Regular Payments
Regular payments will be made from your pre-tax salary deductions towards expense payments that are both regular and fixed in amount. Once you have provided a Third Party Payment Form and any applicable substantiating documents (eg. a supplier invoice) the expense payment will be made on a regular basis directly to the third party supplier.

All direct third party payments made by Southgate must be made via Electronic Funds Transfer (EFT). Where a third party supplier does not have EFT facilities available, the benefit payment must occur as a reimbursement.

Ad Hoc Payments
Ad hoc payments are made when:

• The timing or amount of an expense is irregular or unknown (eg. vehicle fuel expenses); or
• Funds must be collected towards an expense that will be billed in the future (eg. school fees); or
• You incur an expense that is unexpected (eg. vehicle accident repairs).

Ad hoc payments will be made by Southgate to a third party supplier via EFT once substantiation has been received.

Where applicable, Southgate will allocate and retain some of your pre-tax salary deductions towards the payment of any ad hoc expenses, so that funds are available for expense payments to be made in a timely manner once the expense has been incurred and billed and any required substantiating documents are provided.

Reimbursements
Benefit payments that do not occur on a regular basis, or vary in instalment amount, must be paid directly by you and claimed as a reimbursement. Upon receipt of a completed and signed Reimbursement Claim Form and the appropriate substantiation, Southgate will process the reimbursement. If the form is not completed in full, or is not accompanied by the appropriate substantiation, your claim will not be processed until both requirements are met.

Reimbursements are processed in full or regular instalments based on the available funds in your salary package and any regular payments already scheduled.

Fringe Benefit Tax Payments (if applicable)
The Taxable Value Report further breaks down the total taxable value on a per employee basis into the type of fringe benefit provided e.g. motor vehicle expenses and expense payments etc.

Reportable Fringe Benefits Amount (RFBA) Report
Southgate budgets an amount to be deducted each paycycle to meet the expected FBT liability based on the benefits you wish to package. Deductions are made from your pre-tax salary, except where you use the Recipient Contribution Method (RCM) under a Novated Lease to eliminate your FBT liability (in which case the FBT is offset by the payment of a post-tax salary deduction). Your employer’s Payroll Department retains the FBT deductions each paycycle towards your total budgeted FBT liability incurred, and periodically reports and remits your actual FBT liability amount to the Australian Tax Office (ATO).

Generally if your actual FBT liability incurred is greater than FBT deductions made, you will be required to reimburse your employer for the shortfall in FBT funds. If your actual FBT liability incurred is less than FBT deductions made, your employer should retain these surplus FBT funds until termination of your salary package or employment, whichever occurs first, as they may be required towards FBT incurred by fringe benefits payments in a subsequent FBT Year.