Salaries and remuneration

Fringe Benefit Tax Exemptions

The ATO has tightened the definition of who can be considered a religious practitioner with eligibility to receive tax exempt fringe benefits (e.g. NCB and related allowances).

We ask that all churches review the documents and link below which contains guidelines to help churches / employers decide whether their personnel qualify as religious practitioners.

Should you determine that any personnel no longer fits the ATO criteria for religious practitioner, you will need to negotiate a revised contract that excludes tax exempt fringe benefits. A basic contract template is available for such employees – please contact the Payroll department (payroll@pcnsw.org.au) for further assistance.

Copy of letter from M&M sent to all churches in September 2023

Eligibility for FBT exemptions (non-cash benefits) document

Link to ATO site: Taxation Ruling TR 2019/3

Eligibility declaration form for Sessions / Committees

Stipends and salaries

The stipends, salaries and allowances payable to ministers, home missionaries and deaconesses are shown in the following document/s for the year/s indicated.

Stipends & Salaries explained (click here for video link)

2024 Salaries, Stipend and Allowances

2023 Salaries, Stipend and Allowances

Fringe benefits

The following links provide an explanatory paper on Fringe Benefits for ministerial personnel and congregations in the Presbyterian Church NSW, and a spreadsheet to calculate GST recovery on fringe benefits.

Fringe Benefits explained (click here for video link)

Centrelink payments

Due to recent ATO and Centrelink changes, Ministry and Mission is no longer able to offer individual advice regarding reportable income or benefit applications. However, to assist our personnel who have questions about these topics, we have sought information from a professional tax consultant, available here.

Part-time arrangements

Frequently, churches want to engage ministry personnel on a part-time basis. These might be additional personnel to expand a ministry team or, perhaps, people to serve in smaller churches to help them grow. A spreadsheet is available upon request from the Associate Superintendent to help churches pro-rate full-time rates to part-time opportunities.

Accommodation arrangements

The normal remuneration package for a minister or a home missionary includes some provision for accommodation. This may be through: (i) the rent-free occupation of a house owned by the church; (ii) the rent-free occupation of a house leased by the church; or (iii) a financial arrangement with the minister to enable him to rent or buy a home of his choice.

Relevant resolutions of the Assembly are explained in these Manse Requirements

Alternative ways of providing accommodation are described here as accommodation-options.

Where a church wishes to build a new manse or consider the adequacy of a house that might be purchased as a manse, the Committee of Management should work through this paper: Manse Design Considerations.

Superannuation for ministers, deaconesses and home missionaries

Superannuation for Presbyterian ministers, deaconesses and home missionaries is based on the gross salary or the undivided stipend paid to them (i.e. their salary or stipend before consideration of any amounts sacrificed in favour of superannuation or other fringe benefits).

Superannuation is administered by AMP if no other choice is made. Contributions are collected and processed monthly by the Church Offices directly debiting the congregation or agency’s bank account. A schedule is mailed to all treasurers prior to the start of each calendar year showing the Minister’s stipend (based on Ministry & Mission records) and the contributions for:

Employer SGC @ 11%.
Employer additional contribution @ 6%.
Employee’s post-tax contribution (if any) @ the Minister’s nominated rate.
Salary sacrifice (if any) @ the Ministers nominated rate.

Ministers (in either inducted or appointed roles), deaconesses and home missionaries receive both the employer SGC (11%) and the additional employer contribution (6%). Pastoral Assistants receive the employer SGC (11%), and their church may optionally pay the employer additional contribution (6%).

Where ministers are paid directly by Church Offices, the employee contribution and salary sacrifice (if any) is processed by Church Offices payroll bureau. If a church changes ministers, or there is a change to the appropriate deductions, please contact jperry@pcnsw.org.au to cancel or commence the superannuation direct debit.

AMP Superannuation – answers to questions

AMP has been the default manager of superannuation funds for employees of the Presbyterian Church. Many questions are now being asked about practices adopted by AMP representatives. Click here to read some AMP responses to these questions.

Payments for Pulpit Supply

We are currently in the process of updating pulpit supply information. If you need to chat with someone about these matters, please contact M&M and we can connect you with appropriate personnel who can assist.