Before you begin
You are strongly advised to get independent financial advice before you sign a salary packaging agreement. The Information for Financial Advisors page has been developed to assist financial advisors.
SalaryPackagingPLUS cannot give financial advice or personal tax advice. They can only advise on how to participate in the scheme and what the benefits are.
Income statements (group certificates)
Fringe benefit tax items such as salary packaging are reported on income statements for amounts over $2,000 and are shown as a reportable fringe benefit.
At the end of the financial year, your income statement will show your gross salary as your award salary plus overtime and allowances less your benefit items, the administration fee and NSW Health’s share of the tax saving.
Your tax for the year and the basic Medicare Levy are calculated on this reduced gross salary, plus or minus any other non-NSW Health items on your tax return.
Your yearly income statement will also include a 'grossed-up' reportable fringe benefits amount. This will equate to the cost of your benefit items factored up by a rate provided by the Australian Taxation Office, currently 1.8868.
If you package to the full $9,009 in a fringe benefit year, this will show as a reportable fringe benefit of $16,998.
Please note it is your responsibility to retain original documents for at least five years in accordance with current taxation laws.
Other circumstances may affect salary packaging
The following things will affect your salary packaging:
- leave without pay
- annual leave and long service leave paid in advance (LSL on half pay)
- maternity leave
- worker’s compensation
- change in hours
- change in pay cycles
- external secondments.
If any of the above occurs, it is your responsibility to notify the SalaryPackagingPLUS team so appropriate changes to your package can be made.
Also, if you receive a salary increase during the year, either as an award increase, higher duties allowance, routine incremental advancement or from an appointment to a more senior position, the associated additional salary will not be included in your salary package arrangement until the next packaging year.
Reimbursement excess and package continuation
There is an option to continue salary packaging after the current FBT year by carrying over an excess amount. The evidence must total $9,009 or more for future package years. Before the start of the new FBT year you will receive a letter outlining your options. If there is sufficient evidence, it will be automatically renewed. You can also stop your package at this time.
HELP repayments and salary packaging
Higher Education Loan Programme (HELP) repayments are calculated based on your HELP Repayment Income (HRI) which is your taxable income plus:
- reportable fringe benefits amount (RFBA)
- reportable employer superannuation contributions
- total net investment loss (which includes net rental losses)
- exempt foreign employment income.
Salary packaging reduces your taxable income and hence your HRI. However, the grossed up value of certain packaged benefits may be included in your RFBA which could therefore increase your HRI.
Child support payments and salary packaging
Child support payments are calculated by reference to adjusted taxable income (ATI) which is your taxable income plus:
- reportable employer superannuation contributions
- deductible personal superannuation contributions
- reportable fringe benefits amount (RFBA)
- certain tax-free government pensions or benefits received
- target foreign income
- net financial investment loss
- net rental property loss
- less any child support payments the employee provided to another person.
Given that salary packaging affects an employee’s taxable income and adjusted fringe benefits amount, the employee’s child support payments will be affected.
If you pay/receive child support or have HECS/HELP, it is strongly recommended that you consult a financial adviser.
Family assistance payments and salary packaging
If you receive Family Tax Benefit part A or B, there should be no change in the benefit you receive from Centrelink. However, you must advise Centrelink that a portion of your pay will be tax free and you will have an exempt reportable fringe benefit. For more information, contact SalaryPackagingPLUS.
Medicare levy surcharge
All taxpayers currently pay a 2.0% Medicare Levy which is deducted with their tax. Taxpayers who do not have any private health insurance are subject to a Medicare Levy Surcharge (MLS), the table below illustrates the current MLS:
| Single Income | Family Income | MLS |
|---|---|---|
| <$90,000 | <$180,000 | 0.00% |
| $90,001 - $105,000 | $180,001 - $210,000 | 1% |
| $105,001 - $140,000 | $210,000 - $280,000 | 1.25% |
| >$140,001 | >$280,000 | 1.5% |
After salary packaging, the amount the MLS is calculated on is the sum of your taxable income plus your total reportable fringe benefits. If this amount subjects you to the MLS, you will be advised of any surcharge payable when you receive your notice of assessment from the Australian Taxation Office.
Board and lodging
Employees who pay for board and lodging do so at a commercial rate. This is considered a fringe benefit, and will impact on the amount you can package. For more information speak to a financial advisor.
Employee Benefits overview
Further information
Book an appointment or contact the SalaryPackagingPLUS team:
- Email: nswhealth@salarypackagingplus.com.au
- Phone: 1300 402 523 (Monday to Friday 8am-8pm)
- Website: salarypackagingplus.com.au/nswhealth