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DRAFT Recovery of Fringe

Benefits Tax arising from Salary Sacrifice

Policy Directive

Version No.: 2.0 Approval date: xxxxx

Policy Classification: SENSITIVE: LEGAL-I2-A1 Policy No: xxx xxxx

INFORMAL COPY WHEN PRINTED, ALWAYS REFER TO THE ELECTRONIC COPY FOR THE LATEST VERSION. Recovery of Fringe Benefits Tax arising from Salary Sacrifice Policy Directive of 10

SENSITIVE: LEGAL-I2-A1

Contents

1. Policy Statement ................................................................................................................... 3 1.1. Scope ............................................................................................................................. 3

2. Roles and Responsibilities ................................................................................................... 3 2.1. SA Health Taxation Services ........................................................................................... 3 2.2. Third Party Provider (Maxxia) .......................................................................................... 4 2.3. Employees ...................................................................................................................... 4 2.4. Shared Services SA – Payroll ......................................................................................... 4

3. Policy Requirements ............................................................................................................. 5 3.1. FBT shortfall ................................................................................................................... 5 3.2. FBT recovery .................................................................................................................. 5 3.3. FBT shortfall thresholds .................................................................................................. 7 3.4. Payroll recovery options .................................................................................................. 7

4. Implementation and Monitoring ........................................................................................... 7 5. National Safety and Quality Health Services Standards ..................................................... 8 6. Definitions ............................................................................................................................. 8 7. Associated Policy Directive/Policy Guidelines and Resources ......................................... 9 8. Document Ownership and History ....................................................................................... 9



Recovery of Fringe Benefits Tax arising from Salary Sacrifice Policy Directive

1. Policy Statement

The purpose of this policy directive is to explain that employees who engage in salary

packaging arrangements are liable for, and must pay, any Fringe Benefits Tax (FBT) shortfall

that arises when the capped FBT exemption amount has been exceeded.

1.1. Scope

This policy directive applies to all SA Health employees, current and former, who have

engaged in salary packaging arrangements under South Australian Government Salary

Sacrifice Arrangements (SAGSSA).

Employees under the old Medical Officers Specific Salary Sacrifice Scheme (MOSSSS) are

not included in this policy directive as that scheme is no longer available to new entrants. All

new Medical Officer Employees will utilise the SAGSSA for their salary packaging

arrangements; and under this arrangement, this policy directive is applicable.

2. Roles and Responsibilities

2.1. SA Health Taxation Services

Taxation Services is responsible for:

ensuring Maxxia is required to perform certain tasks and responsibilities, as outlined

in accordance with this policy directive and the Service Level Agreement (SLA)

being the contact and providing information to employee enquiries relating to FBT

shortfalls

reviewing employee queries and disputes regarding the calculation of an FBT shortfall

arising from salary packaging

ensuring an FBT shortfall is recovered from an employee where required

following up an FBT shortfall which is a result of incorrect information provided by

Maxxia, or due to an incorrect process that has been applied

determining whether financial hardship cases result in modified payment amounts

sending Payroll Deduction forms to Shared Services SA (SSSA)-Payroll to

commence deductions for current employees and monitoring and liaising with SSSA-

Payroll to resolve queries

organising a post-tax invoice through SSSA-Accounts Receivable for former

employees, when required

presenting site Chief Finance Officers (CFO) / SAAS Finance Director with a list of

employees with an FBT shortfall over $100 for their review, prior to sending them to

Maxxia for initial contact

requesting Maxxia to automatically deduct small shortfalls between $3 and up to $100

from employee’s salary packages after first giving staff an opportunity to query the

deduction



resolving residual cases and non-responders referred back to it by Maxxia or

employees directly, and

providing monthly updates to SSSA-Payroll to add flags in CHRIS 21 to indicate

unacknowledged FBT shortfalls, to put measures in place to reduce the risk of

employees leaving employment with a debt owed to the SA Government.

2.2. Third Party Provider (Maxxia)

Maxxia, as SA Health’s third party provider, will be responsible for:

ensuring, that all tasks and responsibilities, as outlined in the SLA between the SA

Government and Maxxia, are performed as per the Agreement

ensuring that all FBT it collects is provided to SA Health in a timely manner, and

advising Taxation Services when payments are made

automatically deducting shortfalls between $3 and up to $100 from employee’s salary

packages, after initially advising employees of the expected deduction date and

amount to be deducted

providing verbal and written notice to employees requiring FBT recovery, resulting

from SAGSSA salary packaging as required, within the specified timeframe

sending payroll deduction forms to employees with FBT shortfalls over $100

sending returned forms to Taxation Services, and

providing non responders’ details or employees with a further dispute back to

Taxation Services for resolution.

2.3. Employees

Employees are responsible for:

ensuring they take into account employer provided fringe benefits when undertaking a

salary sacrifice arrangement

acknowledging their FBT shortfall formally, in writing, within 21 days

reimbursing their FBT shortfall within the required timeframe

negotiating with Taxation Services for an increase in the timeframe to pay their FBT

shortfall, if they can demonstrate financial hardship

negotiating directly with Maxxia where the disputed FBT shortfall is a result of

information provided by Maxxia, or by a process followed by Maxxia, and

advising Taxation Services if they are leaving SA Health and have an FBT shortfall.

2.4. Shared Services SA – Payroll

SSSA – Payroll are responsible for commencing a fortnightly deduction from the

employee’s pay upon receipt of an excel file feed from Taxation Services, after it has

obtained a signed Deed Poll or approval to recover under Section 70 of the Public

Sector Act 2009

SSSA – Payroll are responsible for refunding any excess deductions made from an

employee’s pay in a timely basis, and

SSSA – Payroll are responsible for adding and removing the shortfall Flags indicator

in CHRIS 21 after receiving a monthly update from Taxation Services.



3. Policy Requirements

This policy directive is for employees who have entered into a Salary Sacrifice Agreement

(SSA), under the SAGSSA, and are required to repay an amount of FBT to the employer.

3.1. FBT shortfall

All FBT shortfalls must be recovered.

Under the SAGSSA, employees are liable to meet the cost of any taxation liability,

including FBT, resulting from their salary packaging arrangement. This generally occurs

where a public hospital or public ambulance service employee, who is eligible for the

Grossed Up Taxable Value (GUTV) capped FBT exemption, exceeds that cap; resulting in

an FBT shortfall.

