Salary Packaging Services for Employees
SALARY PACKAGING SERVICES FOR EMPLOYEES TERMS & CONDITIONS
This document sets out Terms & Conditions upon which Salary Packaging Solutions Pty Ltd (trading as "Advantage Salary Packaging") provides salary package services to you.
1. Definitions and Interpretation
'Business Day' means a weekday on which banks are open for business in Melbourne, Australia.
'Salary Package' refers to your salary package comprised of a cash component and other benefits selected by you and administered by Advantage in accordance with these Terms & Conditions.
'Salary Packaging Services' (or 'Services') are the salary packaging services provided to you by Advantage (and third party providers) and include:
a. provision of information to you to assist you in selecting a Salary Package;
b. information as to how your Salary Package will be administered;
c. administration of your Salary Package;
d. payment of benefits selected by you that form part of your Salary Package;
e. reporting to you on your Salary Package; and
f. additional services as determined by Advantage from time to time and notified on its website or as otherwise approved by your employer.
Only benefits identified in an approved list of benefits notified by Advantage on its website as part of the Services and updated from time to time or benefits otherwise approved by your employer may be salary packaged through Advantage.
The Services do not include the provision of financial advice to you. Advantage is not (and will not be) your agent, or otherwise act in a trustee or fiduciary capacity on your behalf.
Upon change in any applicable law, if it is determined by Advantage that the provision of the Services, or any relevant Service, is no longer compliant with any applicable law, Advantage may discontinue administering the relevant Service or alter the way it is being administered to comply with the relevant laws.
The Services come with guarantees under the Australian Consumer Law that cannot be excluded or restricted by these Terms & Conditions and any clause that excludes or restricts your rights under those guarantees is subject to the Australian Consumer Law.
2. Acceptance and Term
a. The Services will be provided to you from the date when your completed application form is received by Advantage and until such time as a Service is terminated in accordance with these Terms & Conditions and the Agreement for the Provision of Salary Packaging Services with your employer ('Employer Agreement'). By completing the application form you are indicating your agreement with and understanding of these Terms & Conditions.
b. The application form may be completed:
i. in writing by obtaining the form from Advantage's website or in hard copy from other authorised sources; or
ii. electronically by completing the form on Advantage's website; or
iii. verbally, over the telephone with the Advantage service centre.
c. The information provided by you in the application form must be true, complete and accurate. This includes, without limitation, your current salary and wages information. You must inform Advantage immediately of any changes to the information provided by you in the application form.
d. You acknowledge that certain changes to your salary packaging arrangements, as instructed by you, can be made over the telephone without the requirement for the change to be effected or confirmed in writing.
e. Advantage or your employer may request re-substantiation of the benefits that are part of your existing salary packaging arrangement. You must keep records of the information provided as part of your application for salary packaging with Advantage or a claim made pursuant to your Salary Package for five years from the date when you lodge the application or claim.
f. Where your employer has undertaken to transition from an existing packaging arrangement and has provided the relevant information to Advantage on transition, an application form may not be required.
3. Benefit providers
a. Advantage engages various third party providers to be available to provide the Services to you as part of your salary packaging arrangement. Where Advantage has a panel of providers, you must select such a provider from the panel.
b. Advantage may change the list of third party providers from time to time and will provide notification of any such changes on its website. Where your selected provider is removed from the list, Advantage may, at its election, substitute such provider with a suitable alternate provider to provide the relevant product or service to you.
c. When the amount received from your salary is less than the payments Advantage must make on your behalf to third parties, some of the payments to those third parties will remain outstanding. When Advantage receives further payments from your salary, any outstanding payments to third parties will be prioritised before reimbursements are made to you.
d. Where you have a previous existing arrangement with a provider not included in Advantage's list of providers, you may be required to transfer your provider to one of the providers on the panel before you can commence your salary packaging arrangements with Advantage.
