Human Resources

Salary packaging

Further information

  • Salary Packaging policy
  • Salary Packaging: Novated car lease information session

Salary packaging is a tax effective way of receiving salary as a combination of income and benefit.

As per the Australian Taxation Office (ATO) regulations for organisations such as Universities, items listed in the section “What can be salary packaged” below are available to employees through salary packaging. Please refer to the Salary Packaging Policy for a full statement.

Definition

As per the Australian Taxation Office (ATO) definition, salary packaging is an arrangement by which an employee agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value. It is sometimes referred to as salary sacrifice.

Eligibility

Salary packaging is a voluntary scheme for employees and is open to member of staff covered by their respective agreement (Academic, Professional and General, ELICOS or Child Care). Salary packaging is available to employees with an ongoing position or with a fixed term contract period of three (3) or more months. Casual employees are not eligible.

Independent Advice

Employees are recommended to seek independent financial advice as salary packaging net benefit will depend upon individual personal circumstances. The net gains to be made must be weighed against potential future taxation. UWA HR staff can provide general information and instructions on how salary packaging can be processed through payroll but is not licenced to provide calculation considered as financial advice.

Salary Packaging Agreement

Employees must enter into a generic salary packaging agreement prior starting any salary package. The benefit can not be processed retrospectively. To organise a salary packaging agreement, please email salarypackaging@uwa.edu.au.

Salary Packaging Fee

A fee applies to any salary packaging items. It is from 1% to 3% of the amount and is deducted pre-tax. Please refer to each item for the relevant salary packaging fee %.

Fringe Benefit Tax (FBT)

Under current regulations, all the listed benefits are exempt from FBT except for the novated car leases, which are subject to FBT. Please visit the ATO and UWA webpage on FBT to find out more information.

Responsibilities

Employees need to advise HR for any changes that can affect their salary packaging arrangement, such as: change in FTE, leave without pay, pay in advance, end of employment etc. Employees are responsible for any repayment and money owing through salary packaging arrangement to UWA. When on fixed contract, deductions are required to be set up within the employment dates (except for Novated Car Lease). If an employee does not have sufficient salary to support the pre-tax deductions, this can result in a delay in processing the pay and arrears to be settled. Employees can inform HR by emailing salarypackaging@uwa.edu.au.

What can be salary packaged

Salary packaging contact details

Employee Benefits (salary packaging) – HR Services and Employee Benefits

Enquiries and forms processing salarypackaging@uwa.edu.au

Or contact Benefits Officers

Ms Jacqueline Tay
+61 8 6488 7893
jacqueline.tay@uwa.edu.au

Melinda Fisher
+61 8 6488 7472
melinda.fisher@uwa.edu.au

 

Back to top