Where an FBT shortfall for an employee is identified before 30 June, Maxxia will be

informed. Maxxia will notify employees of the FBT shortfall, and will refer any cases to

Taxation Services where they are not able to collect the money. Where an FBT return

amendment occurs, and it identifies employees with a FBT shortfall, Taxation Services will

notify those employees.

Current employees must formally acknowledge their FBT shortfall, and thereby authorise

its recovery, in writing within 21 days to Maxxia.

Employees can request Taxation Services to review the reasons for, and the calculations

of, their FBT shortfall. However, in accordance with the SAGSSA Customer Advocate

Process, where the FBT shortfall is being disputed as a result of information received by,

or from a service performed by Maxxia, employees must contact the provider directly to

discuss and resolve any issues with a Panel Member.

If the employee can demonstrate that financial hardship would result directly from the

application of this policy directive, an application may be made to Taxation Services to

request an extension to pay. This application must include a specific reason and any

supporting information.

3.2. FBT recovery

FBT recoveries will be based on the principles outlined in the Recovery of Employees

Fringe Benefits Tax Salary Sacrifice Benefits procedure.

3.2.1. Professional Development

Under various Enterprise Bargaining Agreements, the entitlements for Professional

Development (PD) are inclusive of FBT. That is, any FBT resulting from PD

reimbursements will form part of the PD entitlement available to the employee.

Where a PD reimbursement, plus FBT, exceeds the PD balance available, the employee

will repay the excess to the employer.

3.2.2. Government Salary Sacrifice Arrangements (SAGSSA)

Employees in this scheme are liable for the cost of any FBT resulting from salary

packaging. On the SSA form, which both the employer and employee need to sign, it is

agreed by the employee to pay any cost arising from salary packaging, including any FBT

liability. Clause 9.5 of the SSA states that the employee indemnifies their employer

against this FBT liability, any other taxation liability, and the Maxxia administration fee.



Any FBT liability repayments may be deducted by the employer from pre-tax earnings in

accordance with the SSA clause 2.3 (b), which states: “all liability including any FBT

liability incurred by the employer, including outside of SAGSSA, in respect of the

employee may be deducted by the employer from the employee’s total annual earnings”.

Further, pursuant to clause 3 of the SSA, employers have the power to cease access to

salary package, should an employee not settle their liability to its satisfaction, and this

may result in disqualification from any further participation in salary packaging

arrangements. Clause 9.7 continues the liability obligation by employees to repay the FBT

liability; even upon the termination of the SSA.

SA Cabinets’ approval for salary packaging is on the condition of no cost to the employer.

It has been decided that:

where there are fringe benefits which attract FBT provided by the employer outside

of a salary sacrifice arrangement, these are allocated towards the FBT exempt

threshold. This has the effect of further reducing the amount that is available for the

employee to salary sacrifice on an FBT exempt basis.

if an employee salary sacrifices up to the capped FBT exemption limit, any employer

provided benefits (such as HECS reimbursements, taxable employee rewards,

home/work use of a government car, private component of overseas travel etc.)

would result in the exemption limit being exceeded.

any FBT from salary sacrificing over the capped FBT exemption is payable by the

employee to the employer.

Therefore, in the FBT Return, the capped FBT exemption must first be utilised by other

employer provided fringe benefits (apart from PD), with salary packaged benefits applied

against the remainder of the exemption cap; after these employer provided benefits have

been accounted for.

3.2.1. Executives with SA Government cars packaged as part of their Total

Remuneration Package Value (TRPV)

Executives (ie, who are employed under a SAES or EX contract) are able to salary

package fringe benefits concurrently, under two different schemes:

A motor vehicle from Leaseplan as part of their executive employment contract. The

cost of the car (including a charge for FBT) is deducted from the TRPV; and/or

Other fringe benefits through SAGSSA, as administered through Maxxia.

Under the Fringe Benefits Tax Assessment Act 1986, there is a capped FBT exemption

for employees employed in, or providing services exclusively to a public hospital or public

ambulance service. The executive’s Leaseplan car, and other SAGSSA benefits, are both

applied towards the capped FBT exemption, along with employer provided fringe benefits.

3.2.2. Employees with specific approval

There may be limited cases where approval has been given for the employer to pay the

FBT on employer provided benefits, without affecting an employee’s salary package ie the

full capped FBT exemption is allowed for salary packaged benefits, in spite of other

employer provided benefits. For these cases, approval must be obtained either from the

Director, Corporate Services or the Chief Executive, SA Health.



3.3. FBT shortfall thresholds

There are four shortfall thresholds, and each threshold requires a different recovery

management process. Management of these shortfalls are addressed in the Recovery of

Employees Fringe Benefits Tax Salary Sacrifice Benefits procedure.

Less than $3

Shortfalls from $3 to $20

Shortfalls greater than $20 and up to $100

Shortfalls greater than $100.

3.4. Payroll recovery options

For current employees, four recovery options are possible:

1. If an employee has sufficient funds available in their Maxxia salary packaging

account, they can elect for the full amount to be paid from this account.

2. Where the FBT shortfall is less than 10% of the employee’s gross pre-tax

fortnightly salary, or they elect to repay the full amount in one pay, the full amount

of the FBT shortfall may be deducted from the employee’s pre-tax salary in his/her

next pay.

3. Where the FBT shortfall is 10% or more of the employee’s gross pre-tax fortnightly

salary, then an amount not greater than 10%, of his/her gross pre-tax fortnightly

salary may be deducted from pre-tax salary each pay, and continuing until the FBT

shortfall has been extinguished.

4. Financial hardship may be considered where the available options will cause an

individual financial difficulty. This will result in a lower agreed amount being repaid

upon evidence of the financial hardship.

Where a current employee does not acknowledge their FBT shortfall after receiving the

final notice, the amount may be referred for recovery as an auto payroll deduction under

s70 of the Public Sector Act 2009.

For employees leaving SA Health, on termination of employment, any remaining FBT

shortfall will be deducted from any pre-tax amounts payable to the employee. Should

insufficient funds be available, or the employee has left before this can occur, the

employee will be invoiced for any remaining FBT shortfall.

4. Implementation and Monitoring

Taxation Services is responsible for monitoring any FBT shortfalls that arise, and reporting

these to Maxxia by 17 July each year. FBT shortfalls will be identified and endorsed by Health

Units to recover, with each employee contacted within specific timeframes. This enables

Maxxia to contact all employees by 31 July with a shortfall over $100. Small shortfalls up to

$100 may not be contacted until up to 31 August.

