Hi @wmakara
A salary sacrifice arrangement must have been in place before the entitlements were earned. For long service leave, that is the date the long service leave began accruing. If the employee hasn't taken any LSL since starting employment, then that date is the first day of employment.
For this employee, it means they cannot request their LSL be salary sacrificed.
You may want to let the employee know as an alternative option, they can make a personal super contribution then give their super fund a notice of intent to claim a deduction. The fund will send a letter of acknowledgment and they can claim the super deduction on their tax return.
You can read about effective salary sacrifice arrangements and super deductions on our website.
All replies
Hi @wmakara
A salary sacrifice arrangement must have been in place before the entitlements were earned. For long service leave, that is the date the long service leave began accruing. If the employee hasn't taken any LSL since starting employment, then that date is the first day of employment.
For this employee, it means they cannot request their LSL be salary sacrificed.
You may want to let the employee know as an alternative option, they can make a personal super contribution then give their super fund a notice of intent to claim a deduction. The fund will send a letter of acknowledgment and they can claim the super deduction on their tax return.
You can read about effective salary sacrifice arrangements and super deductions on our website.
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