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TRP or Total Remuneration Package is the term that covers Base Salary plus benefits. They can be made up of a lot of different aspects depending on the company, industry and indeed on the circumstances/requirements of the employee.

Simple and standard packages are made up of a base salary plus a minimum Superannuation contribution currently 10.5%, and which will continue to incrementally rise at 0.5% each year until it reaches 12% in 2025.

Examples: John is an employee who’s offered a TRP of $100,000. As this amount includes superannuation payments, Johns’ salary will be reduced to account for his 10.5% superannuation contribution.

Jill is an employee who’s offered a base salary of $100,000, plus super. Her 15.4% superannuation contribution won’t be deducted from her salary when she’s paid, but will be paid in addition to it.

Some TRP’s can include company cars, car allowances, salary sacrificing, mobile phones, laptops, gym memberships, extra annual leave, uniforms and some companies even offer their employees the use of a masseuse 2 days a week.

Superannuation is the main component captured in TRP above Base Salary.

With the 0.5% increase of superannuation from 1 July 2022, employers are reminded to consult with their employees under TRP as their net take-home pay may differ if you do not intend to increase their total remuneration. Alternatively, employers can choose to not change their employees’ take-home pay and simply pay the additional 0.5% into employee superannuation funds.

Please contact your accountant or the ATO if you require advice on how these changes impact your organisation.