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How do I claim?

Three ways to claim your salary packaging benefits

1. Set up automatic payments where possible

The easiest way to claim benefits is to set up automatic payments for items such as mortgage, rent or credit card payments. This allows us to take care of it all for you. And you avoid any extra paperwork.

Once you've provided initial documentation to verify the expense (e.g. home loan records), your job is done. 

2. A Salary Packaging Payment Card makes it easy

For living expenses, such as groceries and clothing, the Salary Packaging Payment Card is a convenient option.

You use it like a credit card - except the funds are drawn from your salary packaging account. Just swipe, enter your PIN and go.

3. How to submit a paper claim

If you don't have a Salary Packaging Payment Card - or if you've already paid for the item - you can submit a paper claim for reimbursement.

Please remember to always keep your proof of purchase (typically a tax invoice or receipt).

  • visit the forms section and download a claim form
  • complete the claim form and attach your proof of purchase
  • upload your documents using our form upload tool, email to info@maxxia.com.au or mail to: Maxxia, Locked Bag 18, Collins Street East, Melbourne, Victoria 3000

Once received, we'll process your claim within 2-5 business days and deposit the funds from your salary packaging account into your regular bank account.

We will also send you a confirmation email on the same day.

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How will my HELP/HECS debt impact my salary packaging?

Salary packaging with a HELP/HECS debt

You can benefit from salary packaging even if you have a HELP (Higher Education Loan Program) or HECS (Higher Education Contribution Scheme) debt.

Understanding your 'adjusted taxable income'

Although salary packaging can reduce your taxable income (for the purpose of paying income tax), it can increase the gross value of your salary.

This is referred to as your 'adjusted taxable income'.

So your adjusted taxable income equals your salary plus the gross value of your fringe benefits (e.g. $40,900 + $17,667 = $58,567)

How your adjusted taxable income impacts HELP/HECS repayments

The ATO assesses you on your 'adjusted taxable income' when working out how much you should pay in HELP or HECS repayments.

So with an increased gross salary, you may need to increase your regular HELP or HECS repayments.

Otherwise you may end up with a bill at tax time.

A salary packaging and HELP/HECS debt example

Without salary packaging With salary packaging
Ryan earns $55,000 each year Lisa earns $55,000 each year
He pays $9,010 in rent She salary packages $9,010 in rent payments, including $220.00 in administration fees
Ryan is taxed $10,347* Lisa is taxed $7,024*
His HELP payment is $2,200 Her HELP payment is $2,855
His take home pay is $33,443 Her take home pay is $35,891
Lisa is $2,448 better off than Ryan because she has paid an extra $655 towards her HELP debt (or an extra $25.00 each fortnight).

* Includes PAYG, Medicare.

Before you start…

Before you start salary packaging, please tell your payroll department to take additional HELP or HECS repayments from your salary.

Please also seek financial advice if you're unsure.

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How will salary packaging affect my pay?

A simple explanation

This is what happens to your pay once you've set up a Maxxia salary packaging account.

  • each pay cycle, your employer's payroll department deducts a nominated portion of your salary before tax is applied - and sends those funds to us
  • you can then use these funds to pay for your chosen benefits (e.g. Living expenses, Mortgage payments, Meal Entertainment etc.)
  • the rest of your salary gets taxed. However, because some of your salary has been taken out (to pay for your chosen expenses), you are taxed on a lower amount
  • your post-tax salary is then deposited into your bank account as usual.

By getting taxed on a lower amount and effectively paying less tax, your disposable income is increased. This leaves you with more to spend at each pay cycle.

Ready to find out more?

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Is it too good to be true?

Hundreds of thousands of Australians benefit from salary packaging every year

Salary packaging is an extremely popular way to get more out of your pay.

Many employers within the private and public sector offer salary packaging as an incentive to retain and reward their staff.

The types of benefits you can salary package, and how much, depends on what your employer offers, as well as, what the Australian Taxation Office (ATO) allows for your particular industry.

