrangement
1.4
What are the Salary Implications for Employees
1.5
Who can participate in Salary Packaging
1.6
Existing Salary Packaging arrangements with ACTPS External
Salary Packaging Providers
1.7
To Commence Salary Packaging
1.8
Independent Financial Advice
1.9
Employee Responsibilities in the Administration of a Salary Package
2.0
Package Items
2.1
Category A - Exempt Benefits – e.g. Notebook/Laptops
2.2
Category B - Concessionally Taxed Benefits
(Superannuation/Motor Vehicles)
2.3
Reportable Fringe Benefits
2.4
Fringe Benefits Tax (FBT)
2.5
Input/Tax Credits and the GST
4.0
Administration Fees
5.0
Payments
6.0
Changing or Terminating the Package
7.0
Leave without Pay or LSL/Annual Leave Half-Pay
8.0
Superannuation
8.1
Super Surcharge
9.0
Statements
10.0
FBT Declaration – Novated Motor Vehicle Leases
11.0
Contact with Salary Packaging Team
Annex A
Salary Packaging Agreement and Declaration
Schedule 1 Menu items available for Salary packaging
Schedule 2 Approved Service Provider
Annex B
Salary Packaging Authorisation/Deduction Approvals
Annex C
FBT Declaration
Annex D
List of Supported Superannuation Funds
Annex E
List of Accredited Financial Advisers
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Disclaimer
This publication has been prepared without consideration of the particular investment
objectives, financial situations and needs of Territory employees (“employees”). In all cases,
employees must conduct and rely upon their own investigation and analysis of the information
contained in this publication. No employee should act on the basis of any matter contained in
this publication without considering, and, if appropriate, obtaining legal, financial and other
professional advice upon the employee's particular circumstances.
The actions of the employer, and Shared Services (SS), as the salary packaging administration
provider, in making payments to a third party for employment benefits in accordance with an
employee’s salary package do not in any way imply a transfer of liability to the Territory, or the
provider (SS), in relation to any agreement,* understanding or obligation between the employee
and the third party.
The Australian Capital Territory Public Service (“ACTPS”), each of its employees, employees of
Shared Services and every person involved in the preparation of this publication expressly
disclaims all liability for any loss or damage of whatsoever kind (whether foreseeable or not)
which may arise from any person acting or relying on any statements contained in this
publication, and notwithstanding any negligence, default or lack of care.
Employees should not assume that any item or matter not covered by this manual is
available for packaging but should seek clarification of the matter from the Salary
Packaging Team, Shared Services.
While this publication discusses taxation at a general level, given the complexity of taxation
legislation, individual circumstances may produce particular results. Each person wishing to
take advantage of remuneration packaging is required to take financial advice.
This disclaimer does not limit or alter those statutory rights that cannot be excluded.
Please be aware, Financial Planners do not determine the Shared Services administrative
policy on salary packaging. Consequently you need to be familiar with the Shared Services
approved items and arrangements. If in doubt about any aspect, contact the Salary Packaging
Team, Shared Services.
Acknowledgements
Some of the information contained in this publication was obtained, with permissions, from a
number of sources including:
• Australian Federal Police (AFP) Salary Packaging Manual and AFP Human Resources
Director Canberra ACT
• ACTPS Salary Packaging Policy and Procedures June 2006
• Commander (previously Computerquest Pty Ltd) Braddon ACT
• Teachers Credit Union (TCU)
• Melbourne Systems Group registered owners of Salpac Salary Packaging software.
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Explanation of Terms
Unless stated otherwise, terms referred to in this document have the following meaning:
Concessionally Taxed Items
Refers to those package items that do not attract full FBT.
Employee Contribution Method
Refers to after-tax salary package contributions made by an
employee to reduce the employee’s FBT liability.
Exempt Items
Refers to those package items that are exempt from FBT.
FBTAA
Refers to the Fringe Benefits Tax Assessment Act 1986.
FBT
Refers to the Fringe Benefits Tax imposed by the FBTAA.
Full FBT Items
Refers to those package items that are subject to the full
rate of FBT.
GST
Refers to the tax imposed as Goods and Services Tax by
the GST Act.
GST Act
Refers to the A New Tax System (Goods and Services Tax)
Act 1999.
Gross Salary
Represents an employee’s cash salary before tax is deducted.
Input Tax Credits
Refers to an entitlement arising under the GST Act.
ITAA
Refers to the Income Tax Assessment Act 1997.
Novated Lease
Under a novated lease, the employee’s obligations under a
finance lease agreement are transferred (novated) to the
employer for the term of the deed of novation.
Otherwise Deductible Items
Refers to those package items for which an employee
would usually claim a tax deduction. An employee cannot
claim a tax deduction for such package items if they form
part of the employee’s salary package.
PBI
Organisations which have the status of a Public Benevolent
Institution under the FBTAA.
Reimbursement
Refers to the repayment to an employee of monies
originally paid out by the employee for package items, upon
receipt and product of original receipted accounts.
Salary Packaging
Refers to an arrangement between an employee and the
employer whereby the employee elects to exchange cash
salary for non-cash benefits. Non-cash benefits can be
taken as a range of package items provided for in this
document.
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1.0 Introduction
Following initial approval by the Commissioner for Public Administration in 2003, the ACT
Department of Education and Training (DET) was given approval to administer salary packaging
“in-house” under a trial arrangement to enable DET and Canberra Institute of Technology (CIT)
employees to access a limited range of package items internally. The DET “in-house”
arrangements were extended to all ACTPS staff from other ACTPS agencies where a
Memorandum of Understanding (MOU) existed between DET and the agency.
From 1 February 2007, Shared Services (SS) administers the “in-house” salary packaging
administration that was previously administered by DET, for all ACTPS agencies.
This manual should be read in conjunction with the ACTPS Salary Packaging Policy and
Procedures June 2006.
1.1
Salary Packaging Overview
Salary packaging is a legal process whereby an employee, with the approval of the employer,
can take their salary as a combination of cash and non-cash benefits. For example, the
payment of a novated lease and running expenses associated with a motor vehicle, a laptop
computer or supplementary superannuation may be packaged. There is no PAYG tax payable
on these benefits when salary is packaged. The non-cash benefits are paid for from the
employee’s pre-tax salary. Under a salary packaging arrangement a combination of income tax
(PAYG) and Fringe Benefits Tax (FBT) replace the income tax normally payable on the
employee’s pre-tax salary. The level of FBT depends on the type and value of the benefit items
packaged. The overall tax outcome for each employee will vary depending on the employee’s
particular circumstances.
Some benefit items may also attract Goods and Services Tax (GST). Under a salary packaging
arrangement an entitlement to a Goods and Services Input Tax Credit (ITC) may arise. Where
there is an entitlement to an Input Tax Credit (ITC), SS will claim and return the ITC to the
employee. In the case of Novated Motor Vehicle Leases and Laptop Leases, the initial pre-tax
salary deduction is ex-GST, therefore all ITC’s returned from the ATO are held by SS.
Employees of Public Benevolent Institution organisations (PBI’s) do not incur FBT, up to
prescribed limits, on a part of the taxable value of those benefit items that are subject to FBT.
However, taxation rules now require the taxable value of any fringe benefit, as defined in the
Fringe Benefits Tax Assessment Act 1986, be “grossed up” and shown on the employee’s
group certificate (payment summary) at the end of each financial year. This applies equally to
all employees, including those working in PBI’s. Within the ACTPS only certain employees
employed in ACT Health and the ACT Ambulance Service are eligible for PBI exemption.
Salary packaging can provide a range of benefits to both employees and employers, such as:
a) net increases in remuneration for employees;
b) retention of valued employees; and
c) attraction of key employees.
This manual discusses the administrative process and procedures, including the types
of benefit items that can be salary packaged, and the administrative arrangements that
operate under the SS “in-house” arrangements. These arrangements may change from
time to time.
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The Fringe Benefits Tax Assessment Act 1986 and Income Tax Assessment Act 1936 and 1997
regulate the relevant tax payable on such benefits. Any changes to this legislation, or any other
legislation, that impacts on salary packaging will be reflected in the employee’s remuneration
package and will not increase or decrease the total cost to the employer. Should such a change
in legislation occur the employee will be entitled to amend their salary packaging arrangements
in accordance with arrangements set out in this document.
If a higher Fringe Benefits Tax (FBT), or any Territory tax equivalent, becomes payable
on a packaged item, the employee must make payment of the additional FBT amount,
or equivalent, to their employer at the end of the reconciliation period.
Shared Services offers a very streamlined model to ensure the cost of the administration of
salary packaging is contained.
All employees are eligible to participate in salary packaging but generally must seek
independent financial advice from a licensed securities dealer.
A maximum of 100% of remuneration packaging salary can be classified as non-cash items.
