Member's Guide to ADF Pay and Conditions in Australia – see Disclaimer
– check
3.4
Salary packaging
How does it work?
You can convert up to 100% of
your salary (including service allowance) to a range of items.
What items can I access
under salary sacrificing?
You can access one or more of
the following items.
·
A motor vehicle through a novated
or associate lease arrangement. This does not include motor cycles or
commercial vehicles.
·
Employer-provided childcare (i.e.
childcare provided on Defence premises).
·
Additional superannuation contributions. They must be paid into a complying fund under the Superannuation
Industry (Supervision) Act 1993. Contributions may be made into the MSBS
scheme.
·
Income protection insurance.
·
Briefcases, calculators and electronic
diaries.
·
Mobile phone expenses. The phone must mostly be used for business purposes.
·
Laptop and notebook computers.
·
Airline lounge membership.
·
Salary packaging advice.
·
Work-related computer software.
·
Home office expenses that are work
related.
·
Work related travel expenses that Defence
approves but does not pay for. This includes fares, meals, accommodation
and incidental expenses.
·
Membership fees to professional
associations.
·
Subscriptions to professional journals
and publications.
·
Taxi travel. You must be dependent on taxi travel to travel to and
from work due to a disability.
·
Newspapers and periodicals. These must be directly related to your work.
·
Uniforms. This does not include uniforms provided for under
uniform allowance. It also does not include protective clothing.
·
Self-education expenses that are work
related.
·
Tools of trade.
Is it a good deal?
That depends, and you may
need financial advice to see if it will save you money. Some or all of the
costs of the item are paid from money before it is taxed. You may have to pay
other fees, which might be more than that saving.
These could include establishment
and administration costs, fringe benefits tax and superannuation taxes. Before
signing up you should get financial advice. This is especially true for the
larger items such as a car or superannuation.
What else?
Your 'pre-package' salary
will still be used for some things.
·
To work out superannuation contributions and benefits.
·
To work out compensation payments.
·
To work out final entitlements on separation from the
ADF.
Being in the scheme will not
affect the amount of other charges you must pay.
·
Medicare levy.
·
Child support payment.
Want more information?
You can find more information
on http://www.smartsalary.com.au.
Also on the ATO site on salary
sacrificing superannuation.
Application to Reservists: No, except for Reservists on continuous
full-time service. The salary packaging arrangements must be completed in the
period of full-time service.
Reference: Defence Workplace Relations Manual, Chapter 9
Part 4 (See http://www.defence.gov.au/dpe/pac/.)