There are a range of benefit items to choose from
The ATO allows Salary Packaging to include a wide range of items, but those available to you will depend on your employers industry and Salary Packaging Policy. If you want to check the items that are available at your workplace, contact your employer or call us now.
If you work for a qualifying organisation, such as a charity or Public Benevolent Institution (PBI), you can contribute up to $15,900 per Fringe Benefits Tax (FBT) year from your pre-tax salary. This can be used for everyday expenses such as your mortgage or rent, bills, shopping and petrol, and significantly reduce your annual tax bill. The limit reduces to $9,010 if you work for a public or private, not-for-profit hospital or the ambulance service.
There are two ways you can use this money
If you have items that you need to pay for that are a fixed amount such as your mortgage, rent or even loan payments, we can make sure these bills are paid on your behalf. You can can choose one or a few items to be paid for this way.
- Mortgage Payments – If you’re the owner-occupier of your own home, then including your mortgage payments could be an option you want to consider.
- Loan Payments – Your personal loan can be for anything from consolidating your debts, making a special purchase or going on holiday.
- Rent Payments – Making your rent payments with your pre-tax funds means you don’t have to remember to pay the landlord, we do it for you.
- School Fees – You could pay for the cost of your children’s education with your pre-tax salary by including this option in your Salary Packaging.
If you have items that you need to pay regularly but the amount varies (such as your credit card), you can still include this in your Salary Packaging. But instead of us paying this on your behalf, you confirm the amount you have spent by making a claim and we pay the money back to you from your pre-tax salary.
A Flexible Solutions Card
The easiest and most flexible way to use your money is to have your funds added to a Solutions Card. If you choose this as a Salary Packaging option, you don’t need to decide how you are going to spend the money. It’s simply added to your card and you pay for whatever you need. This can be groceries, bills, clothing and just about anything else. It works like a VISA debit card and can be used worldwide, wherever VISA is accepted.
As well as the tax-free limit, you can contribute up to $2,650 per FBT year additional to this for entertainment benefits. This includes meals at restaurants and cafes, venue hire for a function or social event and holiday accommodation. Your $2,650 allowance must be used each FBT year and can’t be carried over to the following year.
If you choose to spend your Entertainment Benefits on venue hire/holiday accommodation you pay for these items first, and then make a claim for the money to be paid back to you.
If you choose to spend some or all of your Entertainment Benefits on meal entertainment, your pre-tax salary can be added to an Entertainment Card. This gives you the flexibility to pay for meals whenever you want. The card is accepted wherever the VISA sign is displayed, which means you can use it overseas too. So if you prefer to have your pre-tax salary readily available then an Entertainment Card is the option for you.
Remote area benefits
If you live and work in a remote area, you may be able to save tax on a number of personal expenses. These include:
Remote area rent
If you rent a property in your name, you can pay 100% of the rent from your pre-tax salary, with 50% of that payment exempt from FBT.
Other remote area benefits
You may also be able to benefit from packaging the following items:
- Remote area mortgage interest
- Remote area fuel
- Remote area holiday travel
Other deductible expenses
These are items that you would usually claim through your tax return. By paying for them from your pre-tax salary, you can bring the tax benefit forward. You still get the same amount, but without the delay, giving you a little more money throughout the year.
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