I am negotiating my salary with a NFP entity that has offered me employment. It indicates salary packaging is not an option for casual employees. I want to know if ATO allows it for casuals before I negotiate with the employer further.
The are no laws that stop an NFP from providing salary packaging to casual employees. Also, there are no laws that compel an employer to offer this.
An NFP and/or their salary packaging provider might not allow packaging for casuals. The likely reason is that salary packaging arrangements are typically set up to have deductions made from regular income amounts and sometimes capped at a maximum percentage of employee income. The reduced certainty around the income of a casual employee can make salary packaging more difficult to administer.
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The are no laws that stop an NFP from providing salary packaging to casual employees. Also, there are no laws that compel an employer to offer this.
An NFP and/or their salary packaging provider might not allow packaging for casuals. The likely reason is that salary packaging arrangements are typically set up to have deductions made from regular income amounts and sometimes capped at a maximum percentage of employee income. The reduced certainty around the income of a casual employee can make salary packaging more difficult to administer.
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