NOTE: Independent financial advice is compulsory if the total package exceeds 50%. Up to
50%, the delegate can approve a package in the absence of financial advice, e.g. laptop
computer or other small ticket item. The employee must request a “waiver” to obtain financial
advice.
Not all employees will benefit from salary packaging.
Employees are under no obligation to participate in salary packaging.
1.2
Salary Sacrifice Arrangement
A salary sacrifice arrangement is an arrangement between the employer and the employee
where the employee agrees to forego part of their future entitlement to salary or wages in return
for the employer providing benefits of a similar cost to the employer.
Under a salary packaging arrangement:
• The employee only pays income tax on the reduced salary or wages.
• The employer may be liable to pay Fringe Benefits Tax (FBT) on the fringe benefits provided.
Under the ACTPS Salary Packaging Policy, any employer FBT liability is directly passed
onto the employee.
• Salary sacrificed superannuation contributions are classified as employer superannuation
contributions (not employee contributions) and are taxed in the superannuation fund under
tax laws dealing specifically with this subject. The current superannuation tax is 15% which
replaces the PAYG normally paid on the salary sacrificed.
1.3
•
•
•
Effective salary sacrifice arrangement
An effective salary sacrifice arrangement is an arrangement between the employer and the
employee detailing the amount of salary or wages income to be sacrificed and it must be
entered into before the employee becomes entitled to be paid.
The salary sacrifice arrangement would be entered into prior to the work being performed.
Employees can re-negotiate a salary sacrifice arrangement at any time.
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1.4
What are the salary implications for employees?
1.41 Assessable Income
The employee pays income tax only on the reduced salary and the employee receives a
reduced salary plus non-cash benefits. Employees can also make employee
contributions from their after-tax income towards the cost of providing the benefit (ECM).
1.42 Income for Superannuation Purposes
The employee’s income for superannuation purposes is their gross salary excluding any
deduction for salary sacrifice. Eligible employees will continue to contribute to their
current superannuation scheme.
1.5
Who can participate in Salary Packaging
Salary packaging is only available to eligible employees.
An eligible employee is either:
•
A permanent officer or temporary employee (including a probationary employee) employed
under the Public Sector Management Act 1994 who is covered by a Certified Agreement, an
Australian Workplace Agreement (AWA) or Special Employment Arrangement (SEA) that
contains a clause providing access to salary packaging. A casual employee, may, subject to
the agreement of the relevant Chief Executive (or his or her Delegate), be permitted to salary
package some items from the approved menu. This will extend to salary packaging for
laptop/notebook computers, superannuation and small ticket items. This entitlement would
not apply to novated motor vehicle leases unless the period of the lease coincided with the
duration of the temporary contract. For casual employees to salary sacrifice to
superannuation, a casual superannuation deduction form must be lodged by fax (ext. 76008)
on each occasion their casual timesheet is lodged.
•
An Executive contracted to an agency.
NOTE: Officers who have been declared excess are not eligible for salary packaging.
1.6
Existing Salary Packaging arrangements with ACTPS External Salary
Packaging Providers
•
Staff with an existing salary packaging arrangement in place can transfer to the SS “inhouse” arrangements. This includes arrangements for superannuation, laptop/notebook
computers (primarily for business use e.g. 51%), novated motor vehicle leases and any other
approved salary packaged items.
•
An authority to cease arrangements with the external provider will be provided to staff
wishing to transfer.
1.7
•
To Commence Salary Packaging
Request a Salary Packaging Letter of Offer from the Salary Packaging Team, Shared
Services, telephone 62055444. Alternatively, you can submit a request via the Human
Resources section of the Customer Service Portal (http://sharedservices).
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•
Once received, complete the Salary Packaging Agreement (from the Letter of Offer) and
forward back to the Salary Packaging Team, Shared Services, for processing.
1.71
Motor Vehicle Leases
•
Standard Novated Leases are available from a number of Leasing Companies. These
leases can include fully maintained or lease only payments, however, further information
can be obtained direct from the Leasing Company.
•
A Standard Novated Lease is between the employee and the leasing company. The
employee is responsible for all lease payments during their employment with the ACTPS.
Once the employee leaves the employment of the ACTPS the lease “novates” and the
ex-employee becomes responsible for any future lease payments.
•
For new vehicles you should contact an approved leasing company to ascertain the
provisions of the novated lease and associated finance arrangements. .
•
The majority of leasing companies provide Novated Leases for both new and secondhand vehicles. Second-hand vehicles can generally be sourced from a licenced motor
dealer, auction house or private sale. This includes financing the purchase of own
existing vehicle.
•
As a general rule second hand vehicles must be no older than 7 years at the end of the
proposed lease.
1.72
Superannuation
Consider which fund you would prefer to package your superannuation following advice from
your Financial Adviser. A list of approved Financial Advisers is provided at Annex E. (NOTE:
Fund cannot be CSS or PSS Defined Benefits Schemes)
1.73
Laptop/Notebook Computer (primarily for business use e.g. 51%)
If you wish to purchase a laptop/notebook computer, visit a computer retailer to check on
available models and prices. See Section 2.1 for procedural details.
1.8
Independent Financial Advice
•
Shared Services generally requires that all employees wishing to salary package obtain
financial advice, including specialist advice on packaging options, before making any
decisions.
•
For packages exceeding 50% and up to 100% of salary, independent financial advice is
compulsory.
•
Financial advice is not compulsory for staff wishing to package any small item, such as a
laptop/notebook computer, printer, reimbursement of airport lounge membership
(QANTAS Club), professional association fees, financial advisor fees or other small ticket
items. Staff are required to request a waiver if they do not seek financial advice.
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•
Regardless of which financial adviser is chosen, staff need to be fully conversant with the
items that SS allow to be packaged.
•
The financial adviser will provide a tax invoice for the service rendered which is an
eligible salary packaging FBT exempt item as a reimbursement of the tax component. A
Tax Invoice must be forwarded, along with Salary Packaging Deduction Forms E1 and
E3, to the SS Salary Packaging Unit for processing.
•
Staff are advised to ensure that the financial adviser is a licensed securities dealer. A
list of financial advisers is shown at Annex E.
Note: Obtaining financial advice is an employee cost. This cost can be salary
packaged as an Exempt FBT item.
1.9
Employee Responsibilities in the Administration of a Salary Package
To ensure the viability of the SS “in-house” arrangements, employees are required to take a
pro-active role in the packaging administration themselves. For example, with novated motor
vehicle leases, information on vehicle usage (odometer readings) in relation to FBT liability
must be provided to SS Salary Packaging Team by the nominated date following the end of
each FBT year (31 March) and monitoring of one's accounts on a regular basis. The SS
Salary Packaging Team provides quarterly salary packaging statements for all packaged
items.
2.0 Package Items
Under the SS “in-house” arrangements, the following items are allowable:
•
•
•
•
•
•
•
•
•
•
•
•
•
New Motor Vehicles through Novated Leases.;
Second Hand Motor Vehicles through Novated Leases from a number of leasing companies.
NOTE: Leasing policy varies from company to company;
Laptop/notebook Computers; (primarily for business use e.g. 51%),
Printers suitable for use with laptop/notebook computers (primarily for business use e.g.
51%);
Supplementary Superannuation. (This does not include contributions to the existing
Commonwealth CSS/PSS Defined Benefits Schemes, however, does include the
PSSap scheme (introduced on 1 July 2005);
Work Related Membership Fees for Professional Associations including annual subscriptions
for work related journals, magazines and similar publications items. Eligibility for these items
is assessed on a case-by-case basis.
Airline Lounge Memberships (e.g. Qantas Club);
Palm/Pocket PCs and Electronic Diaries;
Briefcases;
Financial Advice;
Mobile Phones for at least 50% business use;
Income Protection Insurance;
Additional items which attract Full FBT (e.g. home mortgages/Meal Entertainment) are
only available to staff employed in areas with Public Benefit Institution (PBI) status,
e.g. ACT Ambulance Service and ACT Health (eligible employees only).
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Employees can package up to 100% of their pre-tax salary.
Note: Independent Financial Advice is compulsory if packaging beyond 50%.
2.1.
Category A – FBT Exempt Benefits
Notebook/Laptop Computers (primarily for business use e.g. 51%), including
electronic organisers and Palm/Pocket PC’s, Printers, Briefcases, Mobile
Phones (Business Use), Subscriptions to Trade and Professional Journals,
Airport Lounge Memberships
•
These items are not subject to FBT but for which an employee could usually claim a tax
deduction when preparing their annual tax return (e.g. Work Related Expenses).
•
By including FBT exempt items in your package you will save the entire amount of tax
that would otherwise have paid had you received your salary, paid income tax, and then
purchased the item.
