New South Wales Consolidated Acts

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1971 - SECT 18AA

18AA Salary sacrifice contributions

(1) The whole or part of the amount required to be deducted from the salary of a member under this Act may be paid by salary sacrifice contributions, if the member elects to make salary sacrifice contributions and the designated employer and the trustees approve of the election.

(2) A "salary sacrifice contribution" is a contribution paid in accordance with an approval by the designated employer under which the member elects to forgo remuneration yet to be earned and the remuneration foregone is to be applied by the designated employer to the amount required to be deducted from the salary of a member under this Act.

(3) The amount payable for a salary sacrifice contribution to meet the requirement for a salary deduction under this Act is to comprise the following:

(a) the amount necessary (taking into account any deductions not made on a salary sacrifice basis) to meet the required deductions under this Act (the "contribution element"),

(b) the amount necessary to meet any tax payable under Commonwealth taxation law in respect of the amount paid under paragraph (a).

(4) A salary sacrifice contribution is to be paid within the same period as a deduction from salary under section 18.

(5) An election under this section:

(a) may be made only in respect of future salary instalments, and

(b) is to be in writing to the designated employer, and

(c) is to be accompanied by any information required by the trustees and the designated employer, and

(d) takes effect when it is approved by the designated employer and the trustees, and

(e) may be varied or revoked by notice in writing to the designated employer and the trustees.

(6) In this Act and the regulations, a reference (however expressed) to any of the following is taken to include a reference to the contribution element of a salary sacrifice contribution in accordance with an election under this section:

(a) a deduction from salary,

(b) a contribution by or in respect of a member.

(7) In this Act and the regulations, a reference (however expressed) to:

(a) an employer-financed component of a benefit does not include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution, and

(b) an employee-financed component of a benefit includes a reference to a contribution element of a salary sacrifice contribution and any part of a benefit financed by the contribution element of a salary sacrifice contribution.

(8) This section has effect despite any other provision of this Act.