Rest assured our tax and compliance specialists keep up-to-date with ATO rulings and developments in Fringe Benefits Tax legislation to ensure we are across any changes to salary packaging which may affect you.

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Is salary packaging easy to manage?

We take care of the hassles. You enjoy the benefits.

After we set up your salary packaging arrangements, we also manage them for you. This means that we pay for your nominated expenses on your behalf - using your pre-tax dollars.

That's right. You don't even have to remember to pay your bills!

A simple process at every pay cycle

  • each pay cycle, your employer's payroll department deducts a nominated portion of your salary before tax is applied - and sends those funds to us
  • you can then use these funds to pay for your chosen benefits (e.g. living expenses, mortgage payments, Meal Entertainment etc.)
  • the rest of your salary gets taxed. However, because some of your salary has been taken out (to pay for your chosen expenses) you are taxed on a lower amount  
  • your post-tax salary is then deposited into your bank account - as usual.

View and adjust your account at any time

Although we pay for your expenses on your behalf, it's still important you know what's being paid and how much is in your account at any time.

Your Secure Maxxia Online is accessible 24/7 and allows you to: 

  • view your transactions
  • view your account balance.

Ready to find out more?

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What are cap limits?

What are the cap limits for my industry?

  • Health employees can salary package a range of benefits up to $9,010 each FBT year
  • Charity employees can salary package a range of benefits up to $15,900 each FBT year
  • Depending on your employer, health and charity employees could be eligible to package both Meal Entertainment and Venue Hire benefits up to a combined cap limit of $2,550 each FBT year. The cap limit is in addition to the salary packaging cap limit for everyday living expenses (for example, mortgages or rent).

Which benefits are capped and which are not?

Examples of capped benefits for health and charity employees include:

Examples of "above the cap" benefits for health and charity employees include:

  • novated leasing a vehicle
  • work-related expenses (for example, laptops or self-education)
  • additional superannuation payments.

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What are the benefits of salary packaging?

Why so many people say 'yes' to salary packaging

Employers offer salary packaging to reward staff for their loyalty and hard work.

But not every employer offers this benefit. So if you're one of the lucky ones, take the time to understand the many advantages salary packaging has to offer.

Pay less tax

When you salary package, you pay for some expenses - such as mortgage,rent or work-related costs - with your pre-tax salary.

So you still pay for your usual expenses, but because you're using pre-tax dollars you are reducing your taxable income at the same time. And who wouldn't want to save on tax?

Enjoy more spending money

At each pay cycle you have more money to spend on the things you want.

You may spend it on some stylish new clothes, a well-deserved weekend away - or to simply get on top of your ongoing bills. The choice is yours.

Save on the cost of running your car

By salary packaging your car with a novated lease, you could reduce the cost of keeping your car on the road - and finally afford to drive the car want.

You pay for your lease and running costs (including fuel, tyres and roadside assistance) from a combination of your pre and post-tax salary.

With a novated lease you can package:

  • a new car
  • a used car
  • your existing vehicle.

If you are considering packaging a used car or your existing vehicle, some conditions may apply.

Ready to find out more?

 

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What does it cost?

A small fee for a potentially big saving

We manage your salary packaging account in exchange for an administration fee, as agreed with your employer.

Additional charges may apply for novated lease, Meal Entertainment, and Venue Hire services.

Please refer to your Employee Information Guide for details.

Fees are paid out of your pre-tax dollars, and:

  • do not contribute towards any capping limit
  • do not attract FBT.

Want more information on fees?

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What if I don’t work full-time?

Good news for casual and part-time workers

Salary packaging is not only for full-time employees.

If you work casual or part-time hours, and your employer offers you salary packaging as part of your workplace benefits program, you can still reap the rewards of salary packaging, No matter how many hours you work or how much you earn, if you're paying income tax, you could save by salary packaging.

As of 1 July 2015, employees earning less than the tax-free threshold of $18,200 may no longer be required to pay income tax or the Medicare levy. This could affect how much you could save by salary packaging if you earn less than, or just above the threshold. Employees may wish to seek independent advice about their personal circumstances and how these changes could impact them. 

