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Salary Sacrifice into Superannuation

You are advised to seek independent financial advice before you proceed on this matter.

The Australian Tax Office requirement for an effective salary sacrifice arrangement must satisfy the following:

An arrangement should be entered into before you perform the work

To be an effective salary sacrifice arrangement, the arrangement must be prospective. That is, the arrangement must be in relation to your future earnings rather than any salary, wages or entitlements that you have already earned. For example, an effective salary sacrifice arrangement cannot include annual or long service leave you have accrued before entering into the arrangement.

There must be an agreement between Deakin and you

For an effective salary sacrifice agreement you must have completed a Salary Sacrifice agreement. Deakin will not action any request to salary sacrifice performance bonuses or leave entitlements unless an agreement is currently in place.

Sacrificed salary must be permanently foregone

The sacrificed salary must be permanently forgone for the period of the arrangement. When salary is sacrificed into superannuation the contributions are preserved in the fund or retirement savings account and cannot be accessed by you until you satisfy a condition of release such as attaining your preservation age.

To salary sacrifice complete the Salary Sacrifice form (PDF, 176.3 KB) .

Casual staff must also complete the Casual Staff Member Pre Tax Contributions form (DOC, 79.0 KB) .

Email your completed forms to hrd-superannuation@deakin.edu.au.

Future entitlements agreement

A staff member must complete and sign a Salary Sacrifice - Future Entitlements into Superannuation Agreement (DOC, 63.5 KB) and return to Human Resources Division (HRD). This agreement will satisfy the ATO requirement mentioned above and will remain in place for the term of employment. Note that this is an agreement only and will not action any salary sacrifice payments.

Work Test - For those aged 65 and over

The Federal Government's 'work test' requires you to be gainfully employed on at least a part-time basis, during the financial year in which certain types of super contributions, including salary sacrifice contributions, are made.

Specifically, in order to meet the work test, you must have worked at least 40 hours in a period of not more than 30 consecutive days in the financial year in which the contribution is made.

A work test declaration (PDF, 90.8 KB) must be completed prior to entering into any salary sacrifice arrangement. Also a new declaration must be completed for each future financial year.

If you do not meet this requirement you cannot make any personal contributions to superannuation, including salary sacrifice contributions.

Procedures

Future entitlements

Bonus

An Application to Salary Sacrifice Performance Bonus Payments Into Superannuation (DOC, 64.0 KB) form must be completed prior to the payment of a bonus payment. A form is required for each and every future bonus payment that may be paid. Note: This application is void unless a Future entitlement agreement is currently in place.

Leave Accrual

Any leave entitlements (annual leave and long service leave) that have accrued effective from the agreement date may be salary sacrificed at the termination of employment. A written request is required prior to termination. Note: This application is void unless a Future entitlement agreement is currently in place.

Email your completed forms to hrd-superannuation@deakin.edu.au.


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