4. Salary Packaging Bank Accounts
a. Upon acceptance of these Terms & Conditions, you acknowledge that your employer will pay that part of your Salary Package as is necessary for Advantage to administer the Services to you into a bank account ('Salary Packaging Bank Account'). You expressly acknowledge that any funds held in the Salary Packaging Bank Account are held on behalf of your employer (and are not held on your behalf or on trust for you.)
b. Advantage will have an authority to transact on the money held in the Salary Packaging Bank Account for the purposes of administering the Services to you.
c. You will not be permitted to make any direct debit transactions against the Salary Packaging Bank Account. Monies held in the Salary Packaging Bank Account do not accrue interest to you and Advantage may retain any interest that does accrue.
d. Monies deducted from your salary and held in the Salary Packaging Bank Account can be paid to you and taxed at any time of the year in accordance with your employer's salary packaging policy.
5. Fees for administration of Services
a. As determined by your employer, either you or your employer may be responsible for fees payable to Advantage for administration of the Services.
b. Where you are responsible for paying the fees:
i. you acknowledge that Advantage may increase the fees in accordance with the Employer Agreement. If you do not agree to any increase in fees, you may terminate the Services by giving one month's notice in writing to Advantage.
ii. you authorise and consent to Advantage deducting the fees from monies held in the Salary Packaging Bank Account in priority to other payments.
c. Subject to your employer's policy, if you terminate the Services throughout the year, which, for the purposes of the Services, is a Fringe Benefits Tax (FBT) year from 1 April to 31 March, the full annual administration fee is payable to Advantage for the Services terminated.
d. Subject to your employer's salary packaging policy, where you have transferred from one employer to another and this transfer allows an additional amount of living expenses threshold to be packaged, you will be charged the full annual fee in each employer entity irrespective of whether you choose to utilise the extra threshold allowed or limit your packaging to a lesser amount than available. For the purposes of this clause, living expenses threshold refers to the additional tax concessions available to employees of Public Hospitals, Charities, Aged Care Homes and Medical Research Institutes in respect of living expenses as prescribed by the Australian Taxation Office from time to time. This is not available to the general work population.
e. An employer's salary packaging policy may require that the balance attributable to an employee in the Salary Packaging Bank Account cannot exceed a certain amount. If your employer has such a policy, any funds in excess of that maximum balance will be returned to your employer to be paid as salaries and wages and taxed at any time of the year in accordance with your employer's salary packaging policy.
6. Account administration
a. You agree to review the confirmation report or any communications provided to you by Advantage by email, post or on Advantage's website and to notify Advantage of any errors or changes required, including, but not limited to, packaging amounts being deducted, scheduled payments, bank account details and the accuracy of creditors and data regarding vehicles.
b. If you are eligible to make capped benefits claims, Advantage does not guarantee that any such claims lodged after the date notified by Advantage as a deadline for lodgement in any FBT year will be processed prior to the end of that FBT year. 'FBT Year' is a period from 1 April - 31 March.
c. Where you request an amount from your salary to be deducted for a specific benefit in a pay period and this amount exceeds your actual allowable base salary for that pay period, no deduction of funds will then be guaranteed and Advantage will not be liable or responsible for any associated loss (including but not limited to any tax or interest loss).
d. To the extent permitted by law including the Australian Consumer Law, Advantage will bear no loss or any responsibility resulting from any data entry errors where a confirmation report was issued and you were given an opportunity to identify and correct such errors unless you can demonstrate that you have made reasonable efforts to make Advantage aware of such errors.
e. In relation to the Superannuation Concessional Contributions Caps ('SCCC') as may be set by the Australian Taxation Office from time to time, Advantage will bear no loss or any responsibility resulting from any breach of the requirements related to those SCCCs or from any contributions made in excess of the SCCCs though your Salary Package. You agree to monitor the requirements for, and values of, the applicable SCCCs and make adjustments to your Salary Package where required to comply with those.
f. You must notify Advantage of any changes to bank account details immediately. Failure to do so will result in any cost associated with recovering or redirecting payments, as well as any bank fees, interest or charges that result, being charged to you.
g. If funds are not received for four consecutive pay periods, your Advantage account may be automatically ceased. If you are taking any type of leave without pay, you must notify Advantage as soon as practicable, and in any event, before taking leave, so we can make required adjustments to your account.
h. Where you send a claim for reimbursement of expenses, you must keep a copy of the claim and any supporting documents you submit. Advantage will not return any original documentation to claimants, including rejected claims. If you request Advantage to return a copy of any transaction submitted, the expense in performing this request will be borne by you. Advantage will inform you of any such expense prior to any request being performed. You must inform Advantage of any inaccuracy in relation to a claim processed within 2 months of submission of any such claim.
