Requesting to Salary Sacrifice Superannuation
It is really easy to set up a superannuation salary sacrifice. Simply use this Superannuation Salary Sacrifice Agreement form.
By doing so you can nominate a % or $ amount to sacrifice each pay run.
Note that a salary sacrifice cannot be backdated due to ATO regulations. This means that the start of your next pay cycle is the first date you may set it up for. The salary sacrifice is set up for work performed. That means that you will see your sacrifice take effect the week after it has been requested to start.
As an example. John signs an agreement on the Thursday to start salary sacrificing from the coming Monday. The pay for that week will be processed on the Thursday the week after. This means it takes two weeks from the time when John requested to start his salary sacrifice until he will see it on his payslip.
The worker acknowledges that there are Superannuation age based limits set by the Australian Taxation Office and understands the implication of exceeding these limits.
If the worker is aged between 65 and 74, any additional employer contributions (including those made under a salary sacrifice arrangement) and voluntary after-tax contributions made by the employee are subject to a work test.
To satisfy the work test, a worker must have been gainfully employed on a full or part-time basis for at least 40 hours in 30 consecutive days in the financial year.
No additional contributions can be made once the contractor turns 75.
Any super contribution made by an individual aged 74 must be received by the super fund within 28 days of the end of the month in which the individual turns 75 or it cannot be accepted. The work test also applies to spouses aged 65-69 receiving spouse contributions from their partner.
Salary Sacrifice Your ATO Approved Items
Our placed candidates may be eligible to salary package / sacrifice a range of items including superannuation and other ATO approved items.
Requesting Salary Sacrifice Products:
1. Complete the Product Salary Sacrifice Agreement form.
2. Please note that you need a scanned copy of the Tax invoice for the item (must show ABN and state ‘Tax Invoice’) to complete the form.
3. Note that external accessories of the device like a key board, mouse, covers, external hard drives or warranty etc. will not form part of salary sacrifice due to ATO regulations.
NB: We will process the salary sacrifice in a single pay. In the event the purchased item is larger than your gross income for that pay, it will be split over two pay runs.
What is salary sacrificing?
Salary sacrificing is an arrangement where employees agree to forego a component of their taxable salary, in return for specific non-cash benefits of equivalent value provided by CMG. Payments are made from the pre-tax salary, thereby reducing the taxable income.
Salary sacrifice (superannuation) is an arrangement where you can forego a portion of your normal monthly remuneration in order to allow your employer to make additional contributions to a complying superannuation fund of your choice. Because your employer makes these contributions directly to your nominated superannuation fund, there are certain tax advantages that you may enjoy. Salary sacrifice involves saving the income tax otherwise payable on the remuneration you sacrifice. However, a contributions tax will apply to any amount of employer superannuation that is paid into a superannuation fund on your behalf. The difference between the two tax rates constitutes the benefit of salary sacrifice.
Who is eligible to salary sacrifice?
All workers who have been engaged with CMG for 3 or more months, are eligible to salary sacrifice. Special eligibility criteria apply for certain items, such as laptops, Superannuation, Mobiles and airport lounge memberships.
Can I salary sacrifice retrospectively?
No, a salary sacrifice arrangement must be in place prior to receiving the benefit, therefore, you may only salary sacrifice prospectively. This means you can only salary sacrifice potential future remuneration (and not past remuneration, benefit retrospective). Request for salary sacrifice will apply from the next complete pay cycle after processing.
Can I salary sacrifice into my partner’s superannuation fund?
No, you may only salary sacrifice into an account in your name in a complying superannuation fund.
Should I salary sacrifice?
Whether or not you should participate in a salary sacrifice agreement depends on your own individual circumstances. If you are considering taking part in a salary sacrifice agreement you should strongly consider taking independent financial advice. This should allow you to make an informed decision about whether salary sacrificing will be to your advantage. You should carefully consider the full implications of entering into such an agreement.
The Chandler Macleod Group (Incorporating Chandler Macleod, Peoplebank, Leaders IT Services, Porterallen, AHS Hospitality, Vivir & Aurion) recommends that anyone who wishes to commence a salary sacrifice seek financial advice.
More Information about salary packaging? If you have further questions, please do not hesitate in contacting the CMG Shared Services Team - Call us on 1300 853 100, or email us at email@example.com.