Salary sacrifice expenses (ETF 75)
A1B.37.
Salary sacrifice expenses (ETF 75) record the expenses of benefits supplied by a public sector employer to employees under a salary sacrifice arrangement. These expenses are collected as part of the AGFS15 for national accounting purposes and contains details not normally used in GFS. Paragraph 7.47 of the 2008 SNA describes a salary sacrifice as a benefit such as a car or extra superannuation contributions that may be 'purchased' by the employee from the employer by foregoing some salary. Items can only be purchased in this way through a specific salary sacrifice agreement between the employer and the individual employee. The attraction of a salary sacrifice arrangement lies in the tax advantages of purchasing items under such a scheme. For example, a car bought by the employer and sold to the employee is taxed at a lower rate than a car purchased by an individual; and superannuation contributions are taxed differently from other income if deducted at source. Whether or not an employer provides benefits under salary sacrifice arrangements for employees is dependent on the employer's willingness to do so, and is not a mandatory part of the conditions of employment.
A1B.38.
In the ABS GFS, salary sacrifice expenses (ETF 75) are further classified as salary sacrifice expenses (ETF 751).
Salary sacrifice expenses (ETF 751)
A1B.39.
Salary sacrifice expenses (ETF 751) consist of the expenses of benefits supplied by a public sector employer to employees under a salary sacrifice arrangement. In the ABS GFS, salary sacrifice expenses are further classified by destination using an appropriate SDC code, and are further classified as:
- Salary sacrifice expenses - superannuation (ETF 7511, SDC); and
- Salary sacrifice expenses not elsewhere classified (ETF 7519, SDC).
Salary sacrifice expenses - superannuation (ETF 7511, SDC)
A1B.40.
Salary sacrifice expenses - superannuation (ETF 7511, SDC) consists of the value of expenses relating to superannuation provided by the employer to employees through a salary sacrifice arrangement. As mentioned above, there are tax advantages for the employee when they make extra superannuation contributions through a salary sacrifice arrangement. This item only records the expenses to the employer relating to the provision of superannuation to employees through a salary sacrifice arrangement, and excludes normal superannuation expenses.
Salary sacrifice expenses not elsewhere classified (ETF 7519, SDC)
A1B.41.
Salary sacrifice expenses not elsewhere classified (ETF 7519, SDC) consists of the value of expenses relating to items other than superannuation (such as a car, or computer) provided by the employer to employees through a salary sacrifice arrangement. As mentioned above, there are tax advantages for the employee when they purchase items through a salary sacrifice arrangement. This item only records the expenses to the employer relating to the provision of items other than superannuation to employees through a salary sacrifice arrangement, and excludes normal expenses.