Salary Packaging Program Policy

Intent

This Policy has been developed to enable the delivery of the Salary Packaging Program for Staff Members of James Cook University (JCU; the University).

Scope

This Policy applies to all continuing and fixed-term Staff Members covered by the JCU Enterprise Agreement.

Definitions

Except where otherwise defined in this policy, definitions for terms used in this policy are located in the Human Resources Policy Glossary.

Policy

1. Principles

1.1 JCU utilises the Queensland Government Salary Packaging Arrangement for both the Salary Packaging Administration Services SOA (QGP0065-21) and the Salary Packaging Novated Leasing Services SOA (QGP0066-23). Salary packaging for Superannuation is managed by the Remuneration Services team in Human Resources.

1.2 An eligible Staff Member may choose to voluntarily enter into a salary packaging program, not normally greater than 50% of their remuneration, to the extent possible under legislation, from a list options as published in the Salary Packaging Program Knowledge Base article.

1.3 The University reserves the right to add or remove a salary packaging item at any time in order to comply with relevant changes in legislation and the changing needs of staff.

1.4 The Staff Member is responsible for seeking independent financial advice before entering into salary packaging arrangements with the University’s salary packaging provider to ensure they understand the terms and conditions and the effects salary packaging arrangements can have on their personal financial circumstances.

1.5 The University accepts no liability for Staff Members failing to obtain advice on financial matters concerning their remuneration. 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.

1.6 The Staff Member must immediately inform the University and/or 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.

1.7 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 in accordance with the Australian Taxation Office rules, salary packaging arrangements must operate prospectively.

2. Salary Packaging and Fringe Benefits Tax (FBT)

2.1 The Income Tax Assessment Act 1936 (Cth) and Income Tax Assessment Act 1997 (Cth), and the Fringe Benefits Tax Assessment Act 1986 (Cth) regulate and define the types of benefits the University can provide to their Staff Members and the relevant tax payable on such benefits. These arrangements may change from time to time.

2.2 FBT ensures that tax is paid on benefits that are provided in place of, or in addition to, salary or wages of staff members unless the benefit is exempt from FBT.

2.3 FBT is payable by the University and is assessed on the value of fringe benefits provided to staff members or their associates (third parties). Under these arrangements all costs including liabilities and administrative costs will be passed on to the staff member.

3. Terminating the Salary Packaging Program

3.1 The University reserves the right to terminate any salary packaging arrangement in the event of a serious breach of agreement by the Staff Member.

3.2 A Staff Member may terminate their salary packaging arrangements with the University and/or salary packaging provider at any time including cessation of employment by notifying their salary packaging provider.

3.3 A Staff Member who chooses to terminate their salary packaging arrangements with the University and/or salary packaging provider, remains liable for any obligations that have been made. The University accepts no liability in relation to non-payment of a debt/commitment incurred by a Staff Member under salary packaging arrangements. Where an overpayment occurs, the Staff Member agrees that JCU will recover this overpayment in accordance with the Enterprise Agreement.

Related policy instruments

Salary Packaging Program Procedure

JCU Enterprise Agreement

Schedules/Appendices

Salary Packaging Knowledge Base article

Related documents and legislation

Fringe Benefits Tax Assessment Act 1986 (Cth)

Income Tax Assessment Act 1936 (Cth)

Income Tax Assessment Act 1997 (Cth)

Administration

NOTE: Printed copies of this policy are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Revision History