• Section 1 - Introduction
• Section 2 - Purpose
• Section 3 - Eligibility and Scope
• Section 4 - Policy Principles
• Section 5 - Administration
• Salary Packaging Arrangements and Amendments
• Termination of Packaging
• Section 6 - Responsibilities
• Section 7 - Approved Salary Packaging Benefits

Section 1 - Introduction

(1) The University of Newcastle (University) offers salary packaging to eligible staff. Salary packaging is designed to provide an opportunity to structure remuneration in a tax effective manner, in accordance with Australian taxation laws.

(2) Salary packaging is a key benefit that enhances the University's reputation as an employer of choice, providing incentives to current and prospective staff.

Section 2 - Purpose

(3) This policy outlines the University's salary packaging arrangements and requirements for their management.

Section 3 - Eligibility and Scope

(4) Continuing and contingent staff members have access to the full range of approved salary packaging benefits.

(5) Fixed term staff members have access to a reduced range of approved salary packaging benefits, limited by the term of their employment.

(6) Casual staff members may package a fixed percentage of their salary to their nominated superannuation scheme.

(7) This policy does not apply to staff employed by controlled entities of the University.

Section 4 - Policy Principles

(8) Eligible staff can choose to package up to 100% of their gross salary after authorised deductions in certain circumstances.

(9) Salary packaging is voluntary and must be entered into prospectively. All available salary packaging benefits will comply with the Fringe Benefits Tax Assessment Act 1986 and Australian Taxation Office (ATO) requirements and will fall within three FBT categories:

1. Exempt Benefits;
2. Otherwise Deductible Benefits;
3. Concessionally Taxed Benefits.

(10) Fully taxable benefits are not available under the University's salary packaging scheme.

(11) The list of salary package benefits made available to eligible staff may be varied at any time and will be subject to approval by the Vice-Chancellor.  Refer to Appendix A for approved benefits.

(12) The administration of salary packaging may be undertaken either through in-house arrangements for selected benefits or by utilising the services of an external provider.

(13) Salary packaging arrangements are to be provided at no cost to the University. Staff who choose to enter into salary packaging arrangements will be responsible for all applicable administration fees, charges and taxes. Any outstanding costs associated with salary packaging owed by staff members to the University, including Fringe Benefits Taxation liability, will be deducted from the staff member’s salary in accordance with the following timeframes:

1. $0 to $500 over one pay period;
2. $500 to $1,000 over two pay periods;
3. $1,000 to $2,000 over three pay periods;
4. $2,000 to $3,500 over four pay periods;
5. Above $3,500 by negotiation, but not to exceed six pay periods.

Section 5 - Administration

Salary Packaging Arrangements and Amendments

(14) Salary packaging arrangements are subject to the terms and conditions prescribed by the relevant salary packaging provider and the specific category of benefit being packaged.

(15) Eligible staff members who choose to salary package must ensure that their salary packaging arrangement is authorised and executed in accordance with the requirements stipulateed by the relevant salary packaging provider. Staff entering into novated lease agreements must obtain approval from an authorised delegate.

(16) Staff may amend their salary packaging arrangements, subject to the terms, conditions and authorisation processes required by the applicable provider and relevant taxation laws.

(17) The University reserves the right to review and adjust salary packaging arrangements in line with changes in legislation, taxation rulings, or University policy.

Termination of Packaging

(18) Salary packaging arrangements will automatically terminate upon cessation of employment with the University.

(19) Staff may opt-out of salary packaging by providing written notice, subject to the terms and conditions outlined in their agreement.

(20) In cases of termination of employment or withdrawal from salary packaging, all outstanding amounts, including any tax liabilities, must be settled before the final salary payment is made.

Section 6 - Responsibilities

(21) The Chief Financial Officer is responsible for ensuring the salary packaging arrangements comply with relevant taxation laws and regulations, including the Fringe Benefit Tax Assessment Act 1986 and guidelines provided by the Australian Taxation Office (ATO).

(22) The Chief Financial Officer will monitor changes to the range of available benefits as defined by the ATO.

(23) The Chief People and Culture Officer will regularly review and update this policy to comply with any changes in taxation laws or related regulations. Staff will be informed of significant changes that may impact their salary packaging arrangements.

(24) Staff members are responsible for seeking independent financial advice, particularly in relation to FBT and income tax issues and associated implications, prior to entering into a salary packaging arrangement. A salary packaging arrangement may effect:

1. The Medicare Levy Surcharge;
2. study and training support loan compulsory repayments;
3. some tax offsets;
4. child support payments;
5. some government benefits.

Section 7 - Approved Salary Packaging Benefits

(25) The following salary packaging benefits are approved as at the effective date of this Policy:

(26) For further information please refer to the Salary Packaging website.