Maxxia will provide Taxation Services with a regular status update of each shortfall. Maxxia

will return all cases it is unable to obtain acknowledgement to Taxation Services by 31 August

for larger shortfalls and 30 September for smaller shortfalls. Taxation Services will monitor this

in its monthly FBT Recovery liability account reconciliation.



5. National Safety and Quality Health Services Standards

N/A

6. Definitions

In the context of this document:

capped FBT exemption is available to employers to use for fringe benefits provided to its

employees, who are working exclusively in (or exclusively in connection with) a public

hospital or predominantly for SA Ambulance Service. The $17,000 FBT cap is a grossed

up taxable value which effectively allows these employees to salary package up to $9,010

of benefits tax free. However, any employer provided fringe benefits would access this

cap first, reducing the amount which is available for salary packaging. Additionally, a

secondary cap of up to $5,000 grossed up taxable value can be applied to salary

sacrificed meal entertainment and entertainment facility leasing expenses (EFLE) for

employees eligible for the primary cap. It effectively allows $2,650 of meal entertainment

or EFLE to be packaged tax free, on top of the first cap. If either of these caps is

exceeded then the benefits would incur FBT and then be recoverable from an employee.

Fringe Benefits Tax (FBT) is a benefit provided in respect of employment. This

effectively means a benefit is provided to an employee (or their associate) because they

are an employee. Benefits can be provided by the employer, or they can be provided by a

third party under an arrangement with SA Health. Generally, benefits provided to

volunteers and contractors do not attract FBT. Benefits include rights, privileges and

services.

Examples include:

the use of a work car for private purposes

reimbursing a private expense such as reimbursing non-business related telephone

calls

repayment of a salary overpayment over an extended period of time

dual purpose travel

recreational entertainment (e.g. golf day or dinner/dance) or

HECS fees paid on behalf of an employee.

‘Grossed up’ Taxable Value (GUTV) means increasing the taxable value of a benefit to

reflect the gross salary an employee would have to earn at the highest marginal tax rate,

including the Medicare Levy, to purchase that benefit using after-tax dollars. The gross up

factor depends on whether the benefit is subject to Goods and Services Tax (GST) or not.

Maxxia is the sole salary packaging provider for SA Government; and is also referred as a

Service Provider or Third Party Provider.

Medical Officers Specific Salary Sacrifice Scheme (MOSSSS). For employees in

MOSSSS, the employer pays all FBT on all salary packaged benefits within the scheme,

without any recovery from the employee under an historical Enterprise Bargaining

Agreement, which is now closed to new members. Employees in the old scheme are

identified with a standard category code yz MOSSSS Salary Sacrifice to distinguish them

from other salary packaged benefits, and to enable them to be isolated from other

employees who are not in the old scheme.

Panel Member (from your Service Provider) is to assist employees in resolving issues

and problems.



salary packaging arrangements is a term used to refer to the inclusion of employee

benefits in an employee remuneration package in exchange for giving up part of a

monetary salary.

third party providers (or service provider) are used when certain financial functions

and responsibilities can be outsourced, e.g. Maxxia, Shared Services SA (SSSA) etc...

Where this occurs, a Service Level Agreement (SLA), or similar, must be negotiated, as

this will define the responsibilities that have been agreed and allocated between the public

authority and the service provider for the key tasks, activities and controls associated with

the outsourced financial management functions.

7. Associated Policy Directive/Policy Guidelines and Resources

Fringe Benefits Tax Assessment Act 1986

Fringe Benefits Tax Public Hospital Exemption and Salary Sacrifice Policy Directive

Maxxia Dispute Resolution Process

Professional Development and Fringe Benefits Tax Policy Directive

Public Sector Act 2009

Recovery of Employees FBT Salary Sacrifice Benefits Procedure

Salary Sacrifice information provided by Maxxia for SA Government employees

Treasurer’s Instruction 5 Debt Recovery and Write Offs

Treasurer’s Instruction 25 Taxation Policies

For any further specific taxation queries, contact Taxation Services via

[email protected] or telephone 8463 6776.

8. Document Ownership and History

Document developed by: Policy and Compliance Corporate Finance Services, Finance

File / Objective No.: 2015-10396 | qA420847 | TAX-P7011

Next review due: 30/11/2021

Policy history: Is this a new policy? N

Does this policy amend or update and existing policy? Y

If so, which version? V1.0

Does this policy replace another policy with a different title? Y / N

If so, which policy (title)?

Approvals

Approval

Date

Version Who approved New/Revised

Version

Reason for Change

xx/xx/xxxx 2.0 Policy Committee Scheduled review

05/04/2016 1.0 Portfolio Executive Original version

https://www.comlaw.gov.au/Details/C2014C00048

https://www.comlaw.gov.au/Details/C2014C00048

http://inside.sahealth.sa.gov.au/wps/wcm/connect/non-public+content/sa+health+intranet/business+units/health+system+development/office+of+the+chief+executive/policies/directives/fbt+public+hospital+exemption+and+salary+sacrifice+policy+directive

http://www.maxxia.com.au/government/your-feedback


http://inside.sahealth.sa.gov.au/wps/wcm/connect/non-public+content/sa+health+intranet/business+units/health+system+development/office+of+the+chief+executive/policies/directives/professional+development+and+fbt+policy+directive


http://www.legislation.sa.gov.au/LZ/C/A/Public%20Sector%20Act%202009.aspx

http://in.health.sa.gov.au/OracleAssist/OracleFinancials/SAHealthFinancePolicies.aspx

http://maxxia.com.au/government/salary-packaging

https://www.treasury.sa.gov.au/budget/compliance-and-resources/treasurers-instructions




mailto:[email protected]



Endorsements

Approval

Date

Version Endorsed by Position Title

xx/xx/xxxx 2.0 Danny DeCesare Director, Corporate Finance Services, Finance and Corporate Services Division

14/02/16 1.0 Danny DeCesare Director, Corporate Finance Services, Finance and Corporate Services Division

By virtue of this document displaying an email date, it identifies that approval has been obtained by the appropriate delegated officer.

