Salary Packaging - Teaching Service

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In keeping with modern remuneration practices, Departmental employees have the discretion to determine the mix of salary and benefits (from the approved list) that will constitute their salary package.

Generally, the benefit items that are attractive for salary packaging purposes are limited to those that receive concessional taxation treatment (e.g. motor vehicles) or those items that are exempt from FBT (e.g. additional superannuation, professional membership fees, notebook computers).

Participation in salary packaging is voluntary. Employees who choose to participate may include up to 100 per cent of their remuneration as benefits within their package.

The elements of the salary package are:

  • salary
  • taxation
  • optional benefits:
    • superannuation
    • a novated lease on an approved motor vehicle
    • payment of medical benefits insurance to a fund nominated by the employee
    • mobile telephones
    • notebook and laptop computers
    • membership fees and subscriptions to professional associations
    • home office expenses
    • financial counselling fees
    • disability/income protection insurance premiums
    • self education expenses.
    • administration cost

The Department has outsourced the administration of salary packaging arrangements for teaching service employees to Smartsalary Pty Ltd.

The major functions to be performed by the salary packaging administrator are:

  • Provision of a Salary Package Schedule confirming the employee’s salary packaging arrangements
  • Payment of the selected benefit item(s)
  • Provision of reports to employees
  • Undertaking full reconciliation of salary packages
  • Obtaining and storing benefit payment substantiation for Australian Taxation Office compliance and audit purposes
  • Communicating directly with employees in relation to salary packaging
  • Answering queries in relation to salary packaging

Employees considering commencing salary packaging arrangements should visit the Smartsalary  (https://www.smartsalary.com.au/) website for further information.  


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