education.vic.gov.au

Overview

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 (for example, motor vehicles) or those items that are exempt from FBT (for example, additional superannuation, professional membership fees, notebook computers).

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

The elements of the salary package are salary, taxation and optional benefits includes:

  • additional superannuation
  • a novated lease on an approved motor vehicle
  • portable electronic devices
  • professional memberships and subscriptions
  • home office and other work-related expenses
  • financial advice
  • disability/income protection
  • self-education expenses
  • administration cost.

The department has outsourced the administration of salary packaging arrangements for teaching service employees to Maxxia Pty Ltd effective 1 November 2022.

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.

School council employees may also salary package using Maxxia, however, superannuation is the only packaging benefit available.

For access to department specific information, employees should visit MaxxiaExternal Link .

Relevant legislation

Department overview of policy and guidance for Salary Packaging – teaching service

Reviewed 04 March 2024

Policy last updated

2 November 2022

Scope

  • Schools

Contact

People Division

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