Salary Sacrifice

Salary sacrifice (sometimes referred to as salary packaging) allows an employee to receive part of their salary in the form of benefits which reduces PAYG tax. The University pays for particular benefits on your behalf from your total gross wage, rather than you paying for the benefits from your nett wage.

Listed below are some frequently asked questions. For more detailed information, please refer to the Salary Packaging Guide (PDF, 447.15 KB). (opens in a new window)

What can I salary sacrifice?

Approved salary sacrifice options include:

Novated Motor Vehicle Leases

Western Sydney University staff can use the services of sgfleet to manage the Salary Packaging program for Novated Motor Vehicle Leases.

sgfleet provides a one stop shop for your total Salary Packaging and Novated Leasing needs and have dedicated Account Managers to assist you throughout the entire process.

For more information visit the staff benefits webpage

Frequently Asked Questions

Who is eligible to salary sacrifice?

Academic or Professional Staff who are employed on a continuing (full time or part time) or fixed term (full time or part time) contract basis are eligible to participate in the salary sacrificing scheme. Employees who are employed on a casual basis are eligible to sacrifice superannuation only.

What's the benefit of salary sacrificing?

Benefits vary for each employee, as they are dependent on one's personal and financial circumstance. The salary sacrificing scheme allows an eligible employee the option of structuring their total remuneration as a combination of cash and/or approved benefits in order to meet their individual needs and financial circumstances. It is highly recommended that the employee obtain financial advice from an accredited financial advisor before entering into a salary sacrificing arrangement.

How much can I salary sacrifice?

The quantum of salary that eligible employees can salary package, in respect of current approved options is up to 100% of their gross salary. The University recommends you seek independant financial advice on all salary sacrifice options.

Can more than 1 option be salary sacrificed?

Yes, more than one option can be salary sacrificed.

How will my leave entitlements be calculated?

Leave entitlements will continue to be calculated on your gross pre-packaged salary. For example, if an employee's gross salary prior to salary sacrificing was $47,614 p.a., then the leave entitlement is based on this rate.

Will my superannuation contributions be affected if I elect to participate in the salary sacrificing scheme?

No. Superannuation is calculated on the award rate prior to salary sacrificing. Salary sacrifice contributions are now reportable to the ATO, so this may have tax implications.

How will overtime and Union fees be calculated?

Like leave entitlements, overtime and union fees are calculated on the award rate prior to salary sacrificing.

Is there an administrative fee to participate?

There currently is no administrative fee charge for approved salary sacrifice items such as childcare, superannuation, car parking or laptop/notebook computers. The novated motor vehicle lease payments are subject to an administrative fee of $5.50 per fortnight.

The fee, which incurs GST covers salaries, establishment costs, maintenance of employee's records, payroll adjustments, employee correspondence, maintenance of web site, system requirements and correspondence with suppliers.

Once I elect to participate in the salary sacrificing scheme, am I permanently committed to it?

A salary sacrifice will automatically continue on a year to year basis unless a predetermined cease date was arranged, for example lap top computers which can be sacrificed over a 1 year period.

Alternatively, a participating employee can terminate their salary sacrificing arrangements by giving at least 4 weeks notice, in writing, to the Executive Director, Human Resources.

What happens to my salary sacrificing if I was to cease continuing/fixed term employment with Western Sydney University?

Your salary sacrificing arrangements will automatically cease on the last day of duty with the University. A reconciliation of your sacrificed items is calculated and any outstanding payments to meet salary sacrificing arrangements (excluding novated motor vehicle leasing) will be deducted from the employee's final salary and/or leave entitlements.

If you are salary sacrificing for a novated lease vehicle, the novation ceases on your last day of duty with the University and the original agreement between the employee and the Fleet Management company is reinstated. The employee is at all times responsible for financial obligations and care of the novated vehicle and therefore immediately becomes responsible for all lease payments. Your signed application form for a Novated Lease recognises this in the declaration.