•
Each employee is allowed to package one notebook/laptop computer, printer, electronic
organiser or palm/pocket PC per FBT year (FBT Year is 1 April to 31 March) which will
be free of FBT provided it is to be used primarily for business use (e.g. 51%). Desktop
personal computers are not eligible for this concession.
Microsoft’s Home Use Program (HUP) is available to ACT Government employees for
the term of the Microsoft Enterprise Agreement. This agreement allows employees to
order their own copy of approved Microsoft media for installation of applications (such as
Microsoft Office) on their laptop computer. Further information on the Microsoft Home
Use Program is available in Shared Services ICT’s Microsoft Home Use Program fact
sheet http://sharedservices/ACTgovt/ICTfactsheets.asp.
•
GST payable on these purchases is refunded through an Input Tax Credit (ITC).
2.1.1 Purchase/Lease Options
Option 1 - Reimbursement
•
Employee purchases laptop/notebook
arrangements.
•
The refund of the PAYG tax as a result of the reduced salary due to the packaging of the
item will be reimbursed. In the case of finance leases, the interest payable and any
administration fees are also reimbursed, i.e. the total package cost.
•
In order to receive the reimbursement employees must submit the original of the tax invoice
or receipt showing the cost of the computer. NOTE: Desktop computers are not eligible for
FBT exemption.
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•
(Annex B1), must be included.
•
The bank account name, number and Bank, BSB number and where the reimbursement is
to be deposited are also required.
•
The SS reimbursement will generally be made over a number of pays ranging from one up to
five (5) pays. The reimbursement will be made to the employee’s normal main pay bank
account if purchased outright.
•
GST on purchase is reimbursed.
Option 3 – Finance Lease - EquiGroup
•
Laptop Computers are available to be packaged through a lease arrangement with
Equismart. Payments are salary packaged on a fortnightly basis over a 12 or 24 month
period.
•
When commencing a lease, a Computer Hire Agreement between the employee and
employer will need to be signed as well as an Order Form prior to any equipment being
finalised.
•
Leased laptops may only be purchased from the following suppliers:
•
Capital Laptops: Contact – Christian Rios Ph: 6257 0177
•
MAC1: Contact – Ken Hogg Ph: 6257 0808
•
During the term of the lease, the employee is responsible for all payments. Should
employees wish to terminate their contract early, or leave employment with the ACTPS,
they will be liable to pay out the remaining usage term. This is also the case if the
laptop/notebook is stolen or damaged.
•
At the end of the lease term, the laptop or notebook may be purchased outright for a small
fee ($1.00).
•
For more information please contact the Shared Services Salary Packaging team on 6205
5544 or at [email protected]
Please note that if leasing a laptop, you may request that the payments be deducted from your
post tax salary. In this instance there is no requirement that the equipment is primarily for
business use.
2.1.2 Mobile Phones
Mobile phones are a work-related item if they are primarily used for business use. This means
that business use must be at least 50%. The benefit must involve the provision of a mobile
phone.
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2.1.3 Briefcases, calculator, electronic diary
These items are work-related and as such, are FBT exempt when salary packaged.
2.1.4 Subscriptions to Trade and Professional Journals, Airport Lounge Memberships
Any of these items are FBT exempt.
2.2
Category B - Concessionally Taxed Benefits
Certain items of expenditure are concessionally taxed for FBT purposes in respect of which an
employee would not usually obtain a tax deduction.
Accordingly, they potentially offer tax savings to cover the type of benefit items more commonly
included in a remuneration package of an employee whose employer is subject to FBT.
2.2.1
Superannuation
•
Employees may contribute to a private superannuation fund as part of their remuneration
packaging arrangements.
•
Superannuation is suitable for packaging as no FBT is payable regardless of the employer's
FBT status though it is required to be reportable (Reportable Fringe Benefit Amount) on an
employee’s Payment Summary at the conclusion of each financial year
•
Additional contributions must be made to a complying personal private superannuation fund
that complies with the Superannuation Industry (Supervision) Act and Regulations.
•
Additional superannuation contributions paid to a private fund via salary packaging are
considered to be an employer contribution. Employees will only be able to direct funds to
certain self-managed funds (SMF) as prescribed by ATO regulations.
•
All contributions will be subject to a 15% contributions tax.
•
Financial institutions, insurance companies, Australian banks and fund managers offer a
variety of complying superannuation funds.
•
The SS Salary Packaging Deduction Authority (Annex B2) must be provided to the Salary
Packaging Team, SS, along with your funds details (i.e. account number, account type, bank
BSB number, account name) and the amount you are salary sacrificing before the deduction
will be commenced.
•
Funds must be deposited into a superannuation account in the employee’s own name.
Contributions to spouses/partners accounts attract full FBT. Further advice can be obtained
from your financial advisor.
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•
Casual employees may salary sacrifice into superannuation which requires the completion of
a casual salary sacrifice deduction authority form each fortnight (Annex B). Further
information is available from the Salary Packaging Team, Shared Services.
•
Due to restrictions and capped limits on concessional contributions, effective from 1/7/09, it
is advised that you seek financial advice prior to commencing salary packaging to your fund.
Please see Annex D for the list of supported funds under the SS arrangements. Additional funds
can also be approved. The SS arrangements can be directed to an approved fund.
Please note this superannuation is not in lieu of your existing PSS or CSS Defined
Benefits superannuation schemes, PSSap or First State Super post-tax superannuation
contributions. These remain compulsory contributions. Salary sacrifice can be made into
PSSap and First State Super schemes.
2.2.2 - Motor Vehicles
Definition of a Vehicle for FBT purposes.
For FBT purposes vehicles designed to carry passengers (less than 9) and have a carrying
capacity of less than 1 tonne are eligible. Whilst a number of utilities and light vehicles do fit this
category, a number do not. Employees should check the ATO website at www.ato.gov.au for
details.
Luxury Vehicles
Vehicles above the luxury car limit can generally be packaged though an additional tax (luxury
tax) is applied. Although the limit varies on an annual basis, the value as at July 09 is
$57,180.00.
Note: Employees wishing to package a vehicle in excess of the limit should contact the
relevant leasing company.
Novated Lease
•
Employees can choose from any approved leasing company.
•
Where an employee decides to include a motor vehicle as part of their flexible remuneration
package, the employee will need to be familiar with the use of a novated lease for this
purpose.
•
Under a novated lease arrangement if an employee’s employment is terminated the
employee has the obligation to pay future lease payments and/or payment of the residual
value and retains the use of the vehicle as lessee.
•
Under a novated lease, the SS (or participating ACTPS agency) does not have the cost
liability of holding a lease vehicle after an employee ceases employment.
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•
If the employee leaves the ACTPS, in some cases it is possible to transfer the lease to
Australian Public Service (APS) agencies, subject to approval from the leasing company and
the new agency.
Tax Ruling on Novated Leases
•
Under Tax Ruling TR 1999/15, the Tax Commissioner has indicated that only "Fully
Novated" leases will be exempt from income tax. The ruling defines Full Novation as follows
“Full Novation occurs where the novation agreement has the effect of transferring the
rights and obligations of the lessee under the lease from the employee to the employer
and the original agreements, being a finance lease and/or a sublease, are rescinded. A
full novation may also be effective where it includes an agreement to enter into a further
novation on termination or expiry of the novated lease."
If a full novation exists and an employee leaves their employment, all future financial
obligations of the motor vehicle revert to the employee and the employee is then
responsible for all the obligations under the lease including all payments. Employees
should be aware that payment of the residual value under the finance lease arrangement
is the responsibility and liability of the employee.
Once you package the vehicle, you cannot claim the business expenses associated with
the vehicle as a tax deduction.
Fringe Benefits on Motor Vehicles
•
A car fringe benefit generally arises when a car, which is owned or leased by an employer, is
made available for the private use of an employee. If the employer's car is garaged at an
employee's house, it is regarded as having been made available for private use.
•
Motor vehicles can only be provided through a Novated Lease. Under the basis of statutory
formula basis, all running and maintenance costs can be included in the package cost for the
motor vehicle(s) tax-free.
•
Running costs include:
•
Petrol, oil and auto club membership, vehicle repairs, tyres and service costs,
comprehensive insurance, registration and third party insurance.
•
The costs associated with a novated lease are largely influenced by the amount of
kilometres travelled each FBT year (FBT Year is 1 April to 31 March). The kilometres
travelled are used to determine the statutory fraction.
The calculation is as follows:
Less than 14,999 km
15,000 to 24,999 km
25,000 to 39,999 km
Over 40,000 kms
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The novated lease arrangement includes provision for running expenses. Running
expenses do not include payments for infringement notices, road tolls and similar items.
Only items as defined in the FBT Act are legitimate expenses within a novated lease.
