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Employee Salary Package Agreement - NSW Health

FORM B: Employee Salary Package Agreement

This agreement is between NSW Local Health District and the employee. The employer and the employee have agreed to undertake salary packaging on the following terms and conditions:

Cash and Non-Cash Salary

  1. For the purpose of salary packaging, salary is the employee's substantive base award salary excluding any higher duties allowances, as at the date of commencement of the salary packaging year. Any increment or other salary increase occurring during the package year is to be taken as a cash component of salary.
  2. The employee may elect to sacrifice salary up to a maximum grossed-up amount of $17,667 which is the maximum fringe benefit exemption limit.
  3. The remainder of the employee's salary will be paid as cash on the usual fortnightly basis by the employer.
  4. The employee authorises the employer to reduce the employee's cash salary by the amount of salary to be packaged. The employee further authorises the employer to disperse the packaged component of salary, including any fringe benefits tax liability, to the packaging administrator.
  5. The employee may elect to include one or more of the benefit items, provided that the total grossed-up value of the benefit items do not exceed $17,667. The employee is liable to pay the fringe benefits tax on any benefit value in excess of the $17,667 cap.
  6. The employee must pay fringe benefits tax or reimburse the employer the amount of any liability for any tax, charge, duty, or other payment payable by the employer which arises out of or is connected with this agreement including any tax, charge duty or other payment which becomes payable as a result of the amendment, introduction or coming into effect of any legislation. The employer may deduct this amount from any remuneration payable to the employee.

Duration of the Agreement

This agreement will commence on the first pay period after the processing of all the necessary documentation by both parties. Subject to any review as provided by this agreement, the agreement if executed prior to 1 April of each year shall be reviewed every 12 months on 1 April in order to comply with FBT year reporting requirements.

Disclaimer

The employee releases and hereby indemnifies the employer from all actions, claims, demands and proceedings whatsoever which the employee or any other person has or may have against the employer arising out of or in respect of or in any way connected with any advice received by the employee from the employer, or any remuneration consultant in connection with this agreement, and all costs, damages, and expenses which the employer may incur in defending or settling such actions, claims, demands and proceedings.

Review of the Agreement

Towards the end of each package year, an employee may review the components of their salary packaging agreement and vary their package items for the next package year. The employer may initiate a review of the employer's salary packaging agreement with the employee in the event of substantial change in circumstances, eg. Change in working hours from full time to part-time.

Confidentiality & General Conditions

The terms of this agreement remain confidential between the employee and the employer, and relate only to the employee's salary package. The employer is not liable for taxation or any other liabilities, judgments, penalties or outcomes suffered or incurred by the employee resulting from entering into this agreement. The employee confirms that the package benefit items selected for their salary packaging are legitimate expense items, and that payments made under the salary packaging arrangements will only be used to pay these expenses. If the employee ceases employment with the employer, this agreement will lapse.

The employee is under no obligation to participate in salary packaging. The employee may elect at any time to cease salary packaging by giving at least four weeks notice in writing. Subject to any review permitted under this agreement, the employee agrees that the terms of this agreement cannot be varied or terminated without the specific written consent of the employer.