Contributors

Name

Document Owner Manager, Taxation Services, Financial Accounting, Finance and

Corporate Services

Contributors Director Financial Accounting, Finance and Corporate Services Division

Assistant Director, Financial Accounting and Taxation Services, Financial

Accounting

Site Chief Finance Officers / SAAS Finance Director

LHN/SAAS Financial Business Managers, Local Health Networks

Site Workforce Directors

Senior HR Managers

General Manager, Policies and Procedures, Account Management &

Compliance, Finance and Corporate Services Division

Principal Taxation Accountant, Taxation Services, Financial Accounting

SAGSSA Principal Contract Manager, Office for the Public Sector

Payroll Manager, Shared Service SA

Assistant Payroll Manager and Customer Engagement, Shared Services

SA

Anne Battmans, Maxxia

Regional Workforce Directors Industrial Liaison Committee

Manager Policies and Procedures, Corporate Finance Services

Manager, Strategic Support Unit, Finance

© Department for Health and Wellbeing, Government of South Australia. All rights reserved.

TAX

DRAFT Recovery of Employees

Fringe Benefits Tax Salary Sacrifice Benefits

Procedure

Version V2.0

SA Health Finance


For Official Use Only-I2-A1 Page 2 of 15

Document control information

Document owner Andrew Jackson, Manager, Taxation Services, Financial Accounting

Contributors Assistant Director, Financial Accounting and Taxation Services, Financial

Accounting

Site Chief Finance Officers / SA Ambulance Service Finance Director

Site Local Health Networks (LHN)/SAAS Financial Business Managers

Site Workforce Directors

Senior HR Managers


Principal Taxation Accountants, Taxation Services, Financial Accounting


Payroll Manager, Shared Services SA

Assistant Payroll Manager and Customer Engagement, Shared Services SA

Industrial Liaison Committee

Anne Battams, Maxxia

Manager, Policies and Procedures, Corporate Finance Services

Manager, Strategic Support Unit, Finance

Document location Oracle Assist

Document classification FOUO-I2-A1

Reference TAX_PR_7011.1

Version V2.0

Valid from November 2018

Review date November 2021

Document history

Date Author Version Change reference

09/11/2015 Andrew Jackson, Manager Taxation Services, Finance and Corporate Services

V1.0

Rebecca Bonython, Manager, Policies and Procedures, Corporate Finance Services

V2.0 Scheduled review

Endorsements

Date Endorsed by Position title

21/03/2016 Courtney Tasker General Manager Policies & Procedures, Account Management &

Compliance (PPAMC), Finance and Corporate Services

Courtney Tasker General Manager PPAMC, Finance and Corporate Services

Approvals

Email Date Approved by Position title



22/03/2016 Steven Gerassimou Director, Financial Accounting, Finance and Corporate Services

Steven Gerassimou Director, Financial Accounting, Finance and Corporate Services

By virtue of this document displaying an email date, it identifies that approval has been obtained by the appropriate delegated officer.



Table of contents

1. Procedure Statement .............................................................................................................................. 5 2. Background ............................................................................................................................................. 5 3. Definitions ................................................................................................................................................ 5 4. Procedure Detail...................................................................................................................................... 6

4.1. Professional development recovery ................................................................................................ 6 4.2. Salary sacrifice recovery.................................................................................................................. 6

4.2.1. Government salary sacrificing arrangements ........................................................................ 6 4.2.2. Executives with SA Government cars packaged as part of their Total Remuneration Package Value (TRPV) ...................................................................................................................... 6 4.2.3. Employees with specific approval ......................................................................................... 6

4.3. FBT shortfall thresholds ................................................................................................................... 7 4.3.1. Shortfalls up to $3.................................................................................................................. 7 4.3.2. Shortfalls between $3 and $20 .............................................................................................. 7 4.3.3. Shortfalls greater than $20 and up to $100 ........................................................................... 7 4.3.4. Shortfalls greater than $100 .................................................................................................. 7

4.4. Loan fringe benefits ....................................................................................................................... 10 4.5. Dispute resolution .......................................................................................................................... 10

4.5.1. Dispute with FBT shortfall calculation ................................................................................. 10 4.5.2. Dispute with a panel member .............................................................................................. 12 4.5.3. Refusal to acknowledge/repay FBT shortfall ....................................................................... 12

4.6. FBT implications ............................................................................................................................ 12 5. Applicability ........................................................................................................................................... 12 6. Responsibilities..................................................................................................................................... 13

6.1. Taxation Services .......................................................................................................................... 13 6.2. Maxxia............................................................................................................................................ 13 6.3. Employees ..................................................................................................................................... 13 6.4. SAAS Finance Director/site CFO and DHW Executive Directors................................................. 14 6.5. Site Workforce Directors ................................................................................................................ 14

7. References/Related Documents .......................................................................................................... 14 8. Procedure Sponsor ............................................................................................................................... 14 Appendix ........................................................................................................................................................ 15 A Examples ............................................................................................................................................... 15



1. Procedure Statement

The purpose of this procedure is to outline the methodology to recover Fringe Benefits Tax (FBT) owed

by current and former employees, as a result of their salary packaging arrangements.

2. Background

Under the South Australian Government Salary Sacrifice Arrangements (SAGSSA), employees are

liable to meet the cost of any taxation liability, including FBT, resulting from salary packaging. This

generally occurs where a SA Health Hospital Services, public hospital or public ambulance service

employee who is eligible for the capped FBT exemption limit, exceeds that cap, resulting in an FBT

shortfall.

An FBT shortfall is usually as a result of the employee not taking into account employer provided

benefits when developing a salary package (e.g. use of a Government car for private use or the

reimbursement of Commonwealth supported courses or loans) with their Salary Sacrifice Provider. An

FBT shortfall is not a salary overpayment, consequently, they are not captured under Determination 6:

Recovery of Overpayments, issued by the Commissioner for Public Sector Employment.

This procedure outlines the steps to be taken to recover the FBT shortfall from the employee.

3. Definitions

Capped FBT exemption is available to employers to use for fringe benefits provided to its

employees, who are working exclusively in (or exclusively in connection with) a public hospital or

SA Ambulance Service. The $17,000 FBT cap is a grossed up taxable value which effectively

allows these employees to salary package up to $9,010 of benefits tax free. However, any

employer provided fringe benefits would access this cap first, reducing the amount which is

available for salary packaging. Additionally, a secondary cap of up to $5,000 grossed up taxable

value can be applied to salary sacrificed meal entertainment and entertainment facility leasing

expenses (EFLE) for employees eligible for the primary cap. It effectively allows $2,650 of meal

entertainment or EFLE to be packaged tax free, on top of the first cap. If either of these caps is

exceeded then the benefits would incur FBT and then be recoverable from an employee.