Please refer to the ATO website at www.ato.gov.au for additional information. Please
note that from an administrative aspect, packaging a vehicle as a temporary employee is
not practical.
The formula for calculating the FBT benefit value is:
where:
AxBxC
------------- - E
D
A is the "base value" of the car ($25000);
B is the "statutory fraction" (for example, 0.20 if 23,000 km are travelled);
C is the number of days during the year on which a car fringe benefit was provided in relation to
the car (365);
D is the number of days during the year (365); and
E is the amount of any "recipient's payment" (ECM) = (0).
Taxable value of benefit: $25,000 x.20 x 365 - 0 = $5,000 Taxable Value
365
$5,000 x 2.0647 grossed up taxable value to SS or agency = $10,324
Tax at 46.5% = Fringe Benefits Tax (FBT) of $4801.
The FBT liability is paid from pre-tax salary. It can also be fully or partially reduced by Employee
Contributions (ECM) from post-tax salary.
The reportable fringe benefit will appear on the payment summary at the end of the Financial
Year.
Motor Vehicle Running Costs
For motor vehicle leases under a ‘lease or finance only’ arrangement, a Motorpass fuel card is
provided. This card can be used for purchases of fuel and oil and workshop repairs. The
Motorpass account is paid from “pre-tax” salary. This card can be used at most Service Stations
and repairers. A small monthly Motorpass administration fee is payable from pre-tax salary.
2.3
Reportable Fringe Benefits
If the total taxable value of certain fringe benefits received by an employee in an FBT year (1
April to 31 March) exceeds $2000, the grossed-up taxable value of those benefits will be
recorded on the employee’s payment summary (group certificate) for the corresponding income
year (1 July to 30 June). Grossing up reflects the gross salary that would have to be earned to
purchase the benefit from after tax dollars. This is calculated at the highest marginal tax rate,
including the Medicare levy.
The value of fringe benefits reported on the payment summary is known as Reportable Fringe
Benefits.
The ATO advises that the Reportable Fringe Benefits will not be included in the employee’s
assessable (or taxable) income or affect the amount of basic Medicare levy payable.
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The total will, however, be used to calculate the following:
• Medicare levy surcharge
• Deduction for personal superannuation contributions
• Tax offset for personal superannuation contributions
• Tax offset for contributions to spouse’s superannuation
• Superannuation contributions and termination payments surcharge
•
•
•
2.4
Higher Education Contributions Scheme (HECS) repayments
Child Support obligations
Entitlement to certain income tested government benefits
Fringe Benefits Tax
•
A typical remuneration package for employees is gross salary, which PAYG tax is payable.
•
Fringe benefits tax makes it possible for employers to legitimately pay benefits on behalf of
employees. The employer pays FBT tax rather than the employee paying PAYG. Because
salary packaging is to be at no cost to the ACT Government, SS, or any ACTPS agency
participating in the SS “in-house” arrangements, employees are required to pay for their FBT
liability from their gross salary. The FBT withheld from pre-tax salary is held by the SS until
paid to the ATO. The amount of FBT payable by individual employees is reconciled at the
end of each FBT year. (31 March). Each FBT year is independent of each other.
•
Salary packaging ensures the most efficient combination of benefits and salary. When
considering benefits to package the pre-tax cost of the benefits is determined. Pre-tax cost
of a benefit is how much gross salary is required to pay for the benefit with take home pay
after allowing for PAYG tax.
•
The gross salary required to pay for a benefit with take home pay is determined by grossing
up the net cost of the benefit (or post-tax cost) at the employee's marginal tax rate.
•
Pre-tax cost of a benefit = Post tax cost of a benefit
(1 - marginal tax rate)
Note: FBT is only paid from commencement date of the novated lease, i.e. pro-rata (daily
basis) for the first FBT year.
• Any additional FBT liability incurred each FBT year as a result of insufficient FBT “pre-tax”
salary deductions or under-estimated nominated annual kilometres will be paid by the SS
and recovered from the employee’s future “pre-tax” salary as negotiated with the employee.
2.5
Input Tax Credits and the GST
•
A number of benefits that are commonly packaged will be subject to GST however the SS
will be entitled to claim Input Credits thus negating the GST.
•
To ensure that employees are not avoiding GST in this way, the government has introduced
a second (higher) gross up rate to calculate the FBT. The effect of the higher gross up rate is
to increase the FBT to cover the Inputs Tax credits that the employer claimed.
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•
Where the underlying benefit is subject to FBT the employer will be entitled to an Input Tax
Credit regardless of whether or not the employer actually claims the Input Tax Credits. The
entitlement means that the benefit must be grossed up at 2.0647 rather than the lower
grossed up rate.
•
Where Input Tax Credits are able to be claimed, SS will claim the credits and pass them
back to the Salary Packaging Account and then will credit the individual employee salary
packaging accounts where appropriate. In the case of novated motor leases, the fortnightly
salary deduction is net of GST. In this situation, the GST claimed by the SS will be retained.
3.0 Administration Fees
•
The SS charges an administration fee for this salary packaging model on a cost recovery
basis. This decision is based on the condition that the “in-house” salary packaging model
must be at no cost to the ACT Government, SS or participating Agencies.
•
Fees are not payable in advance and are only payable for the duration of the package.
Note: All fees are ex-GST and included in salary package as a “pre-tax” cost.
Laptop/Notebook Computers
•
•
For reimbursement of costs over one pay a “one-off” fee of $25.00 (pre-tax) is
payable
For reimbursement of costs and lease processing there is a “one-off” fee of
$50.00 (pre-tax) for reimbursements beyond 1 pay period.
Pocket PCs and Electronic Diaries and other Small Items
•
For reimbursement of costs there is a “one-off” fee of $25.00 (pre-tax).
Superannuation (Electronic Funds Transfer - EFT)
•
Fees are $5.00 (pre-tax) per fortnight ($130.00 per annum).
Superannuation (Cheque Processing)
•
Fees are $7.00 (pre-tax) per fortnight ($182.00 per annum).
Novated Motor Vehicle Leases
• Fees are $10.00 (pre-tax) per fortnight ($260.00 per annum). This fee covers
management of all lease and associated payments, including FBT collection,
management and reporting to staff and ACTPS Agencies.
Multiple Benefits
• A maximum fee of $10.00 (pre-tax) per fortnight ($260.00 per annum) applies.
4.0 Payments
•
The SS will process payments by Electronic Funds Transfer (EFT) in the majority of cases.
•
Cheque payment facilities are available for accounts where EFT facilities are not available.
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5.0 Changing or Terminating the Package
•
Employees can decide to terminate or amend (re-negotiate) their packaging arrangements at
any time without any additional fees other than those associated with the administration of
the package.
•
There is no restriction on the number of variations to contribution rates with superannuation
packaging.
•
Employees who decide to terminate their motor vehicle package should be aware of all of
the implications when they terminate their novated lease earlier than the agreed lease
period. These details are defined in the novated lease document.
•
When terminating a motor vehicle lease adequate notice is required to ensure effective
management of the process.
•
Where a motor vehicle lease is involved, if an employee has overspent on their package, the
employee will be informed and will need to make arrangements with the SS Salary
Packaging Team to repay the funds. This information will be obtained from the leasing
company.
•
If an employee has spent less than the budgeted amount, the difference will be included in
calculating any termination pay the employee is entitled to and the appropriate tax will be
deducted.
•
SS must receive a signed original FBT Declaration from the employee to enable the package
to be finalised where a motor vehicle is involved.
•
The final monies payment to the employee cannot be made until the package has been
reconciled and all necessary documentation is received and actioned.
6.0 The full information is contained in the Novation Deed. Leave Without Pay (LWOP) or
7.0
8.0 6.0 Leave without Pay or Long Service Leave (LSL)/Annual Leave at Half-Pay
•
Employees will need to ensure there are adequate funds in their package balance to sustain
any period of LWOP or LSL/Annual leave at half-pay.
• If the salary packaging funds from their salary deduction are insufficient, the employee will
need to make other arrangements such as terminating the lease or postponing finance
repayments (in the case of laptop/notebook computers) and suspending superannuation
contributions.
• Employees who have a salary packaging arrangement in place and are terminating their
employment with the ACTPS, must contact Shared Services salary packaging. Any
outstanding costs i.e. FBT arrears will be recovered from the employee prior to their
cessation or from final monies payments.
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7.0 Superannuation
•
A policy statement or schedule; superannuation member or renewal advice or a letter from
the fund trustees of the fund showing the amount per period, frequency of payments and due
dates is required for packaging superannuation.
•
The name of the bank and name of the account holder, account number & Bank BSB
number where the payments are to be deposited will also be required.
•
A policy, member or reference number is also required in all cases.
Note: You cannot package super to third party names to qualify for FBT exemption. Full
FBT applies if spouse or third party names are used.