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What’s the difference between capped and "above the cap" benefits?

If you work in the public health or charity industry, you will notice that benefits may be ‘capped’ or ’above the cap’ - depending on the expense type and sector you work in.

Capped benefits are those that can only be salary packaged up to a certain amount - referred to as the 'cap limit'. 

The cap limit is the highest amount you can salary package without incurring Fringe Benefits Tax (FBT). If you salary package capped benefits over your cap limit, FBT will be applied to the expenses - and you could pay tax on the extra.

Most above the cap benefits have no limit and do not incur FBT.

However, Meal Entertainment and Venue Hire benefits incur a combined annual cap limit of up to $2,550 per FBT year (from 1 April until 31 March). They are reportable fringe benefits that will appear on your Payment Summary each year.

You could choose to package both Meal Entertainment and Venue Hire and split the cap across both. You may also decide to just package one of the two benefits and the cap limit will still be $2,550 each FBT year.

This cap limit is in addition to the existing salary packaging cap limit for everyday living expenses (for example, mortgages or rent).

 

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Could I benefit from salary packaging if I am paying off a HECS/HELP debt?

Yes. You may be able to benefit from salary packaging even if you have a HECS/HELP debt.

When you salary package, you are using money before it gets taxed. This could reduce your taxable income - and increase your disposable income.

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Could I salary package additional HECS/HELP debt repayments?

Yes you can. Additional HELP repayments can be salary packaged if you wish to pay your HECS/HELP debt off sooner.

As an incentive, Australian Tax Office will give you a 5 per cent bonus if you make a voluntary repayment of $500 or more at a time. The bonus is 5 per cent of the payment that you make, not 5 per cent of the outstanding debt.

Example:
Barry has a debt of $4,500 and makes a $1,500 voluntary repayment. With the 5 per cent bonus (i.e. $75), the value of his repayment is $1,575 and his total debt is reduced to $2,925 ($4,500 - $1,575).

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Do I need to wait until I have paid off my HECS/HELP debt before I start salary packaging?

You don't need to wait to pay off your HECS/HELP debt before you could benefit from salary packaging. No matter how large your debt is, if you expect to pay income tax you could benefit from salary packaging.

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How do I estimate how much I may need to change my HECS/HELP repayments?

Use our HECS/HELP calculator for salary packaging.

Contact us on 1300 123 123 to see how salary packaging could help you pay your HECS/HELP debt off sooner and increase your disposable income.

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How do I make sure I don't end up with a shortfall at tax time for unpaid HECS/HELP repayments?

Salary packaging could reduce your taxable income but may affect the way the Tax office calculates your HECS/HELP repayments - which could leave you with a tax bill at tax time. So your employer may not be taking out enough HECS/HELP repayments or in some cases, may not be deducting any HECS/HELP repayments at all.

To avoid a possible shortfall at tax time for unpaid HELP repayments, you need to let your payroll department know when you start salary packaging as they may need to increase or recommence the amount of your withholding tax deductions.

While each employer is different, in most cases your payroll department will be able to help you manage the process and changing your HECS/HELP repayments is quite simple to do.

Your payroll department may have its own form or they may ask you to use the ATO's form Tax declaration form or Withholding tax form. Check with your payroll department first.

This is quite simple to do and in most cases your payroll department will be able to help you manage the process.

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How much could I save with salary packaging if I have a HECS/HELP debt?

The table below shows the potential annual benefit from salary packaging with a HECS/HELP debt.

Potential Annual Benefit for a health employee

Salary

Take home pay without salary packaging **

Take home pay with salary packaging **

Benefit (annual)

$55,000

$30,718

$33,809

$3,091

$60,000

$33,793

$36,505

$2,712

$65,000

$36,543

$39,150

$2,607

$70,000

$39,243

$41,746

$2,503


*Assumptions: Estimated Annual Benefit based on an eligible health employee salary packaging the full $9,010 per annum limit and $2,550 for meal entertainment expenses. PAYG tax rates effective 1 July 2016 have been used. HELP repayments are based on 2016-2017 HELP repayment thresholds and rates. An average administration fee of $220 is included in the example. The actual administration fee that applies to you may vary depending on your employer and may alter the calculation. Estimated Annual Benefit based on the assumption that an employee does not have any accumulated Financial Supplement debt. Your benefits will vary depending on your income and personal circumstances. Compulsory HELP repayments commence once your adjusted taxable income reaches $54,869.

