Human Resources Unit
The Salary Sacrifice Guidelines & Conditions should be read in conjunction with the Remuneration and Reward Policy (Policy No HR-28.1) and associated guidelines as well as the applicable industrial instrument of the University (as amended or replaced).
Salary sacrifice is offered at no additional cost to the employer, any costs associated with providing salary sacrifice will be charged to the employee.
The scheme includes:
For further assistance contacts
Industrial Instrument – refers to the applicable Collective/Enterprise Agreement, Award, Australian Workplace Agreement, contract of employment or legislation.
The University of South Australia, its employees or agents are not engaged in rendering advice and any information received should be confirmed with independent sources i.e. Accountant or Financial Adviser. Any cost incurred in obtaining financial advice is the responsibility of the employee.
The University of South Australia accepts no liability should the employee fail to seek financial advice or for financial and taxation advice received by the employee. A directory of financial planners is available from the Financial Planning Association at http://www.fpa.asn.au/
What is salary sacrificing?
Are all employees eligible to salary sacrifice?
Can salary sacrifice arrangements be backdated?
What are the administrative costs associated
with salary sacrifice, and who meets them?
Should an employee obtain independent advice
before entering into salary sacrifice arrangements?
What happens to the salary sacrifice arrangements if
an employee is absent on leave?
Is salary sacrifice only beneficial to high-income
earners?
How does salary sacrificing affect an employee’s
existing UniSA entitlements?
What is the maximum gross salary that can be salary
sacrificed?
Does salary sacrifice have any affect on an
employee’s retirement benefits?
How are salary sacrifice payments reflected on the
employee’s payment summary?
Salary sacrifice is an arrangement where employees can negotiate with the University to forego a component of their cash salary in return for specific non-cash benefits of equivalent value. Payments are made from the salary pre-tax thereby reducing the taxable income. These payments are said to be University provided benefits.
No, only employees employed on a non-casual continuing basis or fixed term contract for more than twelve months are eligible to salary sacrifice.
No, a salary sacrifice arrangement must be in place prior to receiving or becoming entitled to receive the benefit.
The University provides salary sacrifice to employees on a cost neutral basis. Any costs incurred with providing a benefit is passed onto the employee i.e. FBT. An administration fee is charged for the salary sacrificing of:
| Salary Sacrifice Item | UniSA Administration Fee |
| UniSuper | Nil |
| Private/Self-Managed Super | $5 per fortnight fee plus a $30 set up-fee for each item packaged and for each new arrangement made |
| Car Parking | $10 set up fee per annum |
| Motor vehicles-SSVS/Novated/Associate | $13 per fortnight fee plus a $30 set-up fee for each vehicle leased |
| FBT Exempt Benefits and Otherwise Deductible Benefits | $5 per fortnight fee plus a $10 set up fee for each item salary sacrificed |
It is recommended that all employees wishing to enter into a salary sacrifice arrangement with UniSA seek independent financial advice.
Salary sacrifice arrangements will continue while the employee is on leave at full pay. However, while an employee is on leave without pay or on half pay, arrangements will need to be made by the employee to ensure continuity of payment to the University. Employees who fail to ensure payments are maintained as agreed in the Salary Sacrifice Agreement will be in breach of the Agreement.
Note 1: Prior to the commencement of leave without pay, suspension of superannuation contributions and other benefits (excluding motor vehicle lease payments) are possible.
Note 2: Employees are not able to delay motor vehicle payments. Prior to the commencement of leave without pay, the Salary Sacrifice Officer will need to be advised of the alternative arrangements that have been made to ensure motor vehicle leasing payments are maintained.
Not necessarily, although higher income earners gain more benefit from salary sacrificing items as they have a higher marginal tax rate. Nevertheless, the benefits of salary sacrifice will vary with each individual.
All existing entitlements – superannuation, leave payments, termination payments, leave loading etc. will continue to be based on the employee’s gross salary before salary sacrifice.
A total of 50% of the gross salary is able to be salary sacrificed unless otherwise approved by the Vice Chancellor (or nominee).
Salary sacrifice of superannuation contributions may affect retirement benefits, hence the need for independent financial advice prior to entering into any salary sacrifice arrangement with the University.
The gross income (less salary sacrifice items) will appear on the employee’s payment summary including any Reportable Fringe Benefits (RFB) (if any). Please refer to Salary Sacrifice Guidelines and Conditions for further information on RFBs.
The University of South Australia, its employees or agents are not engaged in rendering advice and any information received should be confirmed with independent sources i.e. Accountant or Financial Adviser. Any cost incurred in obtaining financial advice is the responsibility of the employee.
The University of South Australia accepts no liability should the employee fail to seek financial advice or for financial and taxation advice received by the employee. A directory of financial planners is available from the Financial Planning Association at http://www.fpa.asn.au/
