An employee can select to salary package additional superannuation to a complying superannuation fund. The superannuation fund must comply with both the Australian Prudential Regulatory Authority and the Australian Taxation Office requirements.

Salary sacrificed payments to a complying superannuation fund are employer payments and are therefore taxed at the current employer contributions tax rate of 15%. Payments made via salary packaging are exempt from fringe benefits tax and income tax.

From July 1, 2009 pre-tax superannuation contributions are a reportable income item for certain income tested benefits.Seek independant financial advice to confirm impact on individual arrangements.

What can be packaged?

Additional superannuation payments for you to a fund where you are an existing member.

What cannot be packaged?

Additional funds paid to a superannuation fund where the payments relate to your husband/wife/defacto.

Substantiation

Employees must provide evidence of the following

  Copy of superannuation fund membership
  Proof that the superannuation fund complies with both APRA and the ATO via an extract from the register of complying superfund.