** i.e. $9,010 on living expenses post-tax

Potential Annual Benefit for a charity employee

Salary

Take home pay without salary packaging **

Take home pay with salary packaging **

Benefit (annual)

$55,000

$23,828

$28,185

$4,357

$60,000

$26,903

$30,885

$3,982

$65,000

$29,653

$33,860

$4,207

$70,000

$32,353

$35,960

$3,607

*Assumptions: Estimated Annual Benefit based on an eligible charity employee salary packaging the full $15,900 per annum limit and $2,550 for meal entertainment expenses. PAYG tax rates effective 1 July 2016 have been used. HELP repayments are based on 2016-2017 HELP repayment thresholds and rates. An average administration fee of $220 is included in the example. The actual administration fee that applies to you may vary depending on your employer and may alter the calculation. Estimated Annual Benefit based on the assumption that an employee does not have any accumulated Financial Supplement debt. Your benefits will vary depending on your income and personal circumstances. Compulsory HELP repayments commence once your adjusted taxable income reaches $54,869.

** i.e. $15,900 on living expenses post-tax

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What are the current HELP repayment rates?

HECS/HELP repayment threshold and rates for 2016-17:

HECS/HELP Repayment Income (HRI)

Repayment rate

Below $54,868

Nil

$54,869 - $61,119

4% of HRI

$61,120 to $67,368

4.5% of HRI

$67,369 to $70,909

5% of HRI

$70,910 to $76,222

5.5% of HRI

$76,223 to $82,550

6% of HRI

$82,551 to $86,894

6.5% of HRI

$86,895 to $95,626

7% of HRI

$95,627 to $101,899

7.5% of HRI

$101,900 and above

8% of HRI

*HRI = Taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.

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Can I change my deductions?

You can change your deduction amount at any time via Maxxia Online.

Simply login to your account, select 'Adjust my Salary Package' which is listed underneath the 'My Request' on the left hand side of the screen, then follow the prompts.

Alternatively, you can speak with one of our Customer Care consultants on 1300 123 123.

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What do I have to do?

We are adjusting our systems in line with the new rates.

If you are salary packaging up to the maximum cap, the amount you are packaging will be reduced to ensure you remain within the cap.  This will also ensure you don't attract an FBT liability.

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What if I am spending below the cap limit?

You don't need to do anything as your deductions will not be affected.

Please visit maxxia.com.au to see if there is anything else you may be able to salary package.  You could be missing out on some great potential tax savings!

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What is changing?

Due to the Federal Government’s temporary budget repair levy, the Fringe Benefits Tax (FBT) rate will temporarily increase from 49 per cent to 47 per cent from 1 April 2017.

The rate increase will not affect your salary packaging cap limits - they will remain at $9,010 for public health and $15,900 for charitable organisations, private schools, clubs, associations and religious institutions.

This also means there will be no change to your fortnightly salary packaging payment amounts.

However, there will be a minor change to the grossed-up taxable values (GUTV) shown on your payment summary from 1 April 2017. The GUTV of a benefit is the salary that you would have to earn in order to purchase the benefit from after-tax dollars.

 

  Old GUTV rate up to 31 March 2016 New GUTV rate effective 1 April 2017- 31 March 2018
Not-for-profit public and private health organisations $17,667 $17,000
Charities, private schools, clubs, associations, religious institutions $31,177 $30,000

The changes to the GUTV rates may have an effect on some government payments and benefits you may have. For example, the fringe benefits reported on your payment summary will be used to calculate liability for child support agency obligations and HECS/HELP repayments, and may impact on your entitlement to certain income-tested government benefits and concessions.

