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Budget Process: Financial planning within financial units

Salary on-costs

The information below is provided to assist you in budgeting for the on-costs for a new position. An understanding will assist in the analysis of Account Manager Transaction Reports and the preparation of a salaries budget.

This topic covers:

Salary on-cost table

Salary On-costs
 When employee is member of Superannuation Scheme for Australian Universities.

 

% all accounts

Continuing appointment - Full-rate superannuation

Payroll Tax

7.00%

Workers' Compensation Insurance

1.00%

Annual Leave Loading

1.30%

Superannuation

14.00% (See Note 1.)

Superannuation Guarantee Levy 

3.00% (See Note 2.)

Total

26.30%

Continuing appointment - Half-rate superannuation

Payroll Tax

7.00%

Workers' Compensation Insurance

1.00%

Annual Leave Loading

1.30%

Superannuation

7.00% (See Note 1.)

Superannuation Guarantee Levy

3.00% (See Note 2.)

Total

19.30%

Continuing appointment - No contributory superannuation

Payroll Tax

7.00%

Workers' Compensation Insurance

1.00%

Annual Leave Loading

1.30%

Superannuation

0.00% (See Note 1.)

Superannuation Guarantee Levy

9.00% (See Note 2.)

Total

18.30%

Casuals and overtime

Payroll Tax

7.00%

Workers' Compensation Insurance

1.00%

Annual Leave Loading

0.00%

Superannuation

0.00% (See Note 1.)

Superannuation Guarantee Levy

9.00% (See Note 2, 3.)

Total

17.00%

Note 1.

New employees will generally be members of the Superannuation Scheme for Australian Universities. 

Rates may vary for employees on other schemes such as the State Superannuation Scheme (SSF) and the State Authorities Superannuation Scheme (SASS) on other accounts. Contribution rates for existing employees may be obtained from PMIS.

Note 2.

The basic benefit is governed by the federal superannuation guarantee provisions. The rate of employer contribution from 1 July 1998 is 7%, rising to 8% effective 1 July 2000 , and then 9% from 1 July 2002 .

Note 3.

The following rates for the Superannuation Guarantee Levy applies to casual staff

0%

if, over a calendar month, an individuals earns less than $450.00

3%

for general staff that work less than 100hrs over a six monthly period

3%

for academic staff that earn less than $1,540.00 over a six monthly period

Note 4.

Payroll tax was reduced from 7.50% to 7.00% as at 8 February 2001 .

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Examples of on-costs calculations

Example 1 . A full-time staff member who contributes to a superannuation fund at the full rate and is appointed to a recurrent account. Total on-costs are 26.30%.

Example 2. Casual appointee to an ARC account. Total on-costs are 16.00%.

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Allowance for on-costs in grant applications

For most grants a simplified system of calculating the on-costs allowance is used as determined by the granting bodies or internal policies.

For example, for ARC applications for positions a flat rate of 26% on prescribed salary rate is used.

Often the actual costs are greater than the allowance and the difference must be met by the financial unit.

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