Salary sacrifice of eligible items (not portable electronic devices)
Who is eligible?
Continuing and fixed term contract staff members appointed under a University of South Australia industrial instrument are eligible to salary sacrifice. Casual staff members are ineligible to salary sacrifice eligible items; please refer to the Salary Sacrifice Guidelines & Conditions for further information.
What are the costs?
A one of $10 set up fee and $5 per fortnight administration fee apply for all items/expenses salary sacrificed except commercial car park fees which attract a $5 fee for each claim made.
What conditions apply?
A number of items are exempt from fringe benefit tax (FBT). Conditions apply depending on what section of the Fringe Benefits Act (FBTAA) the item relates to i.e. either exempt or otherwise deductible:
Exempt items
Items claimed must be primarily for use in the staff member's
employment.
Otherwise deductible items
Items would normally be claimable via the staff member's income tax
return if not salary sacrificed. A signed 'Otherwise Deductible Declaration'
from the staff member will be required when claiming membership fees for a
work-related professional association and cost in managing tax affairs.
What can I salary sacrifice?
The following items may be salary sacrificed subject to the conditions outlined above.
1. Exempt items
- Work-related casual and permanent car parking fees at a commercial
car park, claimable on a monthly basis.
Note: For salary sacrificing car parking fees through Campus Services please refer to the following web site for further information: http://www.unisa.edu.au/hrm/employment/remuneration/sacrifice/car.asp - Work-related membership fees and subscriptions.
- A subscription to a trade or professional journal
- An entitlement to use an airport lounge membership.
Please note: You may also be eligible for corporate membership and information on this can be found on the Finance website: http://www.unisa.edu.au/fin/travel/qantasclub.asp
2. Otherwise deductible items
- Membership fees for a work-related professional association.
- Cost of managing tax affairs.
Please note: Restricted to services provided by either:- A registered tax agent listed on the Tax Practitioners Board's Tax and BAS Agent register – staff members are required to provide evidence of the tax agent's registration prior to approval. http://www.tpb.gov.au/tpb/agent_register.aspx
- A legal practitioner – staff members are required to provide evidence of the adviser’s status as a legal practitioner prior to approval.
How does it work?
- The staff member purchases/pays for the item.
- The GST is refunded to the staff member in full.
- The cost of the item is deducted from pre-tax earnings reducing the taxation liability over the minimum number of pays.
Example
A staff member on a fortnightly salary of $2,450 seeks to salary sacrifice car parking fees costing $220.00($200 + $20 GST).
| Salary Component | Before Packaging Per Fortnight$ | After Packaging Per Fortnight$ |
|---|---|---|
| Gross Salary | $2,450 | $2,450 |
| Less pre-tax car parking fees | $ 200 | |
| Less pre-tax UniSA administration fee | $ 5** | |
| Taxable Gross Salary | $2,450 | $2,245 |
| Less Estimated Taxation | $526 | $458 |
| Plus reimbursement of car parking fees | $ 220 | |
| Paid by UniSA | $1,924 | $2,007 |
| Less post-tax car parking fees | $ 220 | $ 220 |
| Net Take-home salary | $1,704 | $1,787 |
| Total saving made by salary sacrificing car parking fees | $83 |
Note: * Cost less the GST is salary sacrificed.
** Based on the $5 fortnightly administration fee.
What do I do next?
- Read the Salary Sacrifice Guidelines & Conditions
- Attach the original tax invoice and proof of payment to the HRIS 044 - Salary Sacrifice Form
- 3. If the salary sacrifice claim is for managing tax affairs or membership fees for a work-related professional association please complete the appropriate declaration on page 2 of the HRIS 044.
- Forward HRIS044, original tax invoice and proof of payment to the
Consultant Salary Sacrifice,
Human Resources Unit, Third Floor, 101 Currie Street, GPO Box 2471, Adelaide 5001
Disclaimer
The University of South Australia, its staff members or agents are not engaged in providing 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 staff member. The University of South Australia accepts no liability should the staff member fail to seek financial advice or for financial and taxation advice received by the staff member. A directory of financial planners is available from the Financial Planning Association at http://www.fpa.asn.au/