I wish to enter into an agreement with World Vision Australia whereby I can participate in Salary Packaging.
I have read, acknowledge and accept the conditions outlined below, and I have retained a copy for my records.
Please commence deductions as per the Employee Salary Packaging Report, which is attached.
Under the terms and conditions of the Salary Packaging Policy, World Vision Australia offers employees a salary packaging option whereby remuneration is taken as cash salary and benefit items. The administration of the benefit items (i.e. salary packaging) will be at the sole discretion of World Vision Australia. The general terms and conditions of the salary packaging program are:
Benefit items to be packaged can only include those listed in the Employee Information Booklet.
The employee undertakes to advise the administration bureau (Advantage Salary Packaging P/L) of any change to their benefits packaged, employment status or salary payments which would affect their salary package arrangements.
It is the employee's responsibility to ensure they do not exceed the grossed up total of $30,000 per Fringe Benefits Tax ("FBT") year. Thus employees must not establish a salary package that will incur FBT.
The employee is liable to pay the fringe benefits tax on any benefit value in excess of the $30,000 cap. 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.
In the event that FBT inadvertently becomes payable, the cost of the payment of FBT will be deducted from the employee's salary.
Any payments made in error, or in excess of the agreed payroll deductions, shall be paid back by the employee as soon as the error or over-payment is recognised.
Upon resignation or termination of employment, reconciliation will be conducted and any balance will be paid out as salary on which income tax will be deducted. Should there be any over-expenditure on benefit items, this amount shall be deducted by the Payroll Officer from final monies due. If the final monies due to an employee are insufficient to meet the over-expenditure, the employee shall, upon demand, reimburse the Payroll Officer the outstanding amount.
A reconciliation of salary packages will take place on 1 April each year. Employees may, at that time amend their salary packages to be in line with the FBT year.
Termination of this arrangement can occur by the employee giving one month's notice (to Advantage Salary Packaging P/L) at which time the arrangements under point 7 of the Agreement will come into effect whether or not withdrawal is as a result of termination or other factors. Termination of this arrangement will be effective immediately at termination of employment.
It is accepted that World Vision Australia or Advantage Salary Packaging P/L has no liability for the employee's taxation or financial advice or any other information or advice that results from entering into this Agreement.
The cost of financial advice shall be solely the responsibility of the employee.