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Re: Salary Packaging

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Newbie

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My employer is deducting payments from my salary each fortnight according to the salary package contract I have with Selectus (St George Bank) however my employer is holding on to the deductions for three months before passing the money on to Selectus. This makes the loans behind in payment and I am unable to place claims through because I am behind in payments through no fault of my own. My employer's excuse for holding on to the money is that it is to much work for them to process to Selectus every fortnight.

(Q1) Is my employer legally entitled to hold on to my deductions other than for the FBT component? (2) Is my employer allowed to use their discretion when they want to forward the payments to Selectus?

 

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Best answer

ATO Certified

Community Support

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Hi @Citizen,

 

Welcome to our Community!

 

A salary sacrifice is a private arrangement between an employer and employee. It's recommended to have a written arrangement in place which clearly states all the terms of the arrangement. However, there can be a verbal arrangement.

 

As there is no specific tax legislation governing salary sacrifice arrangements, you may be able to seek advice from the Fair Work Commission as they regulate employment agreements and conditions.

 

Thanks, JodieH.

 

 

1 REPLY 1

Best answer

ATO Certified

Community Support

Replies 0

Hi @Citizen,

 

Welcome to our Community!

 

A salary sacrifice is a private arrangement between an employer and employee. It's recommended to have a written arrangement in place which clearly states all the terms of the arrangement. However, there can be a verbal arrangement.

 

As there is no specific tax legislation governing salary sacrifice arrangements, you may be able to seek advice from the Fair Work Commission as they regulate employment agreements and conditions.

 

Thanks, JodieH.