Frequently Asked Questions - Salary Packaging
- What is Salary Packaging?
- What benefits can be salary packaged?
- What are the FBT implications?
- Are there fees or charges?
- Can we use another leasing company?
- Should I seek Financial advice?
- How does it affect my reportable salary?
- What counts as an in-house benefit?
- Does Salary Packaging affect Super or other entitlements?
What is Salary Packaging?
Salary packaging or salary sacrificing is a mechanism that allows you to reduce the amount of salary considered for PAYG tax (income tax) by electing to receive a portion of your salary as pre tax benefits rather than wages.
What benefits can be salary packaged?
- Child Care
- Membership to Professional Associations
- Self Education Expenses
- In House Benefits
- Superannuation
- Corporate Uniforms
Are there fees or charges?
CSU does not charge any fees, however there is provision to charge a nominal fee if administration of the scheme requires it. Fleet Partners manages the novated leasing of vehicles. Management and administration fees are included in lease agreements.
Can we use another leasing company?
Esanda Fleet Partners have been chosen by Charles Sturt University to be the finance provider. Esanda Fleet Partners have been assessed by Charles Sturt University as providing a competitive interest rate, pro-active Fleet management along with user-friendly documentation and service orientation.
Should I seek Financial Advice?
There are a variety of complex financial and legal considerations involved in choosing whether to participate in salary packaging. A qualified financial adviser can assist you to determine whether salary packaging can be of assistance to you in meeting your existing financial commitments as well as future financial goals.
What counts as an in-house benefit?
- Items that are eligible to be salary packaged as in-house benefits include:
- wine and cheese from the CSU winery;
- transport services;
- private function catering services;
- private printery services; and
- purchases from CSU establishments such as the mini-mart and staff club.
- CSU courses that are not work related, e.g. short courses
Does Salary Packaging affect Super or other entitlements?
Existing employee entitlements such as paid sick leave, annual leave, long service leave, maternity and adoption leave, annual leave loading and any other applicable allowances, will not be affected by salary packaging. All forms of paid leave, overtime, compulsory superannuation contributions, and employer superannuation contributions will continue to be calculated on an employee's ordinary rate of salary.
The University shall maintain its employer superannuation contributions and arrangements.
An employee who takes unpaid or reduced paid leave from the University shall be responsible for maintaining, adjusting or terminating their voluntary salary packaging arrangements. An employee shall be responsible for the maintenance of his or her compulsory superannuation contributions at the appropriate rate.