Benefit by Salary Packaging

As an employee of what is called a Rebatable Employer, you’re entitled to take advantage of some significant taxation reducing benefits.

Depending on your employer’s policy, you can salary package Non Cash Benefits (NCB) up to a ‘grossed up’ value of $30,000, which translates to spending $15,900 on Reportable Fringe Benefits during each FBT Year, and receive a rebate (discount) of 47% off the Fringe Benefits Tax that applies to the expenses.

Translated into plain English, this means you can pay for some of your living expenses from your pre-tax salary.

 

Reportable Fringe Benefits

The following items can be packaged as part of your $30,000 cap. 

  • Mortgage Repayments
  • Private Home Rental
  • Meal and Entertainment expenses (Separate cap effective from 1 April 2016)
  • Living Expenses
  • School & University Fees, etc.

Exempt benefits

The following items can be paid from your pre-tax salary and not impact your cap.

  • Work Related equipment such as Laptops, Mobiles & Electronic Devices
  • Superannuation Contributions
  • Airport Lounge Membership
  • Professional Journal & Body Costs

Concessional benefits 

The following car leasing programs can be tailored to suit your circumstances and can be part of your cap or in addition to it.

  • Novated Motor Car Lease
  • Associate Motor Car Lease
  • You can learn more about our Car Lease products by clicking here.

To get more information on any of the above, contact our office on 03 5229 4200 or complete the following enquiry form and we’ll contact you.

Click here to go to our Frequently Asked Questions page specific to your employer type.

 

Using the example of Gavin, who is a Maths teacher at the local Grammar school and has a salary package of $80,000 per annum before Super. 

His take home pay was $2,340 every fortnight before he paid the mortgage on his house, which is $610 every fortnight. Therefore after he paid his mortgage, he had $1,730 left.

We set up his salary package to pay his mortgage from his pre-tax salary by using his available cap and included the FBT liability after the rebate of 48% was applied. His take home pay after his mortgage was paid went to $1,842 every fortnight.

Effectively this meant that his pay increased by $112 every fortnight, which equates to an extra $2,912 per year. Additionally, if Gavin paid the amount he has saved against his mortgage, he would cut about 8½ years off it.

Contact us and we’ll set you up to benefit in the same way. Ask us also about having a Novated Lease included in your salary package, and you’ll save even more tax.

Contact us and we’ll set you up to benefit in the same way.