What is included in an office holder's total remuneration and how is his/her cash salary calculated?

Relevant offices

Total remuneration (TR) is defined in the relevant determination applying to the particular office holder (i.e. Full-time Offices, Principal Executive Offices, Specified Statutory Offices, Departmental Secretaries and Judicial and Related Offices).

An office holder's cash salary is the component of TR that remains when all other payments and benefits, including the Employer Superannuation Contribution, are honoured. Cash salary should not be confused with the superannuation salary determined by the Tribunal for members of defined benefit schemes.

Cash salary equals TR, less the Employer Superannuation Contribution, less all payments and benefits included in the office holder's remuneration package (other than those specifically excluded in accordance with the relevant determination).

The process is outlined in the diagram below (note that slightly different superannuation arrangements apply to PEOs - see "How is cash salary calculated for a PEO"):

minus

The Employer's Superannuation Contribution*

minus

Other payments and benefits e.g. allowances, motor vehicle, parking, fringe benefits tax and any salary sacrifice payments e.g. additional superannuation contributions.

equals

Cash salary

* The Employer's Superannuation Contribution is defined in the Tribunal's determination.

Essentially it is:

for members of PSSap - 15.4% of ordinary time earnings (OTE);
for members of other accumulation schemes - the compulsory employer superannuation contribution that must be made to the fund; and
for members of a Commonwealth defined benefit schemes (e.g. CSS/PSS) - a notional value calculated as 15.4% of the Superannuation Salary.

What is included in an office holder's total remuneration and how is his/her cash salary calculated?

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