Salary Packaging Procedure

Section 6. Benefits available to be salary packaged

The University offers the following benefits for salary packaging:

Superannuation

Staff members may salary package their superannuation contributions. Staff contemplating this option must be mindful of the Concessional Superannuation Contribution limits introduced as of 1 July 2007. Also refer to Section 4 Legislative impact on salary packaging.

UniSuper members have the option to convert their existing employee contributions (7% of gross salary) to pre-tax member contributions. The converted contributions are then considered to be employer sponsored benefits. As such there is no deduction of PAYG tax and FBT does not apply.

The advantage to the staff member is that "take home pay" is increased as a result of a reduction in income tax liability. However, the following should be noted:

• The converted contributions are considered to be 'employer sponsored benefits' and attract a 15% contributions tax. Thus 8.25% (rather than the basic 7% employee contribution) is deducted from pre-tax salary to compensate for the 15% contributions tax. However, this is as opposed to 7% being deducted from post-tax salary.
• At retirement (under age 60), salary sacrifice contributions may be subject to personal taxation whereas after tax contributions are returned free of tax.

Salary Packaging of additional contributions and additional Lump Sum Payment into Accumulation Super

Staff members may also make additional contributions to UniSuper from pre-tax salary. The standard 15% contributions tax will be deducted by the superannuation fund however, contributions above a staff member's individual cap, will attract an additional tax of 31.5% (a total of 46.5%). Pre-tax contributions to lump sum payments may also be salary sacrificed in part or total. An administration fee of 1% (maximum $200) of the lump sum packaged is charged.

A staff member is able to package any additional lump sum payment such as performance bonus, consultancy fees etc. into superannuation provided they have made prior arrangements for this to take place. This request must be made by the staff member before they become entitled to any such payment. This request is made by completing the Salary Packaging Application - Additional Lump Sum Payments into Superannuation form and submitting the form to Human Resources. This must be done before the commencement of any review or determination that may result in such a payment.

Car parking

Car parking fees charged at:

• Berwick, Caulfield, Clayton and Peninsula campuses;
• Alfred Hospital, Monash Medical Centre and Box Hill Hospital;
• the Victorian Amateur Turf Club car park; and
• Smith Street car park (near Caulfield Campus).

can be packaged through salary sacrifice without the imposition of FBT. The cost of a car parking permit may be sacrificed from gross salary and the cost allocated directly to the relevant campus authority out of the staff member's pre-tax salary.

Staff members requesting this benefit must submit the relevant car parking permit application form in accordance with respective campus requirements.

Car parking fees may be sacrificed from gross salary in equal amounts over the year and the cost reimbursed to the Alfred Hospital, Monash Medical Centre or Box Hill Hospital by Monash. Similarly, staff using the VATC or Smith Street car parks may salary sacrifice the car parking fees charged by those car parks, by sacrificing from gross salary the car parking fees in equal amounts over the year.

Portable computers, portable printers & business computer software

When purchasing the computer the staff member must ensure that the tax invoice is made out to the staff member and clearly states that the computer is a portable model. Cash Register receipts which do not include the staff member's name are not acceptable for salary packaging. To be included as a packaged item the original tax invoice must be submitted with a GST Reimbursement Claim Form (MS Word) to Human Resources.

Only items which can be salary packaged should be included on the tax invoice submitted with the reimbursement claim form. At the time of purchase the staff member should request a separate tax invoice for items which cannot be salary packaged. FBT exempt benefits do not include network cards, carry bags, modems, zip drives and microphones. Therefore these items cannot be packaged unless they are purchased as a package deal.

Where work related items are purchased by a staff member and salary sacrificed, the depreciation claim previously available is no longer available for salary packaged items.  Items purchased prior to the 13 May 2008 will continue to be depreciable only until 30 June 2008.

Business computer software installed at the date of purchase or afterwards may also be included as a packaged item provided the software has been purchased for use in the staff member's employment.