Deed Poll is a legal document that binds a single party to a particular course of action

Fringe Benefits Tax (FBT) is a benefit provided in respect of employment. This effectively means

a benefit is provided to an employee (or their associate) because they are an employee. Benefits

can be provided by the employer, or they can be provided by a third party under an arrangement

with SA Health. Generally, benefits provided to volunteers and contractors do not attract FBT.

Benefits include rights, privileges and services.

Examples include:

the use of a work car for private purposes

reimbursing a private expense such as reimbursing non-business related telephone calls

repayment of a salary overpayment over an extended period of time

dual purpose travel

recreational entertainment (eg. golf day or dinner/dance) or

HECS fees paid on behalf of an employee.

‘Grossed up’ Taxable Value (GUTV) means increasing the taxable value of a benefit to reflect

the gross salary an employee would have to earn at the highest marginal tax rate, including the

Medicare Levy, to purchase that benefit using after-tax dollars. The gross up factor depends on

http://www.pswr.sa.gov.au/salary-sacrifice



whether the benefit is subject to the Goods and Service Tax (GST) or not.

Maxxia is the sole salary packaging provider for SA Government. In the context of this document,

it can also be known as a Service Provider or Third Party Provider.

Panel Member (from your Service Provider) is to assist employees in resolving issues and

problems.

Salary packaging arrangements is a term used to refer to the inclusion of employee benefits in

an employee remuneration package, in exchange for giving up part of a monetary salary.

4. Procedure Detail

After the end of each FBT year, Taxation Services will identify details of fringe benefits provided and

related FBT shortfalls for each employee. Taxation Services will then identify whether FBT is to be

recovered from employees as a result of salary packaging and, if so, forward this information to Maxxia

to seek recovery within a specified time frame. The following recovery procedures should be followed

4.1. Professional development recovery

Where a PD reimbursement, plus FBT, exceeds the PD allowance available, the excess is to be

repaid to the employer, by the employee. These benefits appear in reports under the standard

category code zzz Professional Development. Employees should be advised by the PD Office

when these amounts have been deducted from their entitlement.

If the amount of FBT recoverable exceeds the accumulated balance of the employee PD

entitlement, the excess is to be recovered from the employee, via pre-tax salary deduction.

For further information refer to Professional Development and Fringe Benefits Tax Policy Directive.

4.2. Salary sacrifice recovery

4.2.1. Government salary sacrificing arrangements

Under the standard category code z Salary Sacrifice, any FBT attached to this will be recovered

from the employee from pre-tax salary deductions; unless the employee has terminated

employment. Where the employee has terminated employment, the amount is recovered from post-

tax payments.

4.2.2. Executives with SA Government cars packaged as part of their Total Remuneration

Package Value (TRPV)

The standard category code will separately show FBT for zz Executive Cars, which is applied to

the FBT cap after any SAGSSA benefits. If there is an amount showing as FBT payable, this cost

will be met by the employer and not recharged to the executive.

If the employee has any FBT payable under the standard category code of z Salary Sacrifice, then

this is to be recovered from the executive in the same manner as other employees.

To prevent executives being overcharged FBT where they salary package under both of the above

schemes:

executives can access the full capped FBT exemption on their salary package through

Maxxia, without adjusting for FBT recoveries where a Leaseplan car is taken

the notional FBT already charged to the executive, as part of their TRPV, can be regarded as

full payment towards any FBT resulting from the use of the car.

4.2.3. Employees with specific approval

There may be limited cases where an approval has been given for the employer to pay the FBT on

employer provided benefits, without affecting an employee’s salary package ie. the full capped FBT

exemption is allowed for salary packaged benefits, in spite of other employer provided benefits.




For example there may be circumstances where it may not be appropriate for the recovery of FBT

from the employee where it is caused by home-work travel in government cars.

This may be the position where:

there is specific employer approval and direction to garage a government car at home for

security reasons, or

there is a specific entitlement or approval under an employee remuneration arrangement to

provide a car without recouping FBT.

However, consideration will not be given to circumstances where FBT has been incurred as a

result of failure to correctly maintain a log book. Such approval must have been obtained either

from the Director, Corporate Services or the Chief Executive, SA Health.

4.3. FBT shortfall thresholds

There are four shortfall thresholds, and each threshold involves a different recovery management

process.

4.3.1. Shortfalls up to $3

Requiring no investigation, shortfalls up to $3 may be written off on approval by the Chief

Executive, SA Health.

4.3.2. Shortfalls between $3 and $20

All FBT is to be recovered where possible and an attempt must be made to recover the debt.

However, in some circumstances, approval will be sought from the Chief Executive, SA Health to

waive the minor FBT shortfall, ie. those which are up to $20 in value.

4.3.3. Shortfalls greater than $20 and up to $100

In accordance with Treasurer’s Instruction 5 Debt Recovery and Write Offs, any FBT shortfall

greater than $20 and up to $100 will have an attempt made to recover the FBT from the employee;

except if there is a known approved FBT cap reallocation. This will be:

via Maxxia deducting the amount from employees with an active salary packaging account, or

via the PD Office automatically deducting the amount from the staff member with a current PD

balance where it is a PD FBT shortfall.

Maxxia will first contact employees in writing to advise them of the shortfall amount incurred and

the date that Maxxia will automatically deduct the funds from their accounts. The letter (sent by

email where possible) will contain contact details should the employee want to query the shortfall.

Unless the employee disputes the shortfall and states they do not want Maxxia to deduct the funds

from their account, an automatic deduction will take place on a nominated date.

Where an amount cannot be recovered through this initial phase, the employee will be contacted

by Taxation Services to arrange for the repayment of their FBT shortfall.

4.3.4. Shortfalls greater than $100

In accordance with Section 70 of the Public Sector Act 2009:

where shortfalls are greater than $100, and

an employee does not respond to the original contact from Maxxia, or the subsequent Final

Notice sent by Taxation Services acknowledging their outstanding FBT shortfall,

their name will sent to their site Workforce Director for authorisation to commence an automatic

payroll deduction from the employee.

PD Offices will automatically deduct PD amounts from staff with a current PD balance.



Current employees

The FBT shortfall must be recovered from the employee’s pre-tax gross salary as follows:

1. Maxxia must provide written notice to the employee of the outstanding FBT shortfall, within a

specified time frame. The written notice will include:

details of the benefit and the amount of the FBT shortfall

a statement that the amount is recoverable from the employee after they have formally

acknowledged the FBT shortfall

a form enabling the employee to acknowledge the FBT shortfall and payment options

details of the SA Health Recovery of FBT arising from Salary Sacrifice Policy Directive

the deadline for disputes relating to FBT shortfalls, and

Taxation Services’ contact details for any queries.

