Salary Packaging Benefits

What are the benefits I could salary package?

The types of benefits and the amount you can salary package depends on your employer and industry you work in. Select your industry group from the tabs below.

Benefits

Healthcare & Charity

includes public and not-for-profit private hospitals, PBIs, non-profits, aged care and disability support services.

Corporate / Government / Education

includes private sector, public school teachers, mining and public sector.

Rebatable & Others

includes private schools, clubs, trade unions or association and eligible not-for-profit or religious organisations.

How much could salary packaging save me?

Our calculator can take the guesswork out of salary packaging and give you a guide to your potential savings.

Calculate your savings today

How are salary packaging benefits taxed?

Salary packaging benefits are taxed via Fringe Benefits Tax (FBT). Generally, when your employer pays you a salary, you must pay income tax if you earn above the tax-free threshold. But if your employer was to pay you in another way, such as giving you a personal car or a fancy watch, then these benefits would be subject to FBT, not income tax. FBT is set by the ATO and is currently 47%, which is higher than the highest marginal tax rate, so you can imagine that employers and employees alike would prefer to avoid paying FBT! Here’s where salary packaging could be beneficial:

If you work in healthcare or non-profit, you have access to an FBT exemption cap, which means you can access benefits up to a capped amount and not be subject to FBT.

Additionally, there are benefits that are completely exempt from FBT and available to all industries; these are typically benefits you can claim on tax, such as a laptop for work.

Salary packaging superannuation and novated leases are taxed at a concessional rate and considered concessional fringe benefits.

Capped Fringe Benefits

Examples of capped benefits for health and charity employees include:

Living Expenses
Up to $9,010 for health employees and $15,900 for charity employees each FBT year.
Learn more.

Meal Entertainment and Venue Hire
For both health and charity employees, an additional combined cap limit of $2,650 each FBT year.
Learn more.

Exempt Fringe Benefits

Examples of exempt or uncapped benefits include:

Work-Related Expenses
Learn more.

Self-Education
Learn more.

Home Office Expenses
Learn more.

Concessional Fringe Benefits

Some salary packaging benefits attract a concessional amount of FBT. This means they are taxed at a different (usually lower) rate to other Fringe Benefits or your salary. Examples of concessional benefits include:

Novated Leasing
Salary package a car and you could potentially save thousands in tax each year.
Learn more.

Additional Superannuation
Boost your retirement fund for the future and you could save on tax in the present.
Learn more.

What are Reportable Fringe Benefits?

A reportable fringe benefit amount reflects the value of your salary packaging across an FBT year – that is, the gross salary you would have had to earn to pay for your chosen salary packaging benefits with after-tax income. While reportable fringe benefits are not taxable income, they can affect the calculations for any adjusted income amounts, including HECS-HELP debt repayments and other government-means tested programs. We recommend you seek independent financial advice on what impact this could have to your personal circumstances. For more information on how reportable fringe benefits work, click here.

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.

Only one laptop and one iPad or tablet can be salary packaged per FBT year and must be used primarily for business purposes.

Additional superannuation contributions from pre-tax salary are subject to 15% contributions tax. The taxation of additional superannuation contributions via salary packaging may differ from the taxation of additional superannuation contributions from post-tax salary. Additional superannuation contributions will be reported on an employee’s annual payment summary and will be used to assess an employee’s eligibility for a number of government benefits, or liability for certain payments. Caps for concessional superannuation contributions apply – please refer to www.ato.gov.au for up to date information.

Important Information: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may pay and/or receive commissions in connection with its services.

Maxxia Pty Ltd | ABN 39 082 449 036.