Do you work and live in an area that is ‘secluded’ from civilisation?
Do you know you can pay half of your rent or the interest charged on your mortgage before the tax man takes his cut?
To be entitled to this benefit you must live and work in a designated remote area. According to the ATO a remote location is “a location that is not in – or adjacent to – an eligible urban area.”
For example, if you own your home and your residential property is in a non-remote area, say Noosa, and you fly-in/fly-out to a remote area (Blackwater, Airlie Beach) you are not entitled for Remote Area Benefits.
If you are renting you can pay 50% of your rent before tax and the other 50% you will pay after-tax, saving money you pay to the tax man.
You are eligible for other remote area benefits, such as:
- Packaging the interest charged on your mortgage
- Packaging your electricity, gas bills, etc.
- Packaging expenses you might incur when travelling to see your family or on holidays.
| EXAMPLE | ||
|
Particulars
|
Using your Remote Area Benefits
|
Not using your Remote Area Benefits |
| Income Before Tax | $80,000.00 | $80,000.00 |
|
Less your 50% of Rent Payments (Rent $460/week) |
$11,960.00 | $0.00 |
|
Income that you pay Tax on ($80,000 – $11,960) |
$68,040.00 | $80,000.00 |
| Money that the Tax Man Takes | $13,940.00 | $18,066.00 |
|
Your Tax Savings ($18,066 – $13,940) |
$4,126.00 | $0.00 |
Give us a call, to see if your employer offers Salary Packaging & if you are entitled to Remote Area Benefits.
We are here to help you start saving today.