7. Packaging vehicles
Where your employer offers the Novated Lease Vehicle benefit, and you have elected to salary package a Novated Lease Vehicle benefit with Smartleasing (a registered trading name of Smartsalary Pty Ltd), you agree and acknowledge that you have read and agree to the terms and conditions applicable to your novated lease with Smartleasing at smartleasing.com.au/terms-and-conditions.
8. Excess Usage
a. Where your account is overdrawn for any reason you authorise Advantage, with notice to you, to:
i. schedule additional deductions from your salary for the specific purpose of crediting your salary packaging account by the overdrawn amount; and/or
ii. cancel other salary packaging payments due and payable and use the funds earmarked for these payments to cover the overdrawn amount; and/or
iii. schedule additional deductions from your salary to cover any estimated future spend (as calculated at Advantage's discretion) to prevent future overdrawn amounts; and/or
iv. recover the overdrawn amount directly from you.
b. If Advantage uses salary packaging funds deducted for the purpose of meeting your lease payment obligations to cover an overdrawn amount, you may be required to make out of package lease payments directly to your lease financier (that is, not through your salary packaging arrangements), whilst your lease deductions are used to repay the debt.
c. Where Advantage is unable to recover the balance of an excess amount in a timely manner in accordance with the methods set out in section 8(a) or (b), Advantage may, at its sole discretion:
i. subject to your Employer Agreement, request your employer to fund the balance; or,
ii. engage a collection agency to recover the debt from you.
d. Generally and subject to applicable legislation, Advantage is legally entitled to recover amounts with respect to any negative balance or any other amounts owing by you to Advantage in the period of 6 years of the debt becoming due (unless the collection of the debt is governed by the laws of the Northern Territory, where the period of 3 years generally applies).
e. All reasonable transaction fees and other costs (including, but not limited to, external debt collection agency fees) incurred by Advantage in respect of the recovery will be payable by you.
f. You must only nominate a reimbursement account which you own or over which you have the authority to permit Advantage to direct debit if you exceed the balance attributable to you in the Salary Packaging Bank Account or on any salary packaging card that you have utilised, such as a Westpac Meal Entertainment Card or a Westpac Everyday Purchases Card, as may be applicable.
9. Salary Packaging Loans
a. Where it is necessary to pay a reimbursement amount to you and there is insufficient balance available in your salary packaging account Advantage may, at its discretion, elect to:
i. loan money to your employer in order to fund your salary packaging account up to the required level; or
ii. pay the reimbursement even though it will push your salary packaging account balance below zero - i.e. to a debit balance.
b. In both of the above cases it is noted that the primary liability to re-pay the loaned funds and/or re-fund your salary packaging account will fall on your employer. However it is a requirement of your salary packaging agreement that you fully compensate your employer within a reasonable timeframe by sacrificing additional pre-tax salary amounts.
c. Any pre-tax salary packaging amounts deducted under the authority at 9(b) will be immediately allocated to your salary packaging account or as repayment of the amounts owing to Advantage.
10. Fringe Benefits Tax
a. You agree to compensate Advantage and/or your employer, either by way of additional pre- tax salary deduction or direct payment, for any FBT amounts payable in relation to your salary packaging activities.
b. Advantage will perform, on an annual basis, a reconciliation between the collected FBT and the calculated liability to pay FBT for each benefit type provided to you and will report such results of this reconciliation to your employer.
c. You are responsible for any outstanding amounts of FBT. FBT liabilities will be payable by you through salary deductions, direct credit, or a direct debit arrangement. If you disagree with the amount of FBT payable in a relevant FBT year, you must notify Advantage within 21 days of the relevant FBT year.
d. It is your responsibility to manage your FBT and maintain your own records of start and end kilometres and or log book for your vehicle. Advantage will provide you with reports concerning vehicle usage and potential FBT liabilities resulting from your driving patterns; however, these reports are issued as a guide only.
e. If you fail to advise Advantage that you are ceasing employment and continue to use your fuel card after termination of employment any such costs will be subject to FBT, and the expenses and FBT will be directly recovered from you.
f. Nothing in this clause 10 makes you liable for any FBT amounts payable due to a breach of these Terms & Conditions by, or the negligence of, Advantage.
