Salary sacrifice 50% limit removed
By Rod Brown
The NSW Government has revised its policy limiting salary packaging to 50 per cent of an employee's superable or award salary.
The amount of salary which can be packaged or salary sacrificed is now unrestricted after all other post-tax commitments and deductions are taken into account.
The change will be effective from April 1, 2006 with the Public Employment Office charged with the responsibility for coordinating changes in relation to awards across the NSW public sector.
The Government's decision stems from a ruling by the Australian Tax Office in late 2005 enabling 100 per cent of salary to be "sacrificed" or "packaged".
Federation is in discussion with the respective employers for the immediate implementation of the Government's decision.
Rod Brown is a Welfare Officer.
For further information
April 2006 contents
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