Following the introduction of salary packaging for non-SES employees, a review has been made of the approved salary packaging benefits available to members of the Chief and Senior Executive Service.

The attached revised list of benefits, are broadly consistent with those now available to non-SES employees.

All new salary sacrifice arrangements for CES/SES should be confined to the attached list, which also provides some notes on each of the benefits. A revised Chapter 6 of the SES Guidelines has been posted with further details of the new arrangements. Agencies should ensure that existing packages are adjusted to remove now obsolete benefits at the earliest appropriate time (such as a contract renewal, annual review or the end of the FBT year).

C Gellatly
Director-General

Issued : Public Employment Office
Contact: Executive Services
EMail: [email protected]
Telephone no: 9228 3572 Facsimile: 9228 3577
File no: PSM/01229
Date: 29 July 2004

Circular supersedes Circular 1990-24 and relevant benefit options outlined in the attachment to Circular 1991-20 
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Superseded by C2005-29

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Approved Salary Packaging Benefits for CES/SES 2004

Motor vehicles 

• Executives have the choice to package a motor vehicle sourced from either StateFleet or through a novated lease.
• Novated lease vehicles are for 100% private use only and must be leased using the Government's approved deed of novation.
• Motor vehicles packaged on a private/business use basis must be sourced from StateFleet. In accordance with the Government's Motor Vehicle Policy, Chief Executives are responsible for determining whether a business need exists.
• Chief Executives continue to have the right to personally package two vehicles (one of which must be for 100% private use).

Superannuation 

• Executives continue to meet the employer's liability to pay the Superannuation Guarantee from the total remuneration package (TRP).
• Additional salary sacrifice is allowed.

Housing - remote areas only 

• Subject to stringent ATO rules defining a remote area.

Child care 

• Can be claimed where child care is provided by the employer on employer (or related agency) premises for the benefit of staff.
• Under certain circumstances, payments made by an employer to obtain priority of access to child care elsewhere may be exempt from FBT.

Taxi expenses

• Taxi travel must be either a single trip beginning or ending at an employee's place of work or a trip necessary because of an employee's sickness or injury.

Professional subscriptions 

• Annual subscriptions or fees paid to a professional organisation or a trade union may be included as a benefit. There must be a direct connection between the derivation of income and the need to be a member of the organisation or trade union. Initial joining or membership fees are excluded.

Education (self/professional)

The extent to which this will be permitted is a decision for each agency. It can only apply to education that has a direct connection with current work activities.

Laptops, e-organisers, briefcases, etc

• The packaging of laptops is limited to one only per annum. These items do not have to be used for work purposes to be exempt from FBT.

Benefits that are subject to full FBT and no longer available are:

• health fund cover
• off-premises child care (unless covered under the priority of access provision)
• education for children and others
• aged care
• non-business travel

There is no change in the existing right of executives to prospectively elect to cash out up to 10 days recreation leave per year.

Executives must continue to take at least 50% of their remuneration package as salary.

Executives should seek independent financial advice prior to entering into, or changing, any packaging arrangements.