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REMOTE AREA BENEFITS
What is Remote Area Housing Benefits?
Remote Area Salary Packaging is an additional benefit available to people who work and live in an area that is deemed as remote by the Australian Tax Office (ATO). There are other criteria to meet to access these benefits, including industry and job role.
What are the benefits of Remote Area Salary Packaging?
Depending upon your employer and eligibility, you may be entitled to package the following items:
- Rent (your share of the total rent paid)
- Your Mortgage Interest
- Your Combustible Fuels expenses (eg electricity)
- Travel
Your Organisation determines which of the above benefits are available for you to access if you meet all of the criteria as set by the ATO. We are able to review your situation, identify if you are eligible to access these benefits and assist in the set-up process where applicable.
How does Remote Area Housing Benefits Salary Packaging work?
Salary Packaging Remote Area Housing Benefits is a way to reduce the amount of tax that you pay by paying certain expenses, as referenced above, through Salary Packaging. This means the tax you pay is calculated on a reduced income.
Remote Rent Example:
Jack and Jane are on the same income however Jack is salary packaging his rent through Remote Area Housing Benefits and Jane is not.
| Particulars | Jane | Jack |
| Gross Income | $55,000 | $55,000 |
| Less Salary Packaged Expenses (eg Rent) | – | -$9,000 |
| Assessable Income | $55,000 | $46,000 |
| Deductions | – | – |
| Taxable Income | $55,000 | $46,000 |
| Income Tax | $9,422 | $6,427 |
| Medicare Levy (2%) | $1,100 | $915 |
| Net Pay (per Annum) | $44,478 | $38,658 |
| Minus Expenses (e.g. Rent) | $9,000 | – |
| Net Disposable Income (per Annum) | $35,478 | $38,658 |
| Net Disposable Income (Weekly) | $682 | $743 |
With Jack salary packaging his rent through Remote Area Housing Benefits, he pays $3,180 per year tax less than Jane which means more money in his pocket.
Remote Mortgage Example:
Jack and Jane are on the same income however Jack is Salary Packaging his Mortgage Interest through Remote Area Housing Benefits and Jane is not.
| Particulars | Jane | Jack |
| Gross Income | $90,000 | $90,000 |
| Remote Area Benefits packaged (e.g. Mortgage Interest) | – | $12,500 |
| Fringe Benefits Tax (FBT) | – | $6,005 |
| Less Salary Package (incl. fees) | – | -$18,705 |
| Assessable Income | $90,000 | $71,294 |
| Tax & Medicare Levy (2%) Payable | $22,732 | $16,143 |
| Net Pay (per Annum) | $67,268 | $55,151 |
| Less Items to be paid in post-tax dollars (now packaged) | $12,500 | – |
| Net Disposable Income (per Annum) | $54,768 | $55,151 |
| Net Advantage (per Annum) | – | $383 |
With Jack Salary Packaging his Mortgage Interest through Remote Area Housing Benefits, he pays $383 per year tax less than Jane which means more money in his pocket.
Combustible Fuels Expenses (eg: Electricity)
What is Remote Area Fuel?
Remote Area Salary Packaging is an additional benefit available to people who work and live in an area that is deemed as remote by the Australian Tax Office (ATO). Depending on your personal circumstances and the industry you work in you may have the opportunity to Salary Package your fuel. Fuel refers to combustible fuels – these include electricity, gas, firewood etc. The benefit of Remote Fuel is that you can Salary Packaging 50% of the fuel costs without incurring Fringe Benefits Tax. While Fringe Benefits tax is still payable in regards to a portion of your packaging.
Travel
What is Remote Area Travel?
Depending on your personal circumstances and the industry you work in you may have the opportunity to Salary Package your travel. The benefit of Remote Travel is that you can Salary Packaging 50% without incurring Fringe Benefits Tax. While Fringe Benefits tax is still payable in regards to a portion of your packaging.
What can you claim under Remote Travel?
- Air Fares
- Meals (on route only)
- Accommodation
- Travel to and from in your own car
- Hire car
How can we help you?
Contact us today to organise an initial appointment with a Salary Packaging Specialist.
The specialist can provide a free financial assessment and evaluate the impact on your individual circumstances.
We provide a holistic service and can assist you in all areas of your financial life.