Salary packaging is an arrangement between you and your employer that allows you to pay for certain items and services from your pre-tax salary that you would otherwise pay for after tax. This will reduce your taxable income and ultimately put more money in your pocket.
What can I package?
There’s a range of benefits that can be included in your salary package. It just depends on your employer.
At Chifley, we specialise in providing services to rural and remote areas, unlocking the benefits available to employers and employees including:
Remote area benefits
Employees living and working in an area deemed to be remote by the ATO may be able to:
- Pay 50 per cent of rent or mortgage interest from pre-tax income.
- Claim 50 per cent of electricity and gas bills.
- Claim 50 per cent of holiday travel costs from a remote area.
Employees that relocate to take up a role with their employer may be eligible for benefits that include:
- Pay up to 12 month’s rent from pre-tax income.
- Claim moving costs.
- Claim expenses relating to the sale of the old home and purchase of a new home in the process of relocating.
Salary packaging car expenses is a great way to reduce tax. The two most common arrangements are:
- Buying a new car -Novated Leasing is one of the most cost effective ways of buying a new car. All the costs are paid out of pre-tax salary including lease payments, fuel, tyres, insurance and registration. Payments are structured to eliminate any FBT.
- Packaging an existing car – Associate Leases enable employees to package up the running costs and depreciation of up to three currently owned vehicles in any one family subject to certain criteria.
How can I access these benefits?
We work with your employer to introduce benefits like Salary Packaging into your company.
To find out if salary packaging is available to you, speak to your employer or union delegate today.