7.1
Super Surcharge
• Superannuation surcharge is no longer payable.
8.0 Statements
•
Salary Packaging Statements are provided by the SS Salary Packaging Team at the end of
each quarter (June, September and December) and with an annual statement in April each
year for all items.
9.0 FBT Declarations – Novated Motor Vehicle Leases
•
Each FBT Year ending 31 March, employees are required to satisfy the substantiation rules,
which include the completion of the Odometer Declaration, if they are packaging a vehicle.
•
Declarations will be sent from the SS Salary Packaging Team during March each year and
require completion and signature as at 31 March. They are to be returned by mail to SS
Salary Packaging Team no later than 8 April each year.
•
A copy of an FBT Declaration is shown at Annex C.
10.0 Contact with Salary Packaging Team
Phone: (02) 62055444 or internal extension 99
Fax:
(02) 62076008 Attention: Salary Packaging.
Email: [email protected]
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Annex A
Letter of Offer
(SS Letterhead)
[Insert: Employee’s Name and Address]
Dear ,
Offer of Salary Packaging
I would like to offer you the option to undertake Salary Packaging on the terms and conditions set out
in the attached Agreement and in accordance with the ACT Public Service Salary Packaging Policy
and Procedures (“the Policy”).
Please read the Agreement carefully. If you then decide to proceed, you must obtain financial advice
before you can formally commence salary packaging, unless it is agreed that you may proceed
without obtaining financial advice.
If you agree to accept the terms of the Agreement, please sign and date the Agreement on page 6
and return it to Shared Services Salary Packaging Unit, ACT Treasury Directorate, GPO Box 158,
Canberra City ACT 2601 and hand a copy of the Agreement to your financial adviser. The financial
adviser will fill out the relevant “E” forms and 'sign off', after which the financial adviser will forward the
signed documents to the Salary Packaging Unit.
If you have any queries about the administration of your salary package, please contact the Shared
Services Salary Packaging Unit. Contact details are listed on the attached Schedule 2.
Set out below are your current salary, the maximum percentage of your salary you are allowed to
salary sacrifice, and the minimum “cash” salary you must take.
Employee Name:
AGS Number:
Agency Name:
Telephone:
Classification:
(Please circle)
Current Salary:
$
Fax:
Executive
Maximum percentage allowed
to be Salary Packaged:
100%
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Non-Executive
Minimum which must be taken
as “Cash” Salary:
$50 per fortnight
Issued: 6 August 2012
Page 20 of 38
Salary Packaging Agreement
This Agreement is Between:
AUSTRALIAN CAPITAL TERRITORY a body politic established under the Australian Capital Territory
(Self-Government) Act 1988 (“the Territory”) represented by Shared Services (“the employer”)
And: ……………………………… (“the employee”).
The parties agree as follows:
A.
Employee Salary
i)
For the purposes of salary packaging, salary is defined as the employee’s gross pre-tax salary at
the date of the commencement of package excluding overtime, higher duties or other allowances
or entitlements, unless these have been converted to an annualised salary.
ii)
The employee may elect to “package” up to 100% of their available gross salary, or in the case of
employees working in Public Benevolent Institutions, a maximum of 75% of an employee’s gross
pre-tax salary, provided that the benefit items which normally incur Fringe Benefits Tax (“FBT”) do
not incur more than $17,000 grossed up taxable value per “FBT year”, unless the responsible Chief
Executive (or his or her delegate) gives prior written permission for the named employee’s
entitlements to exceed $17,000 grossed up taxable value in any “FBT year”.
iii)
The employer will pay the remainder of the employee's salary as “cash” salary fortnightly.
iv)
The employee may elect to include one or more of the package items listed on the attached
Schedule 1 in their salary package, provided the total value of the items to be packaged does not
exceed the amount calculated in accordance with point (ii) above.
v)
The employee’s participation in salary packaging will be at no cost to the employer.
vi)
The employee must pay FBT or reimburse the employer the amount of any liability for any tax,
charges, duty or other payments (including salary packaging administration fees) payable by the
employer which arise out of, or are in any way connected with, this Agreement. This includes any
tax, charges, duty or other payment which becomes payable as the result of the amendment,
introduction or coming into effect of any legislation. If any liability amount remains unpaid after
fourteen (14) days of the employee being notified of the amount the employer may deduct the total
amount from the next available payment of salary or by any other agreeable arrangement.
B.
Duration of the Agreement
i)
This Agreement will commence on the first available pay period after the date it is signed and after
the processing of the necessary documentation by both parties.
ii)
The Agreement will remain in force on an ongoing basis providing the employee remains an
“eligible employee”, unless either party notifies the other in writing of their decision to withdraw
from the agreement.
C.
Financial Advice
i)
The employee must obtain and provide evidence of financial advice about the structure of their
proposed salary package before they can participate in salary packaging, unless the Chief
Executive (or his or her delegate) agrees that the employee may proceed without obtaining
financial advice. This advice must be obtained from a suitably qualified and independent financial
adviser accredited by a recognized professional association (such as the Financial Planning
Association). Requests for “Waiver of Obtaining Financial Advice” should be made to the
appropriate delegate for your directorate.
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ii)
I also acknowledge that I must advise the Salary Packaging Unit of any variation to my pay
(e.g. leave without pay, industrial action, change in other deductions, etc), particularly if I am salary
packaging 100% of my pay. Failure to do so will result in my salary packaging arrangements being
ceased immediately and not recommenced until I have requested this in writing through the Salary
Packaging Unit and recovery of overpaid monies has taken place.
iii)
The employee must direct any queries about salary packaging and associated issues such as
superannuation, compensation, taxation and administration to an accredited financial adviser or
the Salary Packaging team, Shared Services.
D.
Review of the Salary Package
i)
An employee may review the components of his or her salary package and vary their package
items at any time. If an employee decides to vary his or her salary package it is recommended,
before doing so, that the employee seek advice from a qualified and independent financial adviser.
ii)
The employee is entitled to have the components of his or her salary package reviewed if the
employer’s FBT status changes.
E.
Administration
i)
Shared Services has been appointed by the Territory to administer salary packaging arrangements
in consultation with the employer. The Shared Services Salary Packaging Unit is the approved
Salary Packaging Administration Provider (“the provider”) to provide these services to eligible
employees.
ii)
If the employee decides to proceed, the Shared Services Salary Packaging Unit will charge an
agreed fee for administering selected package payments made under this Agreement. The level of
fees depends on the type and number of items packaged.
iii)
The employer will hold employee salary packaged monies in a salary packaging specific bank
account (“the Account”) established with the Territory’s nominated Bank. The employee
acknowledges that from the time at which salary packaged monies are paid into the Account, all
disbursements/drawdowns (or the omission of disbursements/drawdowns) from the Account are
the responsibility of Shared Services. The employee forever releases the Territory from any
responsibility relating to disbursements/drawdowns (or the omission of disbursements/drawdowns)
from the Account.
iv)
The employee must ensure that sufficient funds are available (in the Account) to enable all
commitments, including FBT liability, to be met.
v)
The Shared Services Salary Packaging Unit, as Salary Packaging Administration Provider, will
provide a reconciliation of FBT owed by the employee (to both the employee and employer) at the
end of the “FBT year” (the 12-month period ending 31 March) when any outstanding FBT must be
paid in full by the employee.
vi)
This Agreement and associated publications, has been prepared without consideration of the
particular investment objectives, financial situation and needs of recipients. In all cases, recipients
should conduct their own investigation and analysis of the information contained in this publication.
No recipient should act on the basis of any matter contained in this publication without considering
and, if necessary, taking appropriate legal, financial or other professional advice upon the
recipient’s own particular circumstances. Each employee who wishes to take advantage of salary
packaging is required to obtain financial advice, unless the Chief Executive (or his or her delegate)
agrees that the employee may proceed without obtaining financial advice.
F.
Disclaimer
i)
This Agreement and associated publications, has been prepared without consideration of the
particular investment objectives, financial situation and needs of recipients. In all cases, recipients
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should conduct their own investigation and analysis of the information contained in this publication.
No recipient should act on the basis of any matter contained in this publication without considering
and, if necessary, taking appropriate legal, financial or other professional advice upon the
recipient’s own particular circumstances. Each employee who wishes to take advantage of salary
packaging is required to obtain financial advice, unless the Chief Executive (or his or her delegate)
agrees that the employee may proceed without obtaining financial advice.
ii)
The actions of the employer, and Shared Services as the salary packaging administration provider,
in making payments to a third party for employment benefits in accordance with an employee’s
salary package do not in any way imply a transfer of liability to the Territory, or the provider, in
relation to any agreement, understanding or obligation between the employee and the third party.
iii)
The Australian Capital Territory Public Service (“ACTPS”), each of its employees and every person
involved in the preparation of this publication expressly disclaims all liability for any loss or damage
of whatsoever kind (whether foreseeable or not) which may arise from any person acting or relying
on any statements contained in this publication, and notwithstanding any negligence, default or
lack of care.
iv)
The disclaimer does not limit or alter those statutory rights, which cannot be excluded.
