University of Tasmania, Australia

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Salary Sacrificing

UTAS Home › Human Resources › Payroll  › Salary Sacrificing

In accordance with the relevant Agreement or other industrial instrument, eligible staff may apply to receive a salary lower than that to which they are otherwise entitled, in exchange for University payment of the item(s) outlined in the Agreement or industrial instrument.

In such cases the amount of reduction in salary payable will be equal to the University payment, together with any tax payable upon such payment being made by the University to the benefit of the employee.

Please note:
  • These salary sacrifice options do not apply to casual staff.
  • There is no restriction on the amount of salary that can be sacrificed under salary sacrifice arrangements entered into by agreement with the University. Where staff wish to sacrifice a significant amount of salary, however, it is strongly recommended that they take independent financial advice before doing so.

Salary Sacrifice / Employment Flexibility Options Calculator

Prior to using this spreadsheet, staff should understand what options are accessible under their particular employment arrangement. The spreadsheet contains several options, some of which may or may not be available to all staff. The Salary Sacrifice Options page above has information in relation to who has access to the various employment flexibility and salary sacrifice options.

  • This spreadsheet is provided merely as an indicator as to the payroll processing of the various options. It does not take into account your personal circumstances and financial situation. It should not be considered to be financial advice. Some salary sacrifice options require the employee to outlay an initial purchase amount - this should be taken into account before entering into such an arrangement.
  • Staff should undertake financial advice if they are uncertain about the full impact of any arrangements on their overall financial situation
  • Open / Download the Microsoft Excel spreadsheet (MS Excel KB)

Laptop Computers

Laptop computers may be salary sacrificed where the use of the laptop computer is primarily for use in the employee''s employment. Please take a few minutes to read the details of the UTAS arrangement (PDF 231KB).

Apple iPad: The Australian Taxation Office considers the iPad and laptop computers to be different products as far as salary sacrifice arrangements are concerned. The University salary sacrifice scheme for laptop computers does not include iPads or similar tablet devices.

Prior to purchasing a laptop, the Approval for the Salary Sacrifice of a Laptop Computer (PDF 36KB) form must be completed and signed by your Head of Budget Centre. The details of your application will be assessed by the University. If it is agreed that based on the information provided, it is reasonable to conclude that the laptop is to be used primarily for use in your employment at UTAS, you will be advised that a sacrifice arrangement has been agreed and you will be provided with a Salary Sacrifice/Reimbursement form which can be used once you have purchased the laptop computer.

If you have any questions in relation to laptop salary sacrifice please call Payroll Services on 3415.

Airline Club Membership

Employees who wish to salary sacrifice Qantas Club or Virgin Blue Memberships should read the details contained in Airline Club Membership Salary Sacrifice Arrangements (PDF 70KB).

For new (or renewal of) Qantas Club Memberships please refer to Qantas Club (PDF 77KB) contact details, corprate rates and UTAS Corporate Scheme number.

For new Virgin Australia Memberships:

  • Contact Carol Connors on 3655 or email Carol.Connors@utas.edu.au with Velocity account number, and full name (as it appears on the Velocity account) so as you can be included in the Corporate Scheme.
  • You will receive an email from Virgin Australia's The Lounge for you to complete and pay for your membership

For all memberships:

The following salary sacrifice/reimbursement form needs to be completed and appropriate documentation attached for new memberships and renewal of memberships:

University Parking Fees

For more details refer to the form which is available from the Campus Services.

University Sport and Recreation Membership Fees

Membership fees for the University's Sport and Recreation Centres. Relevant forms are available from the Unigym.

Motor Vehicle Salary Packaging

Motor Vehicle Salary Packaging (novated leasing) can be arranged through an arrangement we have with LeasePlan Australia.

Workplace Giving Deductions

  • Workplace Giving Schemes are a mechanism where employees can make tax deductible donations to approved registered organisations via their pay and receive an immediate tax deduction
  • Details on the University of Tasmania's Workplace Giving Scheme (PDF 173KB)

Superannuation

Staff may opt to have their employee superannuation contribution (7 per cent of salary) to UniSuper's Defined Benefit Division or Accumulation 2 Plan paid by the University as an employer superannuation contribution. In such cases, the employees salary will be reduced by the amount necessary to pay both the superannuation contribution and the 15 per cent tax payable by the University upon making the payment as an employer superannuation contribution. For more details refer to the Salary Sacrifice for Employer Payment of Unisuper Employee Contributions (PDF 209KB) form.

Voluntary pre-tax contributions can also be made under salary sacrifice arrangements. For more details refer to the Salary Sacrifice for Voluntary pre-tax superannuation contributions to Unisuper (PDF 167KB) form.

Leave Payouts

It is not possible to receive a lump sum leave pay-out in the form of an employer superannuation contribution as opposed to receiving it as PAYG salary. (Current taxation legislation does not allow salary sacrifice of entitlements already accrued, however, the legislation does allow salary sacrifice of entitlements yet to be accrued.) However, it is possible to receive a lump sum leave payment as PAYG salary on the one hand, and salary sacrifice an equivalent amount of normal salary into superannuation on a prospective basis on the other hand. Information in relation to salary sacrificing leave pay-outs into superannuation (PDF 202KB).

Reportable Employer Superannuation Contributions

  • From 1st July 2009 Payment Summaries will include information on certain superannuation contributions paid for them by the University.
  • The most common example of such contributions will be salary sacrifice superannuation contributions.
  • Reportable Employer Superannuation Contributions will be included by the Government in the following assessments:
    1. Medicare levy surcharge threshold calculation
    2. Medicare levy surcharge (lump sum payment in arrears) tax offset
    3. all dependant tax offsets
    4. senior Australians tax offset
    5. pensioner tax offset
    6. mature age worker tax offset
    7. spouse super contributions tax offset
    8. super co-contributions
    9. deduction for personal super contributions
    10. Higher Education Loan Programme (HELP) and Student Financial Supplement Scheme (SFSS) repayments.
  • The new law also affects a range of Centrelink and Child Support benefits and obligations.
  • Further information on Reportable Employer Superannuation Contributions is available from the Australian Taxation Office.