2. The employee must formally acknowledge their FBT shortfall (and thereby authorise

recovery) in writing within 21 days of being advised.

3. Where an employee has sufficient funds available in their Maxxia salary packaging account,

they can elect for the full amount to be paid from this account. If the employee does not provide

this acknowledgement to Maxxia within the specified timeframe, or has a request for financial

hardship, their case will be referred back to Taxation Services.

4. Where the employee has insufficient funds in their Maxxia salary packaging account, or they

prefer to have the amount recovered through payroll deductions, Maxxia will arrange for the

employee to elect one of the available payroll deduction options.

5. Upon receipt of the Acknowledgement of FBT Shortfall declaration form, Taxation Services will

initiate the process of commencing fortnightly deductions through SSSA-Payroll for current

employees.

6. Taxation Services will ensure all avenues of recovery are considered (including automatic

payroll deductions) and will notify Shared Service SA (SSSA) - Payroll to record any

outstanding FBT shortfall for all non-responders. If no payment is made, then the matter should

be referred to the Crown Solicitor’s Office for recovery as a final option (see 4.5.3. below).

The payroll recovery options are provided in a Deed Poll form advising as follows:

1. If the FBT shortfall is less than 10% of the employee’s gross pre-tax fortnightly salary,

the full amount of the FBT shortfall will be deducted from the employee’s pre-tax salary

in his/her next pay after he/she has formally acknowledged the FBT shortfall.

2. If the FBT shortfall is 10% or more of the employee’s gross pre-tax fortnightly salary,

then an amount not greater than 10%, of his/her gross pre-tax fortnightly salary, will be

deducted from pre-tax salary each pay, (commencing after the employee has formally

acknowledged the FBT shortfall) and continuing until the FBT shortfall has been

extinguished.

3. In accordance with a formal request for financial hardship, that has been submitted and

approved in writing by the SA Health, Manager, Taxation Services, a lower fortnightly

amount may be deducted pre-tax each pay until the FBT shortfall has been fully repaid.

The final deduction will become the closing balance when the regular fortnightly

deduction amount becomes higher than what is still owed at that time. This option will

only be valid if a copy of the request for financial hardship endorsed with the approval of

the SA Health, Manager, Taxation Services is attached to the acknowledgement form.



7. If the employee does not provide acknowledgement of the FBT shortfall, Taxation Services will

initially send a Reminder Notice. (It should be noted that as the recovery will be from pre-tax

salary, employees will not be worse off when they are repaying 10% of their gross salary, as

this would amount to the same result in their net salary as if they were making post-tax

payments of 10% of their net pay. Consequently, they will pay off their FBT shortfall much

quicker, and at a lower cost to them.)

8. If a current employee does not acknowledge their FBT shortfall after the Reminder Notice, a

Final Notice will be issued.

9. Should they fail to acknowledge, after receiving the Final Notice from Taxation Services, the

amount may be referred for recovery as an automatic payroll deduction under Section 70 of the

Public Sector Act 2009.

10. Should further dispute arise, or they are not contactable, then the matter may be referred to the

Crown Solicitor’s Office for recovery.

Leaving SA Health

11. Employees are to advise Taxation Services if they are leaving SA Health and will need to make

arrangements for any outstanding FBT shortfall to be repaid. This may include completing an

Acknowledgement of FBT Shortfall Declaration form.

12. On termination of employment, any remaining FBT shortfall will be deducted from any

pre-tax amounts payable to the employee.

Where the remaining FBT shortfall amount is greater than the amount the employee will

receive upon termination or the deduction has not occurred, an invoice will be raised by

Taxation Services which will be paid as a post-tax amount.

If the employee remains a SA Health employee, but changes their employer (e.g.

transfers from Flinders Medical Centre to Royal Adelaide Hospital), the FBT shortfall

can still be paid to SA Health through a payroll deduction. A journal will occur to transfer

the amount between the respective employers.

If they switch employment to another SA Government agency, the employee will follow

the Former Employees’ process outlined below, but must still comply with Treasurer’s

Instruction 5 Write Offs.

If the employee leaves SA Government, section 4.2 Former Employee applies.

Former employees

Former employees are those employees who are no longer an SA Health employee. In these

instances, the FBT shortfall cannot be repaid from pre-tax salary deductions, as it is not legally

possible unless they have an outstanding unpaid employee entitlement. In these instances, they

will receive an invoice for the amount they owe, which will be arranged by Taxation Services.

Where the individual involved is a former employee, the recovery process should be as follows:

1. Taxation Services will remove any former employees it identifies from the list of recoveries.

This list is sent to Maxxia to contact. Additionally, some employees may become former

employees after Maxxia has been provided with a list of current employees, but before they

acknowledge their FBT shortfall.

2. Taxation Services will submit to SSSA a Tax Invoice Request form and, where required, an SA

Health Employee Creation Amendment form. SSSA will raise an invoice and return the invoice

to Taxation Services.



3. Once the invoice is received, Taxation Services will forward it to the former employee, along

with written notice to the employee regarding the outstanding FBT shortfall. The written notice

will include:

details of the benefit/s and the amount of the FBT shortfall

details of the Recovery of FBT Arising from Salary Sacrifice Policy Directive and

Procedure, and

Taxation Services contact details for any queries.

4. The individual must formally acknowledge the FBT shortfall by payment of the invoice.

5. Should the former employee dispute the invoice, the employee must contact Taxation Services

within 21 days.

6. If the individual does not provide payment, or disputes the amount or is not contactable, this

will be followed up through the normal SA Health non-employee debt management procedures.

7. Disputes may require the matter to be treated under the Dispute Resolution process below and

may ultimately need to be referred to the Crown Solicitor’s Office for recovery (see 4.5.3.

below).

8. The amount to be repaid will be post-tax, as the employee is no longer a current employee of

SA Health.

4.4. Loan fringe benefits

When an employee takes an extended period of time to repay their FBT shortfall, a loan fringe

benefit will occur. The value of the loan is the notional interest that could have been earned on that

money by the employee when not repaying it to their employer.

In most cases, these FBT shortfalls will be a minor fringe benefit and not incur additional FBT.

