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education.vic.gov.au

Human resources

Salary Packaging — Teaching Service

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:

  • 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 or 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

School Council employees may also salary package using Smartsalary Pty Ltd however Superannuation is the only packaging benefit available.

Employees considering commencing salary packaging arrangements (including School Council employees) should visit Smartsalary for further information.  

Relevant legislation

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

Reviewed 28 April 2021

Policy last updated

15 June 2020

Scope

  • Schools

Contact

People Division

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