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Salary Packaging Policy

Section 1 - Policy Principles

(1) This policy supports the University of Newcastle’s (University) commitment to supportive and flexible working arrangements for staff in achieving its vision.

(2) This policy should be read in conjunction with the information contained in the Salary Packaging website.

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Section 2 - Policy Intent

(3) This policy outlines the University’s salary packaging arrangements. Salary packaging is a benefit and retention strategy for existing staff, and an important element in developing the University's reputation as an employer of choice in a competitive market place.

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Section 3 - Policy Principles

(4) All continuing, fixed term and casual staff members (as defined by the Enterprise Agreement) are eligible to participate in the University’s salary packaging scheme. Due to the nature of their employment, casual staff members are only eligible to salary package a fixed percentage of their salary to the UniSuper superannuation scheme. Likewise, fixed term  staff members may not have access to the full range of salary packaging benefits and would be limited by the term of their employment.

(5) Eligible staff can elect to sacrifice up to 100% of their gross salary after authorised deductions in certain circumstances.

(6) 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 the Australian Taxation Office (ATO) requirements and will fall within three FBT categories:

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

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

(8) The University will monitor changes to the range of available benefits as defined by the ATO. The list of salary packaging benefits made available to eligible staff will be subject to approval by the Vice-Chancellor.

(9) Staff members are responsible for seeking independent financial advice, particularly in relation to FBT and income tax issues prior to entering into a salary packaging arrangement.

(10) 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. Please refer to the Salary Packaging website for benefits that are available to be packaged, and for details of the external provider.

(11) Salary packaging arrangements are to be provided at no cost to the University. Staff electing 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.