Salary Package

Salary packaging with Selectus is only available to employees whose employer has agreed to offer it to their staff. In addition, the process of salary packaging and the taxation benefits that it provides can be difficult to understand and this might deter some people from taking advantage of their workplace entitlements.

Formally, everything that you get from your employer compromises your pay package - leave, stock, insurance, base pay, bonuses. Informally, it typically refers to just base salary paid vacation is simply lumped in with the yearly total.

I would strongly recommend against any answer other than the absolute truth. They are not asking what salary package you are now looking for. They are asking what you currently receive and that is what you need to tell them, although it is always a good idea to emphasize that money is not your only motivator. When it comes to talking money, you never want to come across as mercenary.

Employers offer a select range of benefits to their employees. It is best to contact your HR department to determine what is offered by your organisation. Generally capped limit benefits are regular living expense payments you make such as:

☛ Mortgage repayments, rent payments, personal loan repayments, council or water rates and school fees. These are the most common expenses salary packaged under the capped limit.

☛ The grossed-up value of all capped limit benefits are reported on your Payment Summary at the end of the financial year.

You may commence your salary packaging arrangement at any point throughout the year. You can also maximize your arrangement by salary packaging your annual capped limit within a shorter period of time.

Yes, you can use the Salary Options Salary Packaging Card. This is a Visa credit card you can apply for which can be used for general living expenses such as groceries, petrol and other day to day living expenses. For more information about this, you can download the Salary Packaging Card fact sheet.

You need to have thought through very carefully in your own mind both what salary package you can reasonably expect and also what the minimum is that you would be prepared to accept, assuming the job itself was suitably attractive. These are issues only you can decide but it will certainly help to have an awareness of what your 'market value' really is. This will take a little research. But that is not to say you should give a precise answer. Unless you have a firm job offer in hand, it is best to dodge the question slightly and quote a range of possibilities.

Salary Options recommends no more than 4 changes to your salary packaging arrangement each FBT year. All changes to package arrangements must be in writing using the Salary Packaging Amendment Form. Salary Options recommend that employees seek independent professional/financial advice in regard to their financial goals.

I would really need to know more about the opportunity and your whole package before I can give you and answer to that question. You may offer extra perks that my last job may not have had or vice versa. Basically, I need more information before I decide.

Salary packaging will reduce your gross salary and the grossed-up value of the reportable fringe benefits will be shown on your Payment Summary. Your gross salary and grossed-up reportable amounts will be used by the government for income assessments which may affect the following:

☛ HECS/HELP

☛ Superannuation

☛ Family benefit payments / child support

☛ Medicare levy surcharge