G.
Confidentiality and Acknowledgment
i)
The terms of this Agreement remain confidential between the employee and the employer.
ii)
The terms and conditions agreed between the employee and the employer relate only to the
employee’s salary package.
iii)
The employer is not liable for taxation or any other liabilities, judgments, penalties or outcomes
suffered or incurred by the employee resulting from entering into this Agreement.
iv)
The employee confirms that the package items selected for their salary package are legitimate
expense items and that funds availed of by the employee under the salary packaging
arrangements will only be used to pay these expenses.
v)
The employee confirms that Australian and Territory Government provided benefits (such as social
security payments) will not be accessed by the employee, where entitlement to access these
benefits has accrued solely through the reduction in gross salary by the use of salary packaging.
In addition, employees shall not use salary packaging to reduce gross salary in an attempt to
reduce child support or other legally binding payments.
vi)
If the employee ceases employment with the employer, this Agreement will lapse and any
outstanding FBT liabilities will be payable on termination. The employee also undertakes to advise
the Salary Packaging Unit immediately if they leave employment with the employer.
vii)
If the employee transfers to another Territory Agency, the employee must notify the Salary
Packaging Unit of their changed status.
viii)
If an employee defaults on the payment of a lease under salary packaging arrangements, leaves
the employment of the employer, or receives written notification from the employer that the
Territory wishes to withdraw from its obligations under the lease, the lease reverts to the employee
along with any associated costs at no liability to the Territory.
ix)
The employee is under no obligation to participate in salary packaging. The employee may elect to
cease salary packaging at any time.
x)
This Agreement is in substitution for all previous salary packaging Agreements between the
Territory and the employee.
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H.
Indemnity
i)
In consideration of the Territory agreeing to enable the employee to undertake salary packaging
arrangements, the employee indemnifies the Territory against any liability, loss or other claim
which Shared Services, Rhodium Asset Solutions, the Australian Taxation Office or any other
person (collectively referred to as “third parties”) may make against the Territory with respect to
any liability arising from the employee’s salary packaging arrangements.
ii)
The amounts of all claims, damage, costs and expenses which may be paid suffered or incurred by
the Territory in respect of the employee’s salary packaging arrangements, will be made good at the
employee’s expense and may be deducted from any salary payable by the Territory to the
employee or other moneys due or becoming due to the employee.
I, …………...., understand and accept the offer of salary packaging by the employer on the terms and
conditions detailed in this Agreement.
Signature:
..........................
Date:
..........................
Signed for and on behalf of the
AUSTRALIAN CAPITAL TERRITORY
by
Print Name
)
)
)
)
)
………………………………………………….
Signature of Territory Delegate
Date: ………………….
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Schedule 1
(A)
Menu items available for Salary Packaging
The Commissioner for Public Administration has agreed the following items may be included in
salary packaging arrangements for ACT Public Service employees. It should be noted that the
Commissioner without prior notice might amend this list from time to time:
Category A
- Otherwise Deductible Items (i.e. benefits that would otherwise be tax deductible)
• Disability/Income protection insurance premiums;
• Financial counseling fees;
• Home office expenses (such as electricity, telephone, professional library, etc.);
• Interest payments on an Investment loan - Refer to paragraph A3.3;
• Membership fees and subscriptions to professional associations (i.e. AIM, AMA, unions, etc.);
• Mobile phones for predominantly business use;
• Self education expenses related to the employee’s current employment activities;
• Work-related travel expenses (not including travel to and from work).
Category B
- Concessionally Taxed and Exempt Items
Exempt items (i.e. benefits that are exempt from FBT)
• Child care fees - ‘in house’ (i.e. employer provided, if available);
• Laptop computers for predominantly business use (i.e. notebook).
Concessionally taxed items (i.e. benefits where the full value of the benefit is not subject to FBT)
• Contributions to a private superannuation fund (contributions made by the employer are exempt
from FBT and income tax, but are subject to a contributions tax) - Refer to paragraph A1.1 - A1.3;
• Luxury motor vehicle (for private use) by way of a fully novated lease (subject to a bureau service
provider being able to administer the process) - Refer to paragraphs A2.1 – A2.5;
• Motor vehicle (for private use) through a fully novated lease - Refer to paragraphs A2.1 – A2.5;
• Motor vehicles other than cars (for private use) by way of a fully novated lease;
• Replacement vehicle - where an Executive chooses to 'cash-out' the employer-provided motor
vehicle the replacement vehicle may be taken as a novated lease through salary packaging;
• Upgrade of an Executive’s employer-provided motor vehicle - where the Chief Executive agrees
to allow payments covering the difference between the lease payments to be made from the
Executive’s pre-tax salary through approved salary packaging arrangements.
Category C
- Full FBT Items (i.e. benefits subject to the full rate of FBT)
• Aged and Disability care payments;
• Child care fees - ‘off site’ arrangements;
• Insurance premiums, other than income protection (e.g. trauma/life, motor vehicle, home/contents);
• Investment loan (e.g. real estate property for non-commercial purposes) - Refer to paragraph A3.2;
• Own home mortgage (or private home rental) payments;
• Own motor vehicle operating expenses under a novated lease (e.g. repairs and maintenance, vehicle
finance/loan payments, registration, insurance, conversions to enable the use of non-fossil fuels)
- Refer to paragraph A2.4;
• Personal investments through a registered managed trust or fund - Refer to paragraph A3.1;
• Private health insurance premiums;
• Private travel (e.g. personal holidays, home to work travel, car parking, bus fares, other modes of
transport);
• School and higher education fees (including HECS);
• Utilities charges (e.g. gas, electricity, telephone, water, rates, etc.).
Note: The above categories are in accordance with taxation rules at the date of publication.
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Schedule 2
Approved Service Provider
Shared Services
ACT Treasury Directorate
GPO Box 158
Canberra City ACT 2601
Or
Level 6, Eclipse House
197 London Circuit
Canberra City ACT 2600
Contact:
Salary Packaging Team
Telephone:
(02) 6205 5444
Facsimile:
(02) 6207 6008
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Annex B
E-1
SHARED SERVICES
SALARY PACKAGING - EMPLOYEE PAYMENT CLAIM FORM/DEDUCTION AUTHORITY
Circle one of the following:
NEW
AMEND
STOP
Employee Name:___________________________________________ AGS Number:______________
Employer : __________________________________________ Payment Start Date: ______________
Select one of the Approved Benefit Types (please circle)
402 Notebook(Laptop Computer)*
403 Electronic Diary*
404 Briefcase*
406 Airport Lounge Membership
410 Financial Advice
411 Newspapers & Periodicals*
Other (please specify): __________________________________________________________________
*A Business Declaration must be completed for these benefit items to confirm they will be used for predominantly work purposes
Total Cost of Item $_______________
(invoice and all relevant documentation MUST be
attached, including loan documentation if applicable)
Select one of the following (please circle):
•
•
$25 one-off fee for reimbursements spanning 1 pay only
$50 one-off fee for reimbursements spanning 2 or more pays
Payment by Electronic Funds Transfer:
Bank BSB Number (Must be 6 Digits)
Bank Account Number (Up to 9 Digits)
Account in the Name of
_____________________________________________
Employee Signature: ________________________________
Date: _________________
Deliver together with confirmation documentation to:
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, ACT Treasury Directorate , GPO Box 158,
CANBERRA CITY ACT 2601 or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
PAYROLL USE ONLY:
Payday:______________
Payday:______________
Payday:______________
Amount: $______________
Amount: $______________
Amount: $______________
Chris21 updated (date):_____________
Prepared:____________
Checked:____________
Salpack updated (date):_____________
Prepared:____________
Checked:____________
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E-2
SHARED SERVICES
SUPERANNUATION SALARY PACKAGING DEDUCTION AUTHORITY
Circle one of the following:
NEW
AMEND
STOP
Employee Name:_________________________________________ AGS Number:_____________
Employer : ____________________________________________Payment Start Date: _____________
Fortnightly Superannuation Contribution (excl. fee) $______________ OR ______________% of gross salary
•
•
$10 admin fee per fortnight for cheque payments
$5 admin fee per fortnight for EFT payments
Superannuation Fund Name: __________________________________________
Account Number/Client Code: __________________________________________
Please complete if your Super Fund accepts payment via Electronic Funds Transfer:
Bank BSB Number (Must be 6 Digits)
Bank Account Number (Up to 9 Digits)
Account in the Name of
_____________________________________________
Please complete if your Super Fund accepts payment via Cheque:
Make Cheque Payable to : ____________________________________________
Mail Cheque To Name:
____________________________________________
Address:
____________________________________________
Suburb
_____________________ Post Code: _____________
Employee Signature:________________________________
Date:_________________
Deliver together with confirmation documentation to :
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, ACT Treasury Directorate, GPO Box
158, CANBERRA CITY ACT 2601 or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
PAYROLL USE ONLY:
Payday:______________
Payday:______________
Payday:______________
Amount: $______________
Amount: $______________
Amount: $______________
Chris21 updated (date):_____________
Prepared:____________
Checked:____________
Salpack updated (date):_____________
Prepared:____________
Checked:____________
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 28 of 38
SHARED SERVICES (SS)
SALARY PACKAGING - EMPLOYEE MAINTENANCE FORM
E–3
Employee Name: _____________________________________ AGS Number: ______________
Address: ________________________________________________________________________
Suburb: _______________________________
Date of Birth:
Post Code:
______________________
___________________
Work Phone Number: ___________________
Work Fax Number: ______________________
Home Phone Number: ___________________
Home Fax Number ______________________
Mobile Phone Number:___________________
Email Address:
Work Location:
______________________
_____________________________________________________________
Employer (please circle):
CMCD
ED
JCSD
ESDD
CSD
HD
TD
ETD
TMSD
SS
Other (please specify):______________________
PLEASE NOTE:
• Payment frequency will be fortnightly
• Quarterly statements will be sent to the address specified above
• When packaging more than one item, only the highest continuing fee will apply
Employee Signature :________________________________
Date: ______________
Deliver together with confirmation documentation to :
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, Treasury Directorate, GPO Box 158,
CANBERRA CITY ACT 2601 Or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
.
