HS18-211

Employee Benefits

2 Employee Benefits

Contents

Salary Packaging �������������������������������������������������������3

Employee Benefits Card �����������������������������������������6

Meal Entertainment ��������������������������������������������������7

Novated Leasing ��������������������������������������������������������9

Remote Area Housing ���������������������������������������������11

2 Employee Benefits

Contents

Who can salary package?

Permanent full-time and part-time employees, temporary employees, and employees employed under specific grants or funds for periods in excess of 12 months who work in agencies of NSW Health which meet the exemption status under the FBT Act may be eligible�

Casual employees would usually be ineligible to join the scheme given the limitations of casual engagement, however casuals may salary package at the discretion of the Salary Packaging Team based on the work patterns established�

Salary packaging is an easy way for you to increase your take home pay (net income) by paying for approved personal expenses using your gross salary (or your salary before tax is deducted). You can package up to $9,009 of your salary.

Salary packaging is recognised by the Australian Taxation Office (ATO) as a fringe benefit. Fringe benefits provided by NSW Health are not liable for Fringe Benefits Tax (FBT) because NSW Health is registered with the ATO as a Public Benevolent Institution.

Salary packaging benefits both the organisation and staff.

Salary Packaging

Employee Benefits 3

4 Employee Benefits

How much can I save?

$75,000 No salary packaging With salary packaging

Gross Income $2,884�62 2,884�62

SP Admin Fee $0�00 $2�50

Employer Share $0�00 $72�75

SP Benefit $0�00 $346�50

Taxable Income $2,884�62 $2,462�87

Tax $670�07 $524�57

Net Income $2,214�55 $1,938�30

Banked Income $2,214�55 $2,284�80

Total Tax Saved $145�50

Employee Benefit $72.75

Employer Benefit $72�75

When can I start salary packaging?

Now! The salary packaging year is the same as the fringe benefit tax year – running from 1 April to 31 March� The sooner you start, the sooner you receive the benefits�

The most popular items packaged are mortgage, rent and credit card repayments.

Salary Packaging

What can I salary package?

home mortgage

home rental

credit cards

personal loan

private health insurance

insurance premiums

school fees

private travel

child care (non-employer owned)

tertiary education fees and loans

payment to utilities/motor vehicle running costs

novated lease - (see page 9)

employee benefits card - (see page 6)

Remote area - (see page 11)

Employee Benefits 5

Salary Packaging

How do I get started?

Complete the Salary Packaging Application Form and send with copies of full statements/receipts for the item(s) you would like to claim to salary.packaging@health.nsw.gov.au

For more information and to access the Salary Packaging Application Form, visit healthshare.nsw.gov.au/salarypackaging

6 Employee Benefits

How does the card work?

Nominate the amount of your salary you’d like to package toward everyday living expenses (up to the annual limit), then fill out an application form and return it to the address provided. The amount you have nominated will be credited to your card pre-tax, in equal installments, every time you get paid. You’ll be sent a monthly card statement, listing all transactions on the card from the previous month.

How do I get started?

For more information visit healthshare.nsw.gov.au/salarypackaging

How can I use the card?

Simply select ‘credit’ when paying at a register or use the BPay option for online purchases or bill payments.

You can use the card wherever Visa or Mastercard is accepted for things such as:

groceries

petrol

restaurant and café meals

travel or booking a holiday

gas, electricity and telephone bills

council and water rates

theatre and movie tickets

clothes.

What can’t I use my card for?

mortgage and personal loan payments

credit card bill payments

withdrawing money from an ATM or when making EFTPOS transactions

setting up recurring direct debit payments

money transfers – either from another account to your card or vice versa.

You can use your Employee Benefits Card to pay for day-to-day expenses like groceries, petrol and utility bills.

Swipe your Employee Benefits Card and enjoy tax-free employee benefits on most everyday expenses.

Employee Benefits Card

You can claim food and drink purchases at restaurants or social gatherings. This is in addition to salary packaging. This includes dinner with friends and self-catered functions using pre-tax dollars.

The meals and drinks you claim – including those of your guests – do not have to be related to your employment.

How much can I claim?

You need to provide at least $500 worth of receipts for each personal or private catering meal entertainment claim. The maximum amount that can be claimed is $2,649.

Can I claim food and drinks for a party?

Having a birthday party, anniversary or wedding? You can claim all food and drinks served at the function, as long as they are itemised on a receipt.

What else can I claim with my meal?

You can claim expenses such as parking or taxi fares to and from the venue where the meal entertainment is held. You can even claim overnight accommodation.

Employee Benefits 7

Meal Entertainment

8 Employee Benefits

How do I get started?

Complete the Meal Entertainment Claim Form and send with your receipts you would like to claim to HealthShare NSW Employee Benefits�

For more information and to access the Meal Entertainment Information Kit and forms, visit healthshare�nsw�gov�au/salarypackaging

How can I access meal entertainment?

Meal entertainment can be accessed in two ways – by keeping receipts or by using a Meal Entertainment Card�

What is a meal entertainment card?

A meal entertainment Visa debit card is an alternative way you can pay for meals� Each pay, an amount that is nominated by you is deducted from your gross salary (before tax is deducted) and added to the card for you to use for meal entertainment�

We have a dedicated and experienced employee benefits team to help you.

Meal Entertainment

A novated lease is an arrangement between you, your employer and a leasing company where your employer uses your gross salary (before tax is deducted) to pay the leasing company for a car you use privately.

There are two types of novated lease – fully maintained or non-maintained.

Fully maintained

This includes the lease amount for the car as well as ongoing costs, such as services, fuel, registration, tyres, breakdown assistance and insurance�

Non-maintained

This is only the lease amount for the car and doesn’t include any other expenses�

Can I transfer my current vehicle to a novated lease?

You can transfer a vehicle you already have over to a novated lease subject to approval by the leasing company� Normally, your vehicle should be no more than eight years old at the end of the lease�

Running costs, such as servicing your car, fuel and registration can also be included in the lease amount.

Employee Benefits 9

Novated Leasing

10 Employee Benefits

How do I get started?

Visit the Employee Benefits portal at healthshare�nsw�gov�au/salarypackaging for further information and to view the approved leasing companies that you can arrange a novated lease with�

What are the potential benefits of a novated lease? fleet pricing tax advantages claiming a GST input

tax credit running costs can

be included you can choose either

a new or used vehicle�

Speak to your financial advisor and research the approved leasing companies to decide if a novated lease is right for you.

Novated Leasing

Remote area housing is designed to give you more tax savings and increase your take home pay if you live and work in a designated remote area.

How does it work?

When you package remote area housing, your fringe benefit amount is discounted by 50 percent, which means the normal $9,009 packaging limit can be extended to as much as $18,018 per year, depending on how many remote area housing expenses you have�You can claim home loan interest payments or home rental payments paid after you commence employment with NSW Health� The purchase price of your house can be claimed if you bought a house or commenced employment with NSW Health on or after 1 April 2006, whichever is later�The cost of land and construction of a new house can be claimed as long as construction commences within six months of purchasing the land�

How do I get started?

Visit the Employee Benefits portal at healthshare�nsw�gov�au/salarypackaging for more information, including the list of approved remote areas�

“There are 118 towns eligible for remote area housing benefits, including coastal towns like Bateman’s Bay and Evans Head.”

Employee Benefits 11

Remote Area Housing

Need further information?Contact our dedicated and

experienced Employee Benefits team who are here to support you�

Call (02) 8848 5111

Email salary�packaging@health�nsw�gov�au

Web www�healthshare�nsw�gov�au/salarypackaging