Salary package your mortgage, rent, personal loan and save!
You can salary package up to $9,010 for living expenses each Fringe Benefits Tax (FBT) year if you work in Healthcare and $15,900 if you work for a Not-For-Profit, Disability, Aged or Community Care Organisation or a Rebatable employer.
All full-time and part-time employees are eligible to salary package.
You can package up to 100% of your salary.
Termination payments cannot be salary packaged.
You can salary package regular expenses such as mortgage or rent, where the payment amount doesn't change, expenses that have variable amounts such as credit card repayments. or a combination of both.
You can even package a combination of these items, as long as you don’t exceed the $9,010/$15,900 cap per FBT year.
Here’s a breakdown of the items you could package.
Mortgage or loan repayments (such as a personal loan)
Credit card repayments
Smartsalary Salary Packaging and Meal Entertainment Card
If you aren’t packaging an ongoing expense like mortgage or rent, the easiest way to salary package your living expenses is by using our ATO-approved Smartsalary Everyday Purchase card. You can save on groceries, bills, clothing, and just about anything else.
For more information about the Smartsalary Everyday Purchases Card, please click here.
General Living Expenses
You can send in a claim form and proof of payment for the following items:
* Items attract GST.
Sign up for salary packaging online via our mobile website and nominate an amount you wish to package – we’ll get your employer to set this aside from your pre-tax salary each pay.
You will need to provide supporting documents when you start:
|Mortgage or loan claims||
|Credit card claims||
|General living expenses claims or ad hoc expenses||
Packaging towards the tax-free cap will result in a Reportable Fringe Benefit Amount (RFBA) on your annual PAYG summary.
RFBAs do not affect your income tax liability but the ATO will take them into account when determining certain other obligations and entitlements. For more information in this regard please visit the ATO website.
It is particularly important to note that if you have a HECS/HELP debt it is likely that your repayment schedule will be affected by the RFBA arising from salary packaging the tax-free cap benefit. If you do have such a debt please refer to the further information below.
Your HECS/HELP repayments are based upon your ‘HELP Repayment Income’, which includes any Reportable Fringe Benefit Amount.
By default, your employer does not take RFBAs into account when calculating your periodic HECS/HELP deductions throughout the income tax year. This means that if you lodge an annual tax return containing an RFBA you could be faced with an additional lump-sum HECS/HELP payment requirement when you receive your ATO notice of assessment for the relevant year.
To avoid this, you can complete a Withholding declaration – Upwards variation form and provide it to your employer so that additional HECS/HELP deductions can be taken throughout the year. To calculate the amount of HECS/HELP to be withheld, follow these steps: