Salary sacrifice to superannuation Subject to the following conditions, an employee may elect with the agreement of the employer (such an agreement shall not be unreasonably withheld by the employer) to salary sacrifice any part or all of their salary (including Award or Enterprise Agreement based salary/wages) to make additional contributions to their choice of superannuation fund as outlined in Clause 25.1 above. As salary sacrifice is a complex matter, it is the employee’s responsibility to seek advice and fully understand all implications of salary sacrifice before seeking to enter into this arrangement. The application shall be in writing on the form provided by the relevant superannuation fund and shall detail the percentage of salary sacrificed. Requests for salary sacrifice to superannuation must be for a minimum of 1% of gross salary and must be in whole percentages (i.e. 1%, 2% 3% etc). The employee will need to provide a minimum of 4 weeks notice of their intention to salary sacrifice or to change/rescind their salary sacrifice arrangements. Any such arrangement shall be by mutual agreement between each individual employee and the organisation, provided that approval shall not be unreasonably withheld. Once established, an employee may change their salary sacrifice arrangements up to two times per calendar year, provided the required notice period of four (4) weeks is given.
Salary sacrifice to. Superannuation Subject to the following conditions, an employee may elect with the agreement of the employer (such an agreement shall not be unreasonably withheld by the employer) to salary sacrifice any part or all of his/her salary (including Award or Enterprise Agreement based salary/wages) to make additional contributions to their choice of superannuation fund as outlined in Clause 24.1 above.
24.2.1 As salary sacrifice is a complex matter, it is the employee’s responsibility to seek advice and fully understand all implications of salary sacrifice before seeking to enter into this arrangement.
24.2.2 The application shall be in writing on the form provided by the relevant superannuation fund and shall detail the percentage of salary sacrificed.
24.2.3 Requests for salary sacrifice to superannuation must be for a minimum of 1% of gross salary and must be in whole percentages (i.e. 1%, 2% 3% etc.).
24.2.4 A minimum of 4 weeks’ notice will need to be given by the employee of their intention to salary sacrifice or to change/rescind their salary sacrifice arrangements.
Salary sacrifice to. SUPERANNUATION
(a) Salary Sacrifice to Superannuation means the option of making additional superannuation contributions by electing to sacrifice a portion of the gross earnings (pre tax dollars). This will give the effect of reducing the taxable income by the amount for salary sacrifice.
(b) Salary sacrifice to superannuation shall be offered to employees by mutual agreement between the employee and employer.
(c) Such election must be made prior to the commencement of the period of service to which the earnings relate.
(d) One change of a sacrificed amount will be permitted in an employee's anniversary year, which is 12 months from the date of commencement of employment, without incurring an administration charge ($50). Changing from full-time to part-time or part-time to full-time employment will not be classified as a change for administration charge purposes.
(e) The amount sacrificed must not exceed any relevant superannuation guarantee contribution limit.
(f) The sacrificed portion of salary reduces the salary subject to PAYG Taxation deductions.
(g) Salary sacrifice arrangements can be cancelled by either the employer or employee at any time provided either party gives one months notice. The employer has the right to withdraw from offering salary sacrifice to employees without notice if there is any alteration to relevant Australian Taxation legislation.
(h) Contributions payable by the employer in relation to the Superannuation Guarantee Legislation shall be calculated by reference to the salary which would have applied to the employee under this Agreement in the absence of any salary sacrifice.
(i) Employers will not use any amount that is salary sacrificed by an employee to negate contributions payable under the Superannuation Guarantee Legislation.
(j) The employee shall have the portion of payable salary that is sacrificed paid as additional employer superannuation contributions into the same superannuation fund that receives the employer's SGC contributions.
(k) Nothing in this clause shall affect the right of an employer to maintain alternate arrangements with respect to salary sacrifice for employees.
