Salary package everyday items to save on tax and increase your take-home pay
Salary packaging for government employees is approved by the ATO and allows you to use your pre-tax salary to pay for certain items. This could lower your taxable income, reduce the tax you pay, and increase your take-home pay.
The items available to you will depend on what your employer chooses to offer under their salary packaging program.
Car leasing, also known as novated leasing, is one of the easiest and most cost-effective ways to buy and run a car. In fact, you could save thousands over the lifetime of your lease.
If you use a financial planner or a tax advisor, you could salary package the fees and save.
There are lots of items you can package to help you save on work-related expenses.
Studying so that you can get ahead in your job? Salary package the costs and you could save.
If you have income protection insurance, you may qualify to package this benefit.
You can use your pre-tax dollars to pay for the cost of childcare at approved childcare centres.
Whether you travel for work or personal reasons you can salary package your airline lounge membership.
Mark earns $90,000 per year and has recently purchased a laptop for $2,200. By salary packaging his new device,1 he saved $890 on income tax and GST.1,2
Sandra earns $80,000 per year and is salary packaging $3,500 of additional superannuation contributions annually. This saves her $680 in income tax each year thanks to salary packaging.2
Jessica earns $75,000 per year and salary packages a new Hyundai Tucson. She saved thousands on the purchase price, plus continues to save over $2,200 in income tax each year on running costs.3
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and, seek appropriate legal, financial or other professional advice based upon your own particular circumstances. The availability of benefits is determined by your employer. Conditions and fees apply.
1 A portable electronic device can only be salary packaged if it is used primarily (over 50%) for work purposes. Tax savings achieved through salary packaging will depend on your income tax bracket and personal circumstances.
2 Savings example is for illustrative purposes only and is based on the income tax rates for the 2021/22 financial year. Your actual savings will depend on your income tax bracket, the GST processing method nominated by your employer, administration fees payable under your employer’s salary packaging plan and your personal circumstances.
3 Novated lease example is for illustrative purposes only. Calculations are based on the income tax rates for the 2021/22 financial year and the following assumptions: vehicle purchase price: $37,967 (current as of November 2020), living in NSW 2560, salary: $75,000 gross p.a., travelling 15,000 kms p.a., lease term: 60 months, using Net GST processing method and Employee Contribution Method for FBT purposes. A fortnightly lease repayment of $383 is payable over the lease term. Savings on the purchase price are a result of the buying power discount available through our novated leasing division, Smartleasing (which is dependent upon the vehicle purchased and the state or territory in which the vehicle is purchased), and the fact that there is no GST to pay on the purchase price (as GST is not payable on a vehicle financed through a novated lease). The running costs savings figure quoted includes budgets for finance, fuel, servicing, tyres, maintenance, Vero by Suncorp comprehensive motor insurance and re-registration over the period of the lease. Your actual savings will depend on your income tax bracket, the GST processing method nominated by your employer, administration fees payable under your employer’s salary packaging plan, the negotiated Smartleasing discount on your chosen vehicle and your personal circumstances. Vehicle residual, as set by the Australian Taxation Office, is payable at the end of the lease term. The exact residual amount will be specified in your vehicle quote.