University of New South Wales - Human Resources - Salary Sacrificing

From October 2005, staff may salary sacrifice the cost of an Electronic Diary or Personal Digital Assistant (PDA).

One Electronic Diary or Personal Digital Assistant (PDA) can be packaged per FBT year (1 April to 31 March and be exempt from FBT)
You can only package the hardware and basic software required to make the unit operational. Items such as keyboards, overlays, and cases cannot be packaged with your equipment.

NOTE: repairs, maintenance and software expenses may not be included with the salary package.

The cost of the Electronic Diary or Personal Digital Assistant (PDA) will form part of the staff member’s salary package thereby reducing their taxable salary. The staff member will be required to purchase the Electronic Diary or Personal Digital Assistant (PDA) and request reimbursement from their gross salary (the cost of the Electronic Diary or Personal Digital Assistant PDA must be paid in full before seeking reimbursement).

In the case of a Electronic Diary or Personal Digital Assistant (PDA) the staff member is required to purchase the Electronic Diary or Personal Digital Assistant (PDA) initially from after-tax salary, the cost of the Electronic Diary or Personal Digital Assistant (PDA) is deducted from gross salary and passed onto the staff member (in place of the vendor).

Package Cost:
1. the cost of the Electronic Diary or Personal Digital Assistant (PDA) deducted from gross salary (less GST);

Benefit:
Tax saving - by reducing taxable gross salary, the staff member pays less income tax.

Payments to the staff member of the cost of the Electronic Diary or Personal Digital Assistant (PDA) will be made in equal instalments each pay over a period of either one, three or six pay periods. The period over which payments will be made may vary depending on individual circumstances.

In order to salary package an Electronic Diary or Personal Digital Assistant (PDA) the original receipt, which clearly shows the Electronic Diary or Personal Digital Assistant (PDA) must be submitted together with a HR109A Salary Sacrificing Electronic Diary or Personal Digital Assistant (PDA) Form (RTF) or (PDF) to Human Resources. Please note that a valid tax invoice is required in order to claim the GST component of the cost of the Electronic Diary or Personal Digital Assistant (PDA) and this will be reimbursed separately, payable directly into your bank account.

As with other salary package options, you should seek independent financial advice before proceeding with any salary sacrificing arrangements.

Salary Sacrificing Electronic Diary or Personal Digital Assistant (PDA) Purchased Overseas

If you wish to salary sacrifice an Electronic Diary or Personal Digital Assistant (PDA) which you are intending to purchase overseas, you will need to declare the Electronic Diary or Personal Digital Assistant (PDA) to customs on arrival in Australia and obtain the necessary paperwork stating the value of the Electronic Diary or Personal Digital Assistant (PDA) in Australian dollars and pay any excise tax or GST due on the item. (The cost of the Electronic Diary or Personal Digital Assistant (PDA) will be calculated at the date of departure from the last overseas port.) This Customs documentation will serve as a fully paid tax invoice and can be attached to the HR110 form and submitted to Human Resources.

Salary Sacrificing Electronic Diary or Personal Digital Assistant (PDA) Purchased Second-Hand

If you wish to salary sacrifice a second-hand Electronic Diary or Personal Digital Assistant (PDA) it must be purchased from a licensed second-hand dealer. You will need to obtain an original receipt, marked ‘paid in full’, which clearly shows the Electronic Diary or Personal Digital Assistant (PDA). A valid tax invoice is required in order to claim the GST.

How can I obtain more information?

Contact your Faculty HR Consultant.

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