ACT Health Salary Packaging: ACT Health Salary Packaging Arrangements

Salary packaging allows you to restructure your remuneration package by paying for certain benefits with before-tax dollars. This arrangement may save you thousands each year.

Ensure all supporting documentation meets the Australian Taxation Office requirements and JCU policy guidelines. Failure to do so could result in your salary packaging arrangements being withdrawn. For more information about the ACT health salary packaging arrangements, click here.

Benefits
Salary packaging is an Australian Taxation Office-accepted way for you to pay for a range of expenses with pre-tax dollars. It allows you to increase your disposable income and save thousands of dollars each year.

In-house salary packaging is available for items such as laptops/PDAs, childcare and on-campus parking, with external providers able to provide salary packaging for novated car leasing and additional superannuation contributions to your preferred fund. It is essential to seek financial advice before deciding on the right package.

It is your responsibility to monitor your salary packaging and ensure that you do not breach the Fringe Benefits Tax (FBT) cap on general living expenses, entertainment benefits or any other FBT concessional contribution capped item. FBT payments are gross-up by the FBT Type 2 gross-up rate and reported on your payment summary.

It is your responsibility to notify SalaryPackagingPLUS if you intend to breach the Superannuation Concessional Contributions Cap and provide SalaryPackagingPLUS with documentation to confirm this. If you do not inform SalaryPackagingPLUS, HCC may withdraw consent for your participation in the Salary Packaging and Employee Benefits Program immediately.

Tax
ACT Health uses Advantage Salary Packaging, an Australian-based company specialising in salary packaging. They work with more than 160,000 people to help them save money and reduce their taxable income.

HCC will keep the terms of the Employee’s Salary Packaging Arrangement confidential between them and AccessPay and will not disclose those terms to any person (other than an AccessPay representative) without the Employee’s consent. The Employee agrees to monitor their requirements and eligibility under the superannuation Concessional Contributions Cap and will make any necessary changes to their Salary Packaging Arrangement as required. The Employee also understands that their Salary Packaging Arrangement may be amended at any time by AccessPay due to legislative change or other operational reasons.

Fees
HCC offers salary packaging options to employees to attract and retain staff and support our staff’s remuneration needs. Salary packaging, also known as “sacrificing”, enables employees to reduce their income tax by preceding some cash salary in exchange for fringe benefits. It allows employees to gain benefits, items or services unavailable to non-salary packaged staff.

Staff should note that all fees associated with salary packaging (such as the initial financial advice about establishing a package and ongoing service charges) are the responsibility of the staff member. It is in addition to any FBT payable on the packaged goods and services. For more information about the ACT health salary packaging arrangements, click here.

Staff must ensure that their expense items do not breach the grossed-up reporting thresholds set by the Fringe Benefits Tax legislation. That is particularly the case with motor vehicles. If any expenses are reported to exceed the gross-up reporting thresholds, it is the staff members’ responsibility to contact their salary packaging provider as soon as possible.

Support
Your salary packaging provider will provide various services to help you maximise your fringe benefit entitlements. These include arranging and administering your novated lease, providing information, advice and assistance, processing claims, and obtaining documentation for tax purposes.

If you salary package a car, it will be your responsibility to pay the monthly rental and fuel costs and the ongoing running expenses of the vehicle (including insurance and roadworthy certification). It is recommended that you obtain independent financial advice before accessing this service.

You will be required to maintain records of all purchases made as part of your salary packaging arrangements, including supporting documentation, for five years from the date of purchase. It is by the Fringe Benefits Tax Assessment Act and Tax Office Rulings.