Mobile phones are exempt from FBT provided that they are used predominantly for business purposes.

Gym /aerobics membership fees, 'gold passes' (as applicable) at Caulfield, Clayton and Peninsula campuses

The fees for annual gym membership at Caulfield, Clayton and Peninsula and 'Gym plus one' membership at Clayton may be packaged. Fitness assessments and gym programs are not included.

The membership fee may be sacrificed from gross salary in equal amounts over the year and the cost allocated directly to the relevant provider of the facilities out of the staff member's pre‑tax salary. Salary packaging of gym fees, once commenced, continues on a permanent basis. If a staff member wishes to discontinue gym membership, written confirmation from the gym manager of the cessation of membership, along with a written request from the staff member to amend salary packaging arrangements must be approved to cease salary packaging gym membership.

Qantas Club membership

Qantas Club membership including life membership is exempt from FBT and may be salary packaged. To be included as a packaged item the staff member is required to pay the membership fee and request reimbursement of the cost of the membership as part of the remuneration package. Staff should consult the University's travel website prior to applying for or renewing membership to take advantage of corporate membership rates. Corporate membership rates are available to all University staff. The cost of the membership is deducted from gross salary and reimbursed in the same pay period. GST exclusive cost of the membership can only be salary packaged.  When paying for Qantas Club membership the staff member should request a receipt as the original receipt must be submitted with a GST Reimbursement Claim Form (MS Word) to Human Resources to seek reimbursement for the GST component.

Child care fees

Fees payable for the use of child care services at the Monash related child care centres listed below are exempt from FBT and may be salary packaged. The eligible centres are:

• Monash Caulfield Child Care Association Inc Caulfield
• Monash Children's Centre Clayton
• Monash Community Family Co-Op Ltd Clayton
• Students with Children Child Care Centre (SWICH) Clayton
• Pooh Corner Child Care Centre Gippsland

Before proceeding further you may wish to assess your specific circumstances using the  estimator [Microsoft Excel]. This is not to be deemed as financial advice. You are reminded to seek financial advice in relation to making any decision regarding salary packaging.

The child care fees may be sacrificed from gross salary in equal fortnightly amounts and the cost allocated directly to the relevant child care centre out of the staff member's pre-tax salary. Staff who request to salary package their child care fees should forward, with their salary packaging application, a statement from the child care centre of the fortnightly fees payable. Such fees will not attract GST.

It is important to note that there is no entitlement to Child Care Benefits (CCB) or Child Care Tax Rebate (CCTR) from the Family Assistance Office, at the Commonwealth Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), where parents salary package their child care fees.  Under salary sacrifice arrangement Monash is liable for payment of fees to the child care centres, therefore the parents are not eligible to receive CCB or CCTR.

If parents do not salary package their full child care fees, but only salary package part of the child care fees, child care benefits may be offset against the fee which is directly payable by the parents. The child care service will calculate the level of child care benefits to which the parents are entitled in these circumstances, using the parent's liability to pay fees (i.e: the amount that is not salary packaged) against the total number of hours that they use the child care service for the week. The child care centres also have local policies in regards to the administration of the centres which are not related to this salary packaging procedure which impact on the families.

Motor Vehicles

Motor vehicles may be salary packaged in accordance with the terms of the Novated Leasing Policy.

Obtaining valid tax invoices

A valid GST tax invoice must also be obtained in respect of packaged items such as a lap top computer, PDA, portable printer, mobile phone and Qantas Club membership. The University will generally be entitled to claim a GST input tax credit in respect of reimbursements to staff. The University is not able to claim a GST input tax without a valid tax invoice in respect of the amount being salary packaged by a staff member. In this regard, the cost which a staff member will be able to salary sacrifice will be exclusive of GST.

Refer to the relevant salary packaging provisions of the applicable University enterprise agreements and AWA Terms and Benefits Policies.