Salary Packaging Procedure

Section 3. How salary packaging works

Under the salary packaging arrangement a staff member can request the University to provide certain benefits (as outlined in this Procedure). The University pays for these benefits on behalf of the staff member, instead of providing gross salary with Pay As You Go (PAYG) or personal income tax deducted. In return, the staff member agrees to 'sacrifice' or forego the cost to the employer of providing the benefit.

Employer provided benefits which are provided as an alternative way of remuneration (i.e. by way of fringe benefits) are not assessable under the PAYG system, thus may provide tax advantage for the staff member.

At present, the benefits offered to University staff are either FBT exempt items or motor vehicles, which are concessionally taxed. Please refer to Novated Leasing arrangements.

Benefits that are able to be claimed as an income tax deduction when preparing an annual income tax return are not available for salary packaging (with some noted exceptions) as there is no tax advantage to this arrangement