According to the Teaching Service Agreement, Teaching Staff members now have increased options to Salary Sacrifice and thereby reduce their taxable income.
As was provided previously, employees can still salary sacrifice into a complying superannuation scheme and for work-related computer software.
Additionally, and found in Clause 18 of the Teaching Service Salaries and Conditions of Employment Agreement 2014 , employees may now also salary sacrifice for the following:
Novated lease of a motor vehicle;
Remote area housing rental, housing loan interest or the costs of purchasing or building a property. (Remote area is as defined by the Australian Taxation Office.)
Before you jump …. consider the following:
- Any salary sacrifice arrangements for 1.) and 2.) above are to be administered by MAXXIA.
- Any fringe benefits tax, other tax liabilities or direct administrative costs incurred from a salary sacrifice arrangement shall be the responsibility of the employee and shall not create any liability for the employer.
- Salary for all purposes, including superannuation for employees entering into a salary sacrifice agreement, will be determined as if a salary sacrifice agreement did not exist.
- An employee may amend or withdraw a salary sacrifice arrangement at any time.
- We strongly advise you seek advice from a financial adviser or accountant before you enter into any arrangement,especially relating to 1.) and 2.) above.