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 29 of 38
E–4
SHARED SERVICES
REIMBURSEMENT CLAIM FORM
Employee Name:_____________________________________ AGS Number:______________
Employer: _____________________________________________________________________
Please make the following reimbursement(s) from my salary packaging account:
Benefit: ________________________________________________________________________
Amount to be reimbursed: $______________________
Payment due date: _____________________________
PLEASE NOTE:
•
•
Original tax invoice(s) MUST be attached to this claim form
Reimbursements will be made via Electronic Funds Transfer (EFT) to your nominated bank
account. If you have changed these details, please provide the new details below:
Bank BSB Number (Must be 6 Digits)
Bank Account Number (Up to 9 Digits)
Account in the Name of
_____________________________________________
Employee Signature :________________________________
Date: ______________
Deliver together with confirmation documentation to :
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, ACT Treasury Directorate, GPO Box
158, CANBERRA CITY ACT 2601 or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
PAYROLL USE ONLY:
Payday:______________
Payday:______________
Payday:______________
Amount: $______________
Amount: $______________
Amount: $______________
Salpack updated (date):_____________
Shared Services Salary Packaging Manual
Prepared:____________
Version 4.2
Issued: 6 August 2012
Checked:____________
Page 30 of 38
E-5
SHARED SERVICES
SALARY PACKAGING – PBI ITEMS ONLY
Circle one of the following:
NEW
AMEND
STOP
Employee Name:_____________________________________________ AGS Number:____________
Payment Start Date: ______________________________Optional End Date : ___________________
Select one of the Approved PBI Benefit Types (please circle)
601 Own Home Mortgage
602 Private Home Rental
603 HECS/School Fees
604 Investments Schemes
605 Personal Loan Repayments
606 Club/Asso. Memberships
607 Child Care Fees
608 Utilities Charges
609 Life Insurance
610 Private Health Insurance
611 House & Contents Insurance
Other (please specify):
___________________________________________________________________
Annual Cost of Item $________________ (invoice and all relevant documentation MUST be
attached,
OR
including loan documentation if applicable)
F/nightly Cost of Item $_______________
Reference Number(s) :_______________________________________________________________
NB: The above figure is exclusive of the $10 admin fee per fortnight
Payment by Electronic Funds Transfer:
Bank BSB Number (Must be 6 Digits)
Bank Account Number (Up to 9 Digits)
Account in the Name of
_____________________________________________
Employee Signature: ________________________________
Date: _________________
Deliver together with confirmation documentation to :
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, ACT Treasury Directorate, GPO Box
158, CANBERRA CITY ACT 2601 or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
PAYROLL USE ONLY:
Payday:______________
Payday:______________
Payday:______________
Amount: $______________
Amount: $______________
Amount: $______________
Chris21 updated (date):_____________
Prepared:____________
Checked:____________
Salpack updated (date):_____________
Prepared:____________
Checked:____________
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 31 of 38
E–6
SHARED SERVICES
REIMBURSEMENT OF EXCESS FBT CONTRIBUTIONS
Employee Name:_____________________________________ AGS Number:______________
Employer: _____________________________________________________________________
Please make the following reimbursement for my FBT Excess for the FBT year 01 April……… ending
31 March………
Amount to be reimbursed: $______________________
Payment due date: _____________________________
PLEASE NOTE:
•
Reimbursements will be made via EFT (Electronic Funds Transfer) to your nominated bank
account. If you do not provide these details below you will not receive your reimbursement. This
account MUST be in your name.:
Bank BSB Number (Must be 6 Digits)
Bank Account Number (Up to 9 Digits)
Account in the Name of
_____________________________________________
Employee Signature :________________________________
Date: ______________
Deliver together with confirmation documentation to :
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, ACT Treasury Directorate, GPO Box
158, CANBERRA CITY ACT 2601 or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
PAYROLL USE ONLY:
Payday:______________
Payday:______________
Payday:______________
Amount: $______________
Amount: $______________
Amount: $______________
Chris21 updated (date):_____________
Prepared:____________
Checked:____________
Salpack updated (date):_____________
Prepared:____________
Checked:____________
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 32 of 38
E-7
SHARED SERVICES
CASUAL EMPLOYEE SUPERANNUATION SALARY SACRIFICE FORM
Employee Name:__________________________________________ AGS Number:_____________
Employer : ____________________________________________Payday: _____________
•
Please complete this form each fortnight to salary sacrifice your salary. Forms must be received
by COB every Wednesday of off pay week. Late forms will not be accepted.
Superannuation Contribution (excl. fee) $_______________ OR _______________% of gross salary
• $10 admin fee per fortnight transaction
• I have confirmed that sufficient casual claims have been entered into CRS to cover above amount
• I am aware that if there are not sufficient funds I will not be able to salary package or receive
any pay for this fortnight
Superannuation Fund Name: __________________________________________
Account Number/Client Code: __________________________________________
Please complete if your Super Fund accepts payment via Electronic Funds Transfer:
Bank BSB Number (Must be 6 Digits)
Bank Account Number (Up to 9 Digits)
Account in the Name of
_____________________________________________
Please complete if your Super Fund accepts payment via Cheque:
Make Cheque Payable to : ____________________________________________
Mail Cheque To Name:
____________________________________________
Address:
____________________________________________
Suburb
_____________________ Post Code: _____________
Employee Signature:
________________________________ Date:_________________
Daytime contact number: __________________________
Deliver together with confirmation documentation to :
Payroll and Personnel Services (Attention: Salary Packaging Team), Shared Services, ACT Treasury Directorate, GPO Box
158, CANBERRA CITY ACT 2601 or by Fax to 02 6207 6008 Attention: Salary Packaging Team.
PAYROLL USE ONLY:
Payday:______________
Payday:______________
Payday:______________
Amount: $______________
Amount: $______________
Amount: $______________
Chris21 updated (date):_____________
Prepared:____________
Checked:____________
Salpack updated (date):_____________
Prepared:____________
Checked:____________
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 33 of 38
The Delegate
Human Resources Manager
……………………………..……(Directorate name)
SALARY PACKAGING
REQUEST FOR WAIVER OF INDEPENDENT FINANCIAL ADVICE
I,……………………………..…………………………..(Full Name)
AGS Number………………….,
Intend to salary package ………………………………………………... (please enter item you will be
packaging) and hereby request a waiver to obtain Independent Financial Advice as required under
Section 2.1 of the ACTPS Salary Packaging Policy and Procedures, dated 12 April 2007, which became
effective from 12 April 2007.
I make this request on the understanding that any decision to proceed with an offer of Salary Package is
made without this advice and in accordance with the provisions as stated in the ACTPS Salary
Packaging Policy and Procedures.
Signed…………………………………….
Date………………………….
(Print Name)………………………………
Waiver Approved/Not Approved
Delegate
…./…./…..
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 34 of 38
Annex C - Page 1
FBT Declaration
Declaration of Odometer Readings
The completion of this declaration is mandatory each FBT year otherwise your FBT
liability and reportable fringe benefits may increase.
