Assessing salary sacrificing/salary packaging arrangements for employment income 108-07010050

Item

Example

1

Reportable employer super contribution

Bill is claiming a Low Income Health Care Card (LIC), he advises that he is salary sacrificing an amount of $100 per fortnight to superannuation reducing his taxable gross income to $200 per fortnight. As Bill has voluntarily sacrificed $100 per fortnight to superannuation this is income for all income support payments. Bill has assessable employment income of $300 per fortnight. This is not a fringe benefit but will appear on his payment summary as a reportable employer super contribution.

2

Reportable fringe benefit

Maria is claiming Age Pension, she advises she salary packages her home and vehicle loan through her employer in an amount of $450 per fortnight reducing her taxable gross income to $1,200 per fortnight. This is a reportable fringe benefit. See Assessing fringe benefits for Social Security income test purposes.

3

Superannuation contribution - reportable fringe benefit

Jill is receiving Age Pension and she advises that she has commenced salary sacrificing to her partner's superannuation fund. As these superannuation contributions are for the benefit of her partner, they are a reportable fringe benefit. Create a DOC with details of assessment for future reference. See Assessing fringe benefits for Social Security income test purposes.