EMPLOYMENT PROCEDURE
Title:
Remuneration Packages
Reference:
Clause F16
Clause F16, of the Department of Infrastructure and Transport Enterprise Agreement 2011-2014
(Enterprise Agreement) contains the Department’s conditions that apply to Remuneration
Packages.
PURPOSE
This Employment Procedure outlines the process, roles and responsibilities of departmental
employees with regard to remuneration packages.
CONTEXT
Employees of the Department may elect to have access to flexible remuneration packages,
where the:

arrangement is cost neutral to the Department (employees will meet any costs incurred
by the Department);

employee will not seek to gain any other benefit, for example, Centrelink benefits, on the
basis of a reduced take home pay due to a flexible remuneration package; and

Department is not required to endorse any packaged item as being required for
‘predominately business use’.
Remuneration packaging must also comply with relevant legislation such as the Fringe Benefits
Tax Assessment Act 1986, Income Tax Assessment Act 1997, the Financial Management and
Accountability Act 1997 and the Public Service Act 1999 (and subsequent amendments).
About Remuneration Packaging
Employees may elect to take non-monetary benefits in lieu of salary. Employees may package
up to 100% of their salary. Any remuneration packaging arrangement must be cost neutral for
the Department. All costs associated with remuneration packaging, including FBT,
superannuation contribution tax and ongoing external administration costs, are to be met by the
employee and may be included as part of an employee’s flexible remuneration package.
Employees wishing to take advantage of flexible remuneration packages should seek
independent financial advice from a registered financial advisor prior to the commencement of
their flexible remuneration package.
The Department and its service provider will not provide financial advice or advise employees of
the FBT implications of their choices or any other associated issues in relation to remuneration
packaging. It is an employee’s responsibility to seek financial advice to ensure they have a
complete understanding of the financial implications of entering into a flexible remuneration
package.
Version Dec 2012
Department of Infrastructure and Regional Development
Remuneration Packages
REMUNERATION PACKAGING FOR SUPERANNUATION AND DEPARTMENTAL CAR
PARKING ADMINISTERED THROUGH THE DEPARTMENT’S PAYROLL SYSTEM
Procedure
1.
Complete and sign an Agreement and an application form. Ensure you provide all
superannuation fund statements/details as outlined in the application form.
2.
Forward the completed Agreement and application form to the People and Performance
Branch.
3.
The forms will be checked for completeness and compliance with the Department’s policy
and forwarded to the Payroll Team for processing.
Please note that it can take up to 6 weeks to set up and process a remuneration packaging
arrangement for superannuation through the Department’s payroll system.
Fees and Charges
There are no fees or charges associated with remuneration packages for superannuation or car
parking purposes administered internally by the Department.
Items that can be packaged through the Department
Remuneration packaging to approved superannuation funds and for internal car parking are the
only items that can be administered through the Department.
For a superannuation fund to be approved, it must:

be a complying fund in accordance with the Australian Taxation Office requirements;

accept contributions fortnightly, via electronic funds transfer; and

not require the Department to join, or otherwise register, with them prior to the
superannuation fund accepting contributions from the Department.
The Department retains the discretion, as to whether or not, to commence, or continue,
remuneration packaging through the Department’s payroll system to superannuation funds.
Remuneration packaging of contributions to the Public Service Superannuation Scheme
accumulation plan (PSSap) is allowed under the PSSap rules.
Please Note: Remuneration packaging of contributions to the Public Service Superannuation
Scheme (PSS) Defined Benefits Fund and the Commonwealth Superannuation Scheme (CSS) is
not allowed under the respective scheme rules administered by ComSuper.
The rate for internal car parking is determined by the Secretary, or the Chief Operating Officer,
and may vary from time to time.
Amending a remuneration package administered by the Department
Changes to a remuneration package for superannuation can only be made twice in any financial
year unless extenuating circumstances arise and approval to vary contributions more frequently
is granted by the General Manager, People and Performance Branch.
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Department of Infrastructure and Regional Development
Remuneration Packages
REMUNERATION PACKAGING ADMINISTERED THROUGH AN APPROVED EXTERNAL
REMUNERATION PACKAGING PROVIDER
The Department will enter into an arrangement with an external remuneration provider to
enable employees to enter into a flexible remuneration package should they choose to.
The Department will not limit items that can be packaged through the external provider. Items
that may be packaged will be determined by the external provider.
The approved external provider that the Department has entered into an arrangement with is
SmartSalary. Employees can access the SmartSalary website here.
PROCEDURE
Employees are responsible for meeting all requirements imposed by the approved external
remuneration package provider. Employees will need to contact the relevant provider to discuss
what the procedures are.
The Department will not contact the external remuneration package provider on behalf of
employees.
Fees and Charges
The employee is responsible to cover any costs imposed by the external provider in setting up,
terminating and/or administering the remuneration package.
OBLIGATIONS ON SALARY
Where employees have obligations placed on their salary, for example Judgement Debits, any
flexible remuneration arrangement in place will be suspended until any such obligation on salary
has been met.
ON SEPARATION FROM INFRASTRUCTURE
Internally administered remuneration packages for superannuation purposes and/or car parking
will be ceased when an employee ceases their employment with Infrastructure.
Employees should refer to the ENTR site for the specific steps involved in terminating a package
when separating from the Department.
On separation from the Department, all remuneration packaging arrangements will be
terminated.
ROLES AND RESPONSIBILITIES
Employee’s responsibilities
The employee is responsible:

for all communications with the external remuneration packaging provider

for all costs associated with remuneration packaging

to ensure they are aware of any FBT or other tax implications; and
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Department of Infrastructure and Regional Development

Remuneration Packages
to ensure they have received financial advice prior to undertaking a remuneration
packaging arrangement.
People and Performance Branch (PPB) responsibilities
PPB is responsible for:

processing deductions from employee’s salary on advice from the external remuneration
packaging provider; and

processing deductions from employee’s salary on advice from the employee in relation to
remuneration packaging managed through the Department’s payroll system
DEFINITIONS
Flexible remuneration packages are arrangements between the employer and the employee,
where the employee agrees to forego part of their future entitlement to salary, or wages, in
return for the employer providing benefits of a similar cost to the employee and must be cost
neutral for the Department.
Fringe Benefits Tax (FBT) is tax payable on a non-salary benefit provided to an employee. Under
salary sacrificing the employee agrees to meet the cost of FBT.
Salary Sacrificing Deed is an agreement between the Department and the employee outlining
the terms and conditions under which the package will be administered by the Department.
Salary Sacrificing Agreement is an agreement between the Department and the employee
outlining the terms and conditions under which the remuneration packaging for salary sacrificing
of superannuation will be administered by the Department.
Departmentally Administered Remuneration Packages for superannuation and car parking
purposes is a remuneration package arranged directly through the Department’s payroll without
the use of a third party provider.
RELATED PUBLICATIONS
Fringe Benefits Tax Assessment Act 1986
Income Tax Assessment Act 1997
Financial Management and Accountability Act 1997
Public Service Act 1999.
Author:
People and Performance Branch
Authorised by: Secretary
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Version Dec 2012
Date: December 2012
Date: December 2012