ORIGINAL SIGNED DECLARATIONS MUST BE RETURNED NO LATER THAN 8th APRIL
IMMEDIATELY FOLLOWING THE END OF THE FBT YEAR.
Please take the utmost care to ensure that all information provided on this declaration is
correct – no amendments will be accepted after 8th April of each year.
Fax copies will only be accepted if originals follow IMMEDIATELY.
FBT Year Ended:
Part A - Declaration of Odometer Readings - Statutory Method
I, .................................... ……declare that the total of the kilometres travelled during the period
/
/
to
/
/
was in respect of:
Make
Model
Registration Start Date
Number
Odometer End Date
Reading
Odometer
Reading
Please Note: The start date refers to the commencement of the FBT year (1 April) or the date
on which the vehicle was acquired during the first FBT year. (Date is shown on your Lease
Schedule). The end date refers to the end of the FBT year (31 March) or the date on which
your lease ceased during the last FBT year.
Number of days throughout the FBT year where vehicle was unavailable ………………………….
(e.g. due to accident/repairs. This does NOT include regular servicing or holidays)
Please note: these days do not affect the total number of kilometres you are required to travel
each FBT year.
Is your lease a Rhodium lease? (please tick)
Yes
No ………………………..………….. (please specify leasing company)
Signature…………………………………………………….Date .........................
Current Directorate/Agency…………………………………………………………
Daytime contact number……………………………………………………………..
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 35 of 38
Annex C - Page 2
FBT Declaration
Part B - Employee Contributions
Part B – To be completed when you incur expenses towards the vehicles running costs
NB: This should NOT include any post-tax amounts taken directly from your pay (ECM).
This information is automatically included in your FBT reconciliation.
I, .…........................……………..… declare that Fuel and/or Oil expenses of $……………..
(fuel/oil receipts are not required to be submitted with this declaration – these are to be kept for your own
records and for the purpose of tax auditing, on request of the ATO)
and other running expenses* of $……..................incurred by me were not included in my Salary
Package during the previously mentioned period.
Note: *Other running expenses MUST be substantiated by the attachment of original receipts/invoices to
this declaration. These receipts must be itemised and state CLEARLY what has been purchased.
Receipts that are illegible or do not clearly indicate the item(s) purchased and payment details will not be
accepted. It is your responsibility to check all receipts before submitting with this declaration to ensure
clarity.
Please ensure that you keep a copy of all your submitted documentation for your own taxation records.
Signature…………………………………
Date .........................
Please forward completed FBT Declaration with accompanying substantiation documentation to:
Attention: Salary Packaging
Shared Services
ACT Treasury Directorate
GPO Box 158
CANBERRA CITY ACT 2601
Fax: (02) 620 76008
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 36 of 38
Annex D
List of Superannuation Funds Supported through
Salary Packaging by Shared Services
AGEST
APM (Optimix)
AM Corporation
AMP
ASGARD Superannuation Account
Australian Retirement
Colonial First State Rollover and Superannuation Fund
Colonial First State – First Choice Personal Super
Colonial Mutual
Commonwealth Life
Fiducian Portfolio Services
FlexiPlan Australia
Health Super Fund
ING Life LTD
Invested Income
IOOF MAX Master Fund
Westpac Lifetime Superannuation Service
BT Portfolio Superwrap Essentials
Westpac Personal Superannuation Scheme
Merrill Lynch Superannuation and Pension Fund
MLC Masterkey Superannuation
Macquarie Bank *
Nationwide Super
State Super Financial Services
Zurich
Please note: Funds are generally provided on the basis that they each continue to provide an electronic
process for the payment of funds that is, by EFT, however, funds with cheque payment facilities only can
be supported.
*This company currently accepts funds for processing into self-managed funds via an EFT process
Additional funds may be added. Please check with the Salary Packaging Team prior to signing up with a
fund.
Shared Services Salary Packaging Manual
Version 4.2
Issued: 6 August 2012
Page 37 of 38
Robert Beith CFP B.EcDipFP
Godfrey Pembroke Financial Consultants
st
1 Floor ALIA House 9-11 Napier Close
DEAKIN ACT 2600
Tel: (02) 6285 4188
[email protected]
Andrew Boulds BSc MAppFin DFS (FP)
Milestone Financial Services
4 Campion Street Deakin ACT 2600
Tel: 02 6102 4333
Email: [email protected]
Mr Trevor Bransdon
Level 7
17-21 University Ave
Canberra ACT 2601
Tel: (02) 6249 1555
[email protected]
Mr Russell Dew B.Bus, Dip Ap.Ec.Dip Fin
Planning
Bridgeport Financial Services Pty Ltd
Suite 5 – 32 Thesiger Court
DEAKIN ACT 2600
Tel: (02) 62123555
Fax: (02) 62123599
Email: [email protected]
Charter Financial Planning
Unit 4/46 Geils Court
DEAKIN ACT 2600
Tel (02) 62324252
Fax: (02) 62325837
[email protected]
Ms Helen Elliot
Bridges Personal Investment Services
GPO Box 1974
CANBERRA ACT 2601
Tel: (02) 62474111
Fax: (02) 62487819
Julie K Ford dip FP, CFP
Tel: (02) 62862042
Fax (02) 62864552
Mobile: 0419405728
Email: [email protected]
PO Box 12
FARRER ACT 2607
Ms Sharon Green BA, CFP Dip FP
Bridges Financial Services Pty Limited
3/2 Phipps Close
DEAKIN ACT 2600
Tel: (02) 62823636
Email: [email protected]
(B)
Ian Hosking
Fiducian Financial Services
Suites 10 & 11, Royal Life Saving House, 2628 Napier Close, DEAKIN ACT 2600
Tel: (02) 61622656
Fax: (02) 61622659
[email protected]
Dominic W. Kelly
Certified Financial Planner
Empire Financial Planning
7/9 Fitzroy Street
FORREST ACT 2603
Tel: (02) 6239 6141
Fax: (02) 6232 7885
[email protected]
Wayne Lucerne BA DFS SSA
Managing Director- SMSF Specialist Advisor
Australian Investment Professionals
Suite 1/53 Dundas Court
PHILLIP ACT 2606
Tel (02) 62901496
Fax (02) 62902371
[email protected]
Edmund Kralikas
BA(Maths), BEc(hons), Dip FP
Certified Financial Planner
Charter Financial Planning
Unit 4, 3-6 Phipps Close
Deakin West ACT 2600
Ph:
02 6178 7409
Mob:
0402 143 898
Email: [email protected]
Scott Malcolm B.Comm, SSA, RLP, Adv
Dip FS (FP)
Money Mechanics
[email protected]
P 02 6257 5557
M 0417 467 468
F 02 6100 9419
Level 11, St George Centre, 60 Marcus
Clarke Street Canberra City
Mr Richard Navakas
Samantha Morris
Bridges Financial Services Pty Limited
3/2 Phipps Close
DEAKIN ACT 2600
Tel: (02) 62823636
Email: [email protected]
Janine Scott CFP
Senior Financial Planner
Empire Financial Planning
7/9 Fitzroy Street
FORREST ACT 2603
Tel: (02) 6239 6141
Fax: (02) 6232 7885
[email protected]
Mr Phil Thompson
Certified Financial Planner
Representative of Rise Financial Pty Ltd
AFSL Number 311718
Tel: (02) 62920015
www.risefinancial.com.au
Hillross Financial Services Pty Ltd
Level 7, AMP Building
1 Hobart Place
CANBERRA ACT 2601
Tel: (02) 6263 9200
Fax: (02) 6263 9222
Mr Reg Sheridan
Sheridan and Associates
Guardian Financial Planning
28 University Avenue
CANBERRA CITY ACT 2601
[email protected]
Tel (02) 62307600
Fax (02) 62628773
Shared Services Salary Packaging Manual
Scott Lilley CFP B COM DIP FP
Authorised Representative
Barnett Lilley & Associates Pty Ltd
9 Victoria Street
HALL ACT 2618
Tel: (02) 6225 8200
Fax (02) 6225 8222
Mr Brendan Minehan
National Financial Services
Matrix Planning Solutions
3/113 Canberra Ave
GRIFFITH ACT 2603
Tel: (02) 62959700
Fax: (02) 62959793
Mr Peter Orr
CFP Dip FP Dip Fin Mkts
Fiducian Financial Services
Suites 10 & 11, Royal Life Saving House, 2628 Napier Close, DEAKIN ACT 2600
Tel: (02) 61622656
Fax: (02) 61622659
[email protected]
State Super Financial Services
86-88 Northbourne Avenue
CANBERRA ACT 2600
Tel (02)-62628512
1800 620 305
*arranged alphabetically
Version 4.2
Issued: 6 August 2012
Page 38 of 38