Salary Packaging is a way of restructuring an employee’s income to reduce the amount of tax that they pay.
Approved by the Australian Tax Office (ATO), Salary Packaging means your employees can pay certain expenses out of their salary before they pay tax. This means the tax they pay is calculated on their reduced income after the nominated expenses are paid.
You can start Salary Packaging at any time throughout the year, what you can package depends on your employer but some of the items are:
- Novated Leases (purchasing a car & running costs)
- Associate Leases (existing car & running costs)
- Additional Superannuation
- Airport Lounge Membership- Business Travel
- Financial Advice
- Portable Electronic Devices for Work
- Professional Memberships and Subscriptions
- Relocation Expenses
- Self-Education Expenses
- Tools of the Trade
- Work Related Travel Expenses.
- Remote Area Housing Benefits: Rent, Mortgage Interest, Holidays & Fuel (gas, wood, electricity)
- Everyday Expenses – CAP Items (Groceries, Utility bills, Rates etc)
Some common questions we get asked are,
I’m not sure if my employer offers salary packaging?
How much could I save?
Can I change my Salary Packaging arrangements?
What happens if I leave my Employer?
If you have any questions or need help setting up Salary Packaging to start saving tax give us a call today 07 5451 0022.
