If you could get more out of your salary, why wouldn’t you?
No one likes paying more tax than they have to, right? Well if you salary package with RemServ, you could potentially pay less tax. How does it work? If you're an eligible not-for-profit employee, you could pay for everyday expenses like utility bills and mortgage or rent repayments before you get paid your usual salary. Using pre-tax money means you could save on income tax, and with some of these expenses already taken care of, it could leave you with more money for the things that are important to you.
Like to know more? Read on.
Full Fringe Benefits Tax (FBT) benefit items
Full FBT benefit items are available to eligible not-for-profit employees with access to the FBT exemption cap. With Full FBT benefits there's a limit to how much you can salary package each Fringe Benefits Tax year (1 April - 31 March).
Those everyday living expenses sure add up, but with salary packaging you could pay for them before you get taxed! Here’s some examples of what you could package:
- Mortgage or rent
- Personal loan repayments
- Insurance premiums
- School fees
If you live and work in an ATO approved remote area, you might be eligible for remote area benefits that cover the cost of interest you pay on your mortgage, rent you pay, electricity or gas, and purchasing a property or land to build a home. Talk to us to find out if you qualify.
The Meal Entertainment benefit lets you salary package the cost of meals when you eat out with friends, family and associates at restaurants, cafes, pubs, clubs and bistros that accept Mastercard. This $2,650 cap is over and above the everyday living expenses cap and could be a great way to get more from your salary.
FBT exempt benefit items
You could also take advantage of a range of uncapped benefits.
With salary packaging, you can use funds from your pre-tax salary to make additional contributions to your superannuation. This not only reduces your taxable income, meaning you could save on tax, but could also boost your retirement nest egg.
Noting that the total annual limit of $25,000 (including your employer's contribution) before excess contributions tax becomes payable.
You could save thousands by salary packaging a car through a novated lease.
With novated leasing, one regular payment is drawn from a combination of your pre-tax and post-tax salary each pay that covers car payments, fuel, registration, insurance and servicing.
When you work, continuous learning is important. So if you could, why wouldn’t you pay for your work-related self-education expenses with pre-tax dollars?
From home office items and travel costs for work, to electronic devices and working from home expenses - you might be surprised at the range of work-related expenses you could be eligible to package*.
You could also salary package professional memberships, like your union fees, as well as the cost of your work-related newspapers, journals or magazines.
Catch the bus to work on the Translink network? You could salary package the cost and pay for your daily commute with pre-tax dollars.
We can help you make sense of salary packaging
For most people, understanding the benefits of salary packaging can be daunting. Our experts could break it down for you – providing charts, calculators and videos to help demonstrate the potential benefits of salary packaging.
Ready to get started or want to find out more?
Select a time for us to contact you, call us on 1300 30 39 40 or complete the below form.
*Before salary packaging any portable electronic devices, your employer must confirm it is used for work-related purposes more than 50 per cent of the time.
Public benevolent institutions have a capping threshold (being a grossed up taxable value of $30,000) placed on the amount of fringe benefits they may provide to employees each FBT year without FBT applying. The maximum amount of $15,900 has been determined using a gross up rate of 1.8868 and assumes that the payments are not subject to GST. Where the payments are subject to GST this amount will be reduced to $14,421 and the gross up rate of 2.0802 should be used to determine the grossed up taxable value of the benefits provided.
The Meal Entertainment benefit has a maximum annual cap limit of $2,650. This will appear as a reportable fringe benefit on your Payment Summary each year which will be included in a number of income tests relating to certain government benefits and obligations. This cap is separate from the FBT cap limits for everyday living expenses.