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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

2. Otherwise deductible items

How does it work?

  1. The staff member purchases/pays for the item.
  2. The GST is refunded to the staff member in full.
  3. 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?

  1. Read the Salary Sacrifice Guidelines & Conditions
  2. Attach the original tax invoice and proof of payment to the HRIS 044 - Salary Sacrifice Form
  3. 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.
  4. 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/

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