Salary Sacrifice - Australian Customs Service

1. Definition
UNCLASSIFIED
1.1 Salary sacrifice provides a means for employees to have part of their remuneration
package paid as a non-cash benefit. This feature of employee remuneration is at the
discretion of the employee.
2. Salary sacrifice as offered by Customs and Border
Protection
2.1 Salary sacrifice is provided for in the Customs and Border Protection Service EA.
2.2 Employees not covered by the EA (for example SES officers) have salary sacrifice
provided for in their Australian Workplace Agreements (AWA) and/or Section 24
Determinations.
3. Salary sacrifice items
3.1 Currently Customs and Border Protection allows employees to salary sacrifice the
following:
• Motor vehicles
• Airline Lounge Membership
• Superannuation
3.2 Salary sacrifice of motor vehicles and airline lounge membership is available to all
employees, except 2 non-ongoing irregular and intermittent employees, subject to it
being at no additional cost to Customs and Border Protection.
3.3 Salary sacrifice of superannuation is available to all employees, subject to it being at
no additional cost to Customs and Border Protection.
3.4 If there is any additional tax payable by Customs and Border Protection, including
Fringe Benefits Tax (FBT) or any equivalent tax due to salary sacrifice arrangements,
the additional tax will be recovered from the employee.
4. What is salary for salary sacrificing purposes?
4.1 For employees covered by the EA, salary for salary sacrifice purposes is the salary
level applicable to the employee within the relevant classification grouping specified
in the EA and any allowances, shift penalties and overtime that may be payable.
Performance bonuses cannot be sacrificed.
4.2 For employees not covered by the EA, it is the salary specified in their AWA or
Section 24 Determination including any allowances that may be payable.
Performance bonuses may be sacrificed but the employee must elect to do so before
the commencement of the Performance Assessment period.
2 To salary sacrifice a vehicle or airline lounge membership, employees must be in receipt of regular fortnightly
salary payments that will cover the cost of deductions.
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