The methodology for packaging superannuation is relatively straightforward. Only those plans which meet certain criteria qualify. Criteria includes the following No employee holds more than 5 per cent of voting shares of the company. The shares must be of the employer or holding company. The shares acquired must not be subject to forfeiture.
Restrictions exist on disposal of shares for three years.
The same share benefits are offered to all eligible employees. Alternatively, an employer may make payments to gain priority access to childcare facilities without incurring an FBT liability. A property benefit will arise where an employer provides property to an employee at no cost or at a discounted price. Points to ponder Employer superannuation contributions are preserved until retirement and cannot be accessed unless significant financial hardship can be demonstrated. Items linked to salary such as overtime payments and annual leave loading need to be linked to total package, not notional salary.