Finance > Salary Packaging Policy > Salary Packaging Policies and Procedures
Authorised by Finance Manager
Revised Date: 20 June 2025
General Introduction
This statement sets out the relevant terms and conditions that are to apply between Kyeema Support Services Inc. (Kyeema) and any Employee that wishes to participate in Kyeema’s salary packaging program.
The framework of the scheme is contained in this Salary Packaging Policy, the Fringe Benefits Tax legislation, any relevant EBA, contract of employment or award.
The Fringe Benefits Tax Assessment Act (1986) allows Kyeema to offer salary packaging to our employees. In order to attract and retain the best people, Kyeema makes this benefit available to its employees, however, the availability of benefits provided through this policy may be altered, enhanced or withdrawn completely by Kyeema at any time if applicable legislation or Kyeema policy changes.
In the event of amendments to any taxation legislation affecting salary packaging, Kyeema will advise employees in writing of this, and of any variation to the package for the purpose of ensuring compliance with legislation.
In the event that Kyeema ceases to attract exemption from payment of Fringe Benefits Tax, or there is an amendment to exemption level, all remuneration packaging arrangements will be reviewed and may be terminated with individual employee’s wages reverting to those specifies in the relevant EBA, contract or award.
The Kyeema salary packaging program is offered to employees on a “no cost” basis to Kyeema. That is, the cost of administration of the program is to be met by those who elect to participate in it.
What is Salary Packaging?
At Kyeema salary packaging is defined as:
An agreement with your employer where a part of an employee’s cash salary is set aside (sacrificed) for payment of other employee benefits (including for example mortgage, personal loans, rent, credit cards, superannuation etc).
The benefits to employees is a reduction in income tax payable, resulting in an increase in available disposable income.
Eligibility
Participation in Kyeema’s salary packaging program is entirely optional for all employees.
If the option to salary package is chosen, it is the responsibility of the employee to arrange the specific details with Eziway.
Restrictions
No person is to breach the $30,000 grossed-up threshold of benefits (or such other limit as determined by the Fringe Benefits Tax legislation as it is amended from time to time. Any fringe benefits tax that is or becomes payable by an employee on their packaging arrangements is and remains as obligation for them to discharge.
Failure to Comply
Failure to comply with any of these policies will result in cancellation of the employees’ salary packaging immediately. Employees, who fail to comply with these policies and have their salary packaging allowance stopped, will not be able to be back paid for benefits foregone.
It is an ATO requirement that substantiation is provided by employees to confirm salary packaging (expense payment fringe benefits) amounts paid to them or on their behalf. The substantiation must be provided prior to salary packaging payments being made.
Employee’s Responsibilities
It is the employees’ responsibility to notify Eziway of any changes that are relevant to their salary packaging. This includes loans that are paid out, payments of salary packaging to be allocated to another accounts, change in work hours etc.
It is the employees’ responsibility to ensure that expenses declared are equal or greater than the amount that is allocated to salary packaging for that period.
Related Policies, Procedures and Documents
Eziway Salary Packaging Kit HRF-69