SALARY SACRIFICE FOR SA PUBLIC SECTOR EMPLOYEES

(SA Government Salary Sacrifice Arrangements - SAGSSA)

(The information provided below does not apply to members of the Medical Officer specific Salary Sacrifice Scheme.)

SALARY SACRIFICE ARRANGEMENTS COMMENCE 1st JUNE 2008

What are the major changes to current arrangements?

• A choice of three Panel Members for employees.
• A new set of fees offered by Panel Members to employees.
• Debit/credit card payments will be an approved SAGSSA benefit item.
• Annual renewal by employees no longer mandated – the term of a Salary Sacrifice Agreement may extend up to the Panel expiry date (31 May 2011).
• The Employer Charge for setting up employees’ arrangements (previously annual) will now occur only when a new Salary Sacrifice Agreement is set up.
• Simpler forms.
• Simpler process – managed by SAGSSA Panel Members.
• Employees who currently salary sacrifice need not to enter into replacement arrangements straight away – provided replacement happens on/after 1 June 2008, and no later than the expiry date of their current Salary Sacrifice Agreement.
• You will be required to sign a Financial Advice Certification Form acknowledging your responsibility to obtain independent financial advice before entering into any salary sacrifice arrangement.
• New SAGSSA features above only become available when an employee enters into a Salary Sacrifice Agreement on/after 1 June 2008.

You must first contact one of the nominees (see below) to provide you with a Starter Pack. (If you are considering salary sacrifice to a Government Superannuation Fund only, then you should contact the Fund for information).

Obtaining a Starter Pack from one of the nominees does not necessarily bind you to that nominee if you decide to subsequently enter a salary sacrifice arrangement.

Full details of conditions and benefits of salary sacrifice for SA public sector employees are contained in the Salary Sacrifice Information Pack 2008.

A Copy of the Information Pack is available by clicking here.

The May 2008 Federal Budget made changes to the FBT treatment for certain work-related items. Employees may claim the cost of these work-related items (notebook/laptop computer, business software, briefcase, electronic diary, calculator) but there will be an FBT exemption only where they are “primarily for use in the employee’s employment”. As a result, the SAGSSA will require employee and employer substantiation of this purpose, before any salary sacrifice can be approved. The FBT exemption will generally be limited to one item of each type per employee per year. The Federal Government will also deny employees depreciation deductions for these items. Contact the nominees for further information.

(updated 03 June 2008)

Nominee Contact Details

As at 1 June 2008, there are 3 approved nominees: