1.0 Glossary

For consistency of interpretation, the following expressions will generally have the same meaning where used in this Guide as they do in the University's Offer to Salary Package, Motor Vehicle Agreement and other collateral agreements and documents.

Benefits
Any non cash remuneration and cash payment made or expected to be made on behalf of employees, and any cash payment made or expected to be made to employees by way of reimbursement of expenses incurred or expected to be incurred by employees.

Eligible Employee
Any employee of the University who is employed under one of the University´s enterprise bargaining agreements or an employment contract that provides for salary packaging.

Program participation is not normally (exceptions may apply) available to:

1. Casual staff
2. Expatriate staff
3. Staff wanting to package a Benefit (eg Motor Vehicle) for a period that is greater than their employment contract.

Employee Contributions
See Recipient Contributions

Flexible Remuneration
See Salary Packaging

Fringe Benefits
See Benefits

Fringe Benefits Tax (FBT)
A tax payable by the University to the Commonwealth on certain Fringe Benefits.

Offer to Salary Package
This offer formalises an employee's participation in the Program. It enables the University to provide an employee with Salary and Benefits.

"Once Only" Deduction
A deduction that is allowable in a year of income and not in any other year of income. This would exclude, for example, expenses paid two years in advance as an employee would be required to spread the deduction equally over the two year period.

"Otherwise Deductible Rule"
The taxable value of an employer provided Benefit that is reduced by the same amount as the amount an employee would have been able to claim as a personal income tax deduction had the employee paid for the Benefits.

Package
Remuneration by way of Salary and Benefits that an employee has negotiated with the University. Where an employee is remunerated by reference to more than one Salary classification, the Package is determined by reference to the pro-rated aggregate of the salaries assigned to the employee's substantive positions.

Package Commencement Date
The date an employee's Salary and Benefits commence. It is always the first day of the University pay cycle i.e. Friday

PAYG (Pay As You Go)
The system for the collection and payment of income tax. It replaces the PAYE system.

Recipient Contributions
Post-tax contributions employees make to the running costs of a packaged motor vehicle, which help off-set the Fringe Benefits Tax payable.

Reportable Fringe Benefits
The grossed up, taxable value of fringe benefits that is reported on the Payment Summary

Reimbursement
A refund of particular expenses paid by employees and claimed from their package.

Salary
Remuneration by way of regular periodical cash payments subject to PAYG tax.

Salary Package
See Package

Salary Packaging
The ability of employees to negotiate their remuneration as a mix of Salary and Benefits.

Salary Packaging Consultant or Salary Packaging Adviser
A Remuneration Planner employed by a University approved Remuneration Planning Organization.

Salary Packaging Guide
This Salary Packaging Guide and any successive versions.

Salary Sacrifice
Part of an employee's Salary set aside to cover the payment of Benefits. The components of Salary Sacrifice are:

1. The Benefits payable,
2. The FBT and GST payable, where applicable,
3. All other Government taxes, levies and/or duties, and
4. All Program administrative costs and charges;

Salary Packaging Schedule
Refers to:

1. The document setting out the Salary and Benefits to be provided to an employee and includes any new Schedule that may be substituted from time to time varying the employee's remuneration, and
2. Any other collateral agreements which are incidental to the provision of Salary and Benefits.

Tax Invoice
An invoice to support claims for input tax credits for GST included in the price of acquisitions made in the course of business. It must specify certain information to be valid.

Total Employment Cost
The University's annual budgeted cost, as determined from time to time by the University, of providing an employee's total remuneration as Salary.