The loan may not be considered a minor fringe benefit and will attract further FBT, depending on

other factors occurring, such as:

the actual value of the FBT shortfall or

time taken to repay or

where there are prior year FBT shortfalls still being repaid or

salary advances and salary overpayments that may be occurring concurrently with the FBT

shortfall loan.

Should the loan not be considered a minor fringe benefit, then it is to be considered as an employer

provided fringe benefit. It will therefore count towards an employee’s FBT cap, before salary

packaging for future FBT years, until it has been repaid in full.

Where this occurs, it may lead to a subsequent FBT shortfall if the employee has not considered

this as part of their prospective salary packaging arrangements. If uncertain, employees should

contact Maxxia to adjust, or discuss, their salary package.

4.5. Dispute resolution

4.5.1. Dispute with FBT shortfall calculation

Where the employee (or former employee) is dissatisfied with the calculation of the FBT shortfall

amount, the following procedure should apply:

1. The employee will contact Taxation Services to obtain further details about the recovery and

the reasons for the FBT shortfall.

2. A Principal Taxation Accountant or Senior Taxation Accountant will review the FBT shortfall



calculation and will notify the employee with the outcome of the review.

3. If the employee remains dissatisfied with the calculation, the employee can make a written

request to the Manager, Taxation Services for a formal review.

4. If the employee remains dissatisfied after this formal review, and is of the view that they should

not be liable to pay their FBT shortfall on reasonable grounds, the employee can partake in the

Grievance Process as follows:

a) Taxation Services will provide the employee with an Employee FBT Reallocation Request

template, which will be completed by the employee

b) The employee must write a formal request for reallocation to their SAAS Finance

Director/site CFO or the Director, Financial Accounting in the Department for Health and

Wellbeing (DHW) using the template provided by Taxation Services

c) The employee will send a copy of their letter to their pertinent SAAS Finance Director/site

CFO AND another copy to Taxation Services, via the Taxation Services’ Helpdesk

d) Taxation Services will prepare an internal memorandum to the pertinent SAAS Finance

Director/site CFO or DHW Executive Director advising them of the calculation and any

other facts relevant to their decision

e) Taxation Services will classify the reallocation request to determine whether it is simply

the reallocation of the FBT cap by the employer, which can be endorsed by the Director,

Corporate Services, DHW or the Chief Executive SA Health, or, if it will need to be

ultimately referred to the Treasurer for approval.

(For DHW employees only, the Director, Financial Accounting, will review the FBT

assessment undertaken by Taxation Services, and send a copy of the assessment,

along with any other relevant facts regarding the FBT shortfall, to the relevant

Executive Director of the employee.)

f) The respective delegate will consider the reallocation request letter received from the

employee, in conjunction with the internal memorandum from Taxation Services.

Where the Director supports the employee’s request:

The Director will prepare an internal brief from the Chief Executive Officer (CEO),

LHN/SAAS or the Executive Director within DHW, to the Director, Corporate

Services requesting SA Health reallocate the employee’s FBT shortfall; attaching

information supplied by the employee in making their reallocation request.

Where the Director does not support the employee’s request:

the Director will notify the employee of the outcome of their request in writing; and

provide a copy of this letter to Taxation Services for its records and action.

g) The Director, Corporate Services, DHW will notify the respective Executive Director/ CEO

of the outcome of the reallocation request.

h) Once a final decision has been made by the Director, Corporate Services, the respective

Executive Director, should advise the employee of the decision, along with Taxation

Services.

i) Where Treasurer approval is required, the request must be initially sent to the Chief

Executive, SAH rather than to the Director, Corporate Services.

j) Where the Chief Executive, SA Health support such a request, it will be included in a

combined submission to the Treasurer for all such cases. If such a case is supported

outside of the reallocation of the FBT cap, it may constitute a debt waiver fringe benefit

and incur additional FBT. This would occur in cases where debt recovery actions have

already commenced for current employees.



4.5.2. Dispute with a panel member

Where it is determined that the FBT shortfall is the result of incorrect/inaccurate information or

from services rendered by Maxxia, the employee must contact Maxxia directly in order to

resolve the matter with Maxxia, in accordance with the Maxxia Dispute Resolution Process.

It is important to follow the instructions given to ensure the desired outcome. Maxxia has its

own Employee Ombudsman, who is independent and can review cases without fear or favour,

and it will provide an independent view as to whether an error has been made.

4.5.3. Refusal to acknowledge/repay FBT shortfall

Where a current employee either:

refuses to acknowledge the FBT shortfall after being notified or

refuses to repay all, or part, of the FBT shortfall amount or

is not contactable, after a Final Notice is issued by Taxation Services,

an application will be made to their site Workforce Director for authorisation to commence an

automatic payroll deduction from the employee, in accordance with Section 70 of the Public

Sector Act 2009.

Further disputes, or disputes with former employees, may require the matter to be referred via

Legal and Governance, to the Crown Solicitor’s Office together with:

details of the FBT shortfall and how it arose

copies of all correspondence with the individual including contact details

any reason why the individual is refusing to acknowledge the FBT shortfall/repay the FBT

shortfall, and

a request for advice.

4.6. FBT implications

The recovery of FBT is purely exercising a contractual requirement contained within the

employee’s Salary Sacrifice Agreement (SSA) that states ”all liability including any FBT liability

incurred by the employer in respect of the employee may be deducted by the employer from the

employee’s total annual earnings”. In practice, the amount salary packaged needs to be inclusive

of any FBT, and any shortfall that results from the provision of benefits under a SSA is required to

be met by the employee.

5. Applicability

This procedure applies to all employees (including Medical Officers) entering into Salary Packaging

Arrangements with the SAGSSA.




6. Responsibilities

6.1. Taxation Services

Taxation Services are responsible for:

calculating the amount of FBT shortfall an employee has incurred and forwarding this

calculation to the Maxxia

reviewing FBT shortfall calculations, when requested by an employee

negotiating non-standard payment arrangements of any FBT shortfall, including the issuing of

application forms for requests for financial hardship and assessing their merit

providing the Employee FBT Reallocation Request template, where requested by an

employee seeking a reallocation of their FBT shortfall

notifying Payroll Services to commence payroll deductions for employees who have

acknowledged their FBT shortfall

making necessary amendments to FBT shortfalls, reportable fringe benefits amounts and the

FBT Return, as required

arranging for a tax invoice (post tax) to be raised for the FBT shortfall amount in the name of

the employee

requesting Section 70 of the Public Sector Act 2009 to be invoked on non-responders through

their site Workforce Director, and

seeking advice via Legal and Governance from the Crown Solicitor’s Office in circumstances

where an employee refuses to acknowledge liability, or to repay the FBT shortfall, after all

other avenues have been exhausted.