If you think this may impact your situation, we recommend that you seek professional independent financial advice.

 

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Who is impacted by the FBT changes?

The FBT rate changes will affect you if you are salary packaging:

  • items under the cap limit (i.e. health and charity employees)
  • benefits which attract FBT (i.e. remote area benefits)
  • a car using the FBT method (not the employee contribution method [ECM]).
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Who is not affected by the FBT changes?

You will not be affected by the changes if you are salary packaging:

  • items not subject to FBT
  • items outside the salary packaging cap, for example work-related expenses and additional superannuation contributions
  • a car using the ECM.

You also won’t be affected if you currently package under your maximum cap limit.

Please note that Meal Entertainment*, Venue Hire* and Holiday Accommodation* benefits can be packaged above the salary packaging cap limit, but are subject to an additional combined, single annual cap limit of $2,650 each FBT year. 

* Only available to health and charity employees, subject to employer policy.

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Can I choose the car?

Drive the car you want with a novated lease

Contrary to popular belief, you're not limited to any particular car type, model or make. In most cases, you are free to choose the car you wish to drive.

You're not restricted to just new cars with a novated lease

You can also choose to lease a used car or even your existing car.

Some conditions may apply.

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Do I drive enough kilometres to have a novated lease?

You don't have to drive a lot to benefit from a novated lease

Whether you drive fewer than 10,000 or more than 50,000 kilometres a year, a novated lease is a great way to finance a car. And you could save on tax.

Changes to legislation mean that the amount of kilometres travelled is now less important for novated lease drivers.

An example: a novated lease on low kilometres

Kelly earns $60,000 a year (excluding her employer's super contributions) and is considering leasing a new car valued at $34,000 over four years.

She estimates she will travel 15,000 kilometres a year and intends on paying for her lease and running costs with a combination of pre-tax and post-tax dollars from her salary.

By choosing to salary package her car, Kelly could increase her disposable income by $221 a month - or $2,654 a year.

Ready to find out more?

 

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Do I earn enough to benefit from a novated lease?

You don't have to earn a high-income to benefit from a novated lease

Many people believe that only high salary earners benefit from a novated lease.

That's not true. Many employees can benefit from a novated lease.

For example, an employee with a salary of $60,000 could save $2,654 a year on a novated lease.

In fact, a novated lease can put you behind the wheel of a car you might not usually be able to afford - regardless of what you earn.

When we source a new car for you from a dealer, you don't pay GST on the purchase price, which instantly saves you 10%.

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How do I pay for the car’s running costs?

Let Maxxia manage your running costs for you

Once your car's on the road, we manage the running costs for you. No extra hassles for you to worry about.

A simple annual budget

We establish a simple annual budget to manage your on-road costs - including petrol, servicing and maintenance, registration and insurance.

So you keep on top of your running costs with easy fortnightly payments - rather than being hit with lump sums.

Fuels cards offer even less hassle

You will also receive a fuel card to use at your choice of BP, Shell or Caltex service stations. Now that's convenient.

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How does novated leasing compare to a car loan?

Ways you could save with a novated lease

If you choose to lease a car rather than take out a regular car loan, there are a number of ways you could save.

Pay less tax

With a novated lease you could pay less tax because your car payments come out of your salary before it's taxed. With a regular car loan, you'll be making payments with your post-tax salary - and missing out on possible tax savings.

Save on GST

When you source a new car through Maxxia, you don't pay GST on the purchase price. So you instantly save 10% on the cost of a new car.

Reduced running costs

With a novated lease, you could save on insurance and maintenance costs. We have relationships with suppliers and insurers nationwide, and can help you get competitive prices.

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What happens at the end of the lease?

We'll talk you through your options

A novated lease agreement generally lasts one to five years. We will contact you before your novated lease expires to talk you through your end-of-lease options.

At the end of your lease, you may be able to:

  • keep the car: you pay the remaining amount owing on the car
  • refinance the car
  • upgrade to a new car: you will be required to trade in your current vehicle and pay any remaining amount owing