Salary Packaging Program

Policy HR & Staff Development Salary Packaging Program

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Intent

The intent of this policy is to enable staff members to participate in a salary packaging program, whereby the staff member can receive part of their salary in the form of benefits, payment of which is deducted from the staff members’ pre-tax salary rather than after-tax salary.

Scope

This policy applies to new or existing staff members of JCU Australia. It does not apply to casual staff and short-term academic visitors or adjuncts.

Definitions

Nil

Policy

1. Principles

1.1 A staff member, other than a casual staff member, may enter into a salary packaging program, to the extent possible under legislation, from a list of items and conditions prescribed by JCU’s Salary Packaging Program - Benefits Guide.

1.2 A Salary Packaging Program should not normally be greater than 50% of a staff member’s remuneration received from the University.  It is the responsibility of the staff member to immediately inform the University and its salary packaging provider of changes in their circumstances that have, or are likely to have, an effect on their capacity to receive 50% of their remuneration.

1.3 A staff member should seek their own professional legal, financial and taxation advice.  The University accepts no liability for staff members failing to obtain advice on financial matters concerning their remuneration.

1.4 A staff member who enters into a Salary Packaging Program agreement, either directly with JCU or via JCU’s salary packaging provider, will be subject to all terms of the agreement.

1.5 Salary packaging arrangements must comply with relevant taxation legislation and rulings, which may change occasionally. The University will endeavour to provide advance notice of any change to the benefits and arrangements available.  Where advance warning may not be possible, for example if there are legislative changes which have immediate or retrospective effect, notification will be sent as soon as practicable.

1.6 In accordance with the Australian Taxation Office rules, salary packaging arrangements must operate prospectively.

1.7 All Fringe Benefit Tax (FBT) liabilities and administrative costs associated with salary packaging are to be met by the staff member.

1.8 All costs associated with salary packaging are the financial responsibility of the staff member and are to be met by the staff member, including in circumstances such as leave without pay or termination of employment.

1.9 A staff member accepts that JCU will recover any payment of salary and benefits paid in advance.

1.10 The University bears no liability or responsibility to meet any obligation, financial or otherwise, arising from a staff member’s decision regarding participation in any salary packaging arrangements.

1.11 The University reserves the right to terminate any salary packaging arrangement in the event of a serious breach of agreement by the staff member.

Related Policy Instruments

Related policy instruments include but are not limited to the following documents. Further related instruments can be found at the JCU Human Resources website.

  • JCU Enterprise Agreement 2013 – 2016, particularly clause 36. Salary Sacrifice

Schedules/Appendices

nlc Salary Packaging Fact Sheet

Administration

Approval Details

Policy Sponsor

Deputy Vice Chancellor, Services and Resources

Approval Authority

Human Resources Committee

Date for next major review

23 February 2019

Revision History

Approval date - the date the approval authority approved the establishment, minor or major amendment or disestablishment

Implementation Date - the date the policy was published in the Policy Library and is the date the policy takes effect

Version

Approval date

Implementation date

Details

Author

16-1

23/03/2016

4/05/2016
  • Separation of Policy and Procedure, aligning   to JCU’s approved Policy and Delegations Framework.
  • Details of benefits removed from policy   and procedure, and contained in supporting Salary Packaging Program - Benefits   Guide.

Deputy Director, Human Resources

Keywords

Salary packaging program, salary packaging, salary sacrifice, flexible remuneration, benefits guide, salary packaging – benefits guide.