Salary packaging is a voluntary scheme that allows staff to receive part of their pay in a form other than take-home pay (cash).
It is sometimes referred to as salary sacrificing.
By packaging their salary, employees receive part of their pay as cash and part of it as a benefit. The benefit is paid on the employee's behalf by the University, the employee receives less pay and, therefore, pays less PAYE income tax on their reduced income.
Salary packaging is available to members of staff covered by the Academic Staff, Professional and General Staff, ELICOS or Child Care agreements who, at the time of entering into salary packaging, are on a minimum three (3) month or longer employment contract.
Current items able to be packaged are listed in what can be packaged.
Under current regulations, all the listed benefits are exempt from Fringe Benefits Tax (FBT) except for the novated car leases, which are subject to FBT.
Salary packaging has its advantages and disadvantages and will depend upon personal circumstances.
The net gains to be made must be weighed against potential future taxation penalties in regard to packaging superannuation contributions and the potential loss of Government financial assistance for parents who salary package fees for University-provided child care.
The University strongly recommends that employees seek professional, financial advice prior to entering into a salary packaging arrangement, especially related to superannuation.
Detailed information about salary packing at UWA, including superannuation issues:
UWA's Salary Packaging Policy defines the nature and purpose of salary packaging as a significant attraction and retention benefit to employees of the University. It outlines the benefits, eligibility, fees and tax implications and requirements.
This policy does not apply to casuals
This salary packaging calculator has been designed to assist in determining the possible impact of packaging a range of items available and is not comprehensive. It is only intended to show a possible effect of packaging in a given scenario. When this file is opened, you need to "ENABLE" macros.
Contact Rose Cunningham for further information.
The taxable gross calculator has been designed to assist employees with estimating their Gross Salary, Taxable Gross Salary and Reportable Employer Superannuation Contributions on an annual basis. It requires employees to enter fortnightly contribution values that are then converted to annual contribution values.
This tool is to be used as a guide only. All final details for Taxable Gross Salary, Reportable Employer Superannuation Contributions and Reportable Fringe Benefits will be provided on the employee's Payment Summary at the end of the financial year.