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Q/  We have an employee who is terminating soon and he wants us to pay all of his termination pay directly to super.  I don’t think this is possible, but I’m not sure why. Can you assist please? A/ Clause 21 of the ATO’s Salary Sacrifice Ruling (see link below) allows that an employee can … Read more

Under the Fair Work Act, certain amounts can be withheld from an employee’s pay providing they meet the requirements of being “permitted deductions”. This part of the law is aimed at deductions like health insurance payments, union fees and similar. Such deductions can occur where the employee has made the request in writing and the … Read more

Question Can an employee salary sacrifice their annual and/or long service leave upon termination to superannuation? Answer No. To be an effective salary-sacrifice for termination lump sum leave entitlements, a written agreement must be entered into prior to the leave accruing. For example, if an employee is to retire in one year’s time, the employee … Read more

Q/ We currently pay superannuation on our tool and fixed rate car allowances based on advice from the ATO we’ve had in the past. However, I noticed the ATO has recently changed its “Withholding from Allowances” document to include a superannuation column. It says these allowances are not superable. Can you assist with what is … Read more

Q/ Can employees salary sacrifice their cashed in leave? A/ This is quite complicated – and the practical answer is “possibly not” This is a 2 step process Step 1 – cashing in leave For most employees, cashing in annual leave is only allowed in very limited circumstances: Where the employee is covered by an … Read more