Salary Packaging
Public Service Staff
In keeping with modern remuneration practices, Departmental staff 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 (eg. motor vehicle) or those items that are exempt from FBT (eg. additional superannuation, professional membership fees, laptop computers).
All costs associated with salary packaging, including reasonable administrative costs, are to be met from the salary of the participating staff member.
Staff members considering salary packaging are encouraged to consult with their financial adviser in the first instance.
Participation in salary packaging is voluntary. Staff members 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:
- additional superannuation,
- a novated lease of an approved motor vehicle,
- private health insurance,
- mobile telephones,
- computers (note book and laptop only),
- membership fees and subscriptions to professional associations,
- home office expenses,
- financial counselling fees,
- disability/income protection insurance premiums,
- self education expenses;
- administration cost.
Novated lease of an approved motor vehicle
SG Fleet is the sole provider appointed to provide the novated car lease facility for VPS staff. For further information refer to the Victorian Government Vehicle Policies and link to SMB available under Other Resources below.
Additional superannuation
VPS staff who wish to salary package additional superannuation should contact Corporate HR Services.
Other salary packaging arrangements
The Department has outsourced the administration of all other salary packaging arrangements to SmartSalary Pty Ltd.
The major functions to be performed by the salary packaging administrator are:
- provision of a Salary Package Schedule confirming the employees 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.
Staff that are considering commencing salary packaging arrangements other than superannuation or novated car leasing should visit the SmartSalary web site for detailed information. To access details specific to Department staff it will be necessary to complete the registration process on the SmartSalary web site. Once registered, access to Benefit Profiles and Salary Packaging Guide will be enabled.
Teaching Service | Public Service
Other Resources
Policy & Guidelines
- Victorian Government Vehicle Policies (http://www.vicfleet.vic.gov.au) When the site is accessed, select the link to Government Policy.
- Use of Government Vehicles by VPS Staff (Word,148k) (Updated December 2008)
Additional Information
- SG Fleet (www.sgfleet.com.au) (To access details specific to Department staff, on the SG Fleet home page click the Login icon and enter VED in the Company Login option) Contact phone no: 1800 818 487
Legislation
Related Topics