11. Cessation of benefits or Salary Package
a. If you would like to cease packaging a benefit or are ceasing employment with your employer, you must notify Advantage of such cessation with at least 10 Business Days notice prior to the change.
b. On cessation of your employment, you will not be entitled to receive final termination pay from your employer until Advantage has provided a reconciliation of your Salary Package to your employer.
c. Where you are ceasing the package of a Novated Lease Vehicle benefit with Smartleasing, up to 6 weeks is required for Smartleasing to provide the reconciliation of your salary package. If you have an outstanding balance on a Smartleasing issued fuel card, the amount will be recovered from amounts attributable to you in the Salary Packaging Bank Account. If you still owe a debt after the balance of amounts attributable to you in the Salary Packaging Bank Account has been applied, you will be obliged to pay the outstanding balance and FBT owing.
d. You remain liable to your employer for any outstanding amount owed by you on cessation of your Salary Package benefit or at the end of any FBT year.
e. On cessation of your employment or your Salary Package or benefit for any reason, Advantage may immediately cease provision of the Services or benefit to you. You will be fully responsible to meet any outstanding commitments from the date of such cessation.
f. If you in any way misuse a benefit or use it in a manner which is fraudulent or which may constitute a breach of FBT laws and regulations, or you commit a material breach of these Terms & Conditions or become bankrupt, Advantage may immediately cease provision of the Service to you by providing you with notice. If you fail to comply with these Terms & Conditions in any other way, Advantage may cease provision of the Service to you on at least 10 Business Days' notice.
g. Overpayment of GST on contributions will not be refunded in the event of Salary Package or benefit termination. At the end of an FBT year, Salary Package, benefit termination or otherwise, if it is calculated that an employee has made an after-tax contribution in excess of what is required to reduce the FBT liability for their Salary Package to nil, that excess contribution is not refundable to the Employee.
12. Suspension for non payment
If you or your employer fails to make any payment due to Advantage, Advantage may, with notice to you, suspend the Services to which that overdue payment relates unless and until all such overdue payments are made to Advantage.
You acknowledge and agree that:
a. Advantage (and its affiliates) may receive commissions, rebates or other payments or benefits from third party providers of goods and services who provide such goods and services to you as part of your Salary Package, and as a result of Smartgroup receiving these benefits, you should not expect that any advice or recommendations given by Advantage will be disinterested, nor will Advantage disclose any conflicts of interest to you;
b. Advantage is not required to make payments for benefits forming part of your Salary Package or otherwise if there are insufficient funds to make such payments in the Salary Packaging Bank Account and will not be liable for any penalties, interest or other charges payable due to any delay in payment resulting from insufficiency of funds in the Salary Packaging Bank Account;
c. all information provided by you to Advantage is true and accurate and where any incorrect bank account information is provided, any bank fees and administration costs resulting from that error will be deducted from amounts attributable to you in the Salary Packaging Bank Account;
d. you have read the rules for each benefit provided by Advantage as part of the Services from time to time and will abide by those rules;
e. these Terms & Conditions are updated from time to time by Advantage and by continuing to use the Services you are deemed to accept these changes and you are bound by the most current version of the Terms & Conditions published on Advantage's website. If you disagree with any such changes to the Terms & Conditions, you can elect to discontinue the provision of the Services to you and terms of the Terms & Conditions applicable immediately prior to the cancellation by you of the Services will apply to the relationship between you and Advantage;
14. Authorisation to Advantage
You authorise Advantage to:
a. in its discretion, change the cash and other components of your Salary Package by providing you with notice but without specific authorisation from you so as to ensure that the Salary Package benefits selected and notified by you to Advantage are able to be provided and that any of your contribution to the taxable value of a benefit can be satisfied;
b. adjust salary deductions in accordance with benefits packaged by direct interface with your
employer's payroll and with notice to you;
c. direct your employer to pay additional monies from your salary into the Salary Packaging Bank Account by providing you with notice but without specific authorisation by you if such additional sums are required in order to pay for the benefits making up your Salary Package; and
d. record any telephone conversation(s) between you and Advantage.
15. Governing law and jurisdiction
The laws of the State of Victoria shall govern these Terms & Conditions and the parties submit to the non-exclusive jurisdiction of the courts of Victoria and the Federal Court of Australia.
Version date: 11 December 2018