6.2. Maxxia

Maxxia are responsible for, in accordance with their SLA:

commencing the recovery of FBT shortfalls from current employees, by contacting the

employee and discussing the value of the shortfall, how it occurred and options available for

the employee to repay the FBT shortfall (including information on the financial hardship option

process)

where the employee cannot be contacted via phone, Maxxia will send an email outlining the

value of the shortfall, how it occurred and options available for the employee to repay the FBT

shortfall

sending written correspondence to employees, along with the FBT Shortfall Acknowledgement

and Repayments Authority form

sending employee acknowledgments to Taxation Services to commence payroll deductions to

recover the FBT shortfall, and

sending a list of employees who have not acknowledged the FBT shortfall to Taxation

Services for action and subsequent follow up actions.

6.3. Employees

Employees are responsible for:

repaying any FBT shortfall incurred, as a result of a Salary Packaging arrangement

negotiating directly with the Maxxia if they believe they have provided incorrect salary

packaging data, or the process conducted by the Service Provider has led to the provision of

incorrect salary packaging data upon which the FBT calculations were made

requesting Maxxia or SA Health Taxation Services to provide forms for financial hardship

claims and submitting the required information for the Manager, Taxation Services



providing a formal written request for a reallocation, using the template provided by Taxation

Services and to provide:

one copy to their respective SAAS Finance Director/site CFO, and

one copy to Taxation Services via the Tax Helpdesk;

advising Taxation Services when they are leaving SA Health, to ensure the necessary

arrangements are made for any outstanding FBT shortfall.

6.4. SAAS Finance Director/site CFO and DHW Executive Directors

SAAS Finance Directors/site CFO and DHW Executive Directors are responsible for:

ensuring staff complete a formal written request for reallocation of any FBT

assessing the request based on information received from the employee and Taxation

Services

forwarding supported cases to the Director, Corporate Services, DHW for a decision (or the

Chief Executive, SA Health, should the matter require further escalation to the Treasurer), and

advising employees whether their request has been approved or rejected.

6.5. Site Workforce Directors

Site Workforce Directors are responsible for signing automatic payroll deduction forms to

commence FBT recovery.

7. References/Related Documents

Commissioner of Public Employment Determination 6: Recovery of Overpayments

Recovery of FBT arising from Salary Sacrifice Policy Directive and Procedure

Public Sector Act 2009

FBT Public Hospital and Public Ambulance Service Exemptions and Salary Sacrifice Policy

Directive

Salary Sacrifice information provided by the Office for the Public Sector

Maxxia Customer Feedback Process

Treasurer’s Instruction 5 Debt Recovery and Write Offs’

Treasurer’s Instructions 25 Taxation Policies

SA Health Vendor Creation or Amendment Form

For any further specific taxation queries contact Taxation Services via [email protected] or telephone no. 8463 6776

8. Procedure Sponsor

Director, Financial Accounting, Finance and Corporate Services Division


http://publicsector.sa.gov.au/policies-standards/award-info


http://www.legislation.sa.gov.au/LZ/C/A/Public%20Sector%20Act%202009.aspx



http://publicsector.sa.gov.au/people/salary-sacrifice

http://publicsector.sa.gov.au/people/salary-sacrifice




http://extra.sa.gov.au/ap/user-access/Pages/create-modify-vendors.aspx




Appendix

A Examples

Margaret, John, Mary and Ishmael have incurred FBT shortfalls from their salary package, by not allowing for the private usage of a blue plated motor vehicle they all use to drive home on alternate nights, whilst on call.

Each of them has a $1,000 FBT shortfall and SA Health Taxation Services has provided the advice to Maxxia, for it to request payment of the FBT shortfalls from the employees.

1. Margaret, upon contact from Maxxia, has sufficient funds in her salary packaging account to cover the FBT shortfall, so she advises Maxxia to deduct the full amount from her salary packaging account.

2. John was not aware this would affect his salary package and requests more information, so he is referred back to SA Health Taxation Services for further investigation. SA Health Taxation Services confirms the benefit was calculated correctly and follows up all queries John has about his FBT shortfall and he agrees to acknowledge the FBT shortfall with Maxxia.

John doesn’t have sufficient funds in his salary packaging account to cover the FBT shortfall.

He selects the option to have payroll deductions of 10% of his gross fortnightly deductions

made until the FBT shortfall is fully repaid and returns the appropriate form to Maxxia.

Maxxia then submits the form to SA Health Taxation Services along with the other forms it

has received at the end of August.

SA Health Taxation Services instructs Shared Services SA in September to commence

payroll deductions in the next available pay run.

3. Mary is willing to repay her FBT shortfall, but due to extreme financial difficulties, cannot afford 10% of her gross fortnightly salary. Maxxia refers her to SA Health Taxation Services to discuss the case and she is provided with a form to complete to demonstrate her financial hardship.

Upon review, the Manager, Taxation Services supports Mary’s request for a varied amount and provides her with approval for a specified amount to be paid each fortnight, until the FBT shortfall is repaid in full.

Mary returns the acknowledgement form and approval for modified payments to Maxxia.

Maxxia then submits the form to SA Health Taxation Services, along with the other forms it

has received, at the end of August.

SA Health Taxation Services instructs Shared Services SA in September to commence

payroll deductions in the next available pay run.

4. Ishmael has followed a similar process to John; however, unlike John is still in dispute regarding the FBT shortfall. The case is not referred back to Maxxia and Ishmael is provided with an Employee FBT Reallocation Request template.

Ishmael completes the Employee FBT Reallocation Request template with his reasons for

dispute and submits his request to his site based Finance Director, plus provides a copy to

SA Health Taxation Services.

Following a fair and formal process, Ishmael’s case is considered by the appropriate

delegate, but his request to have the FBT shortfall reallocated is not supported. He is

advised in writing by his employer of the decision and SA Health Taxation Services sends

him a Final Reminder, requesting he acknowledge the FBT shortfall within 21 days.

As the case no longer involves Maxxia, Ishmael returns his acknowledgement form back to

SA Health Taxation Services and elects for 10% of his gross fortnightly salary to repay his

FBT shortfall.

SA Health Taxation Services then sends the form to Shared Services SA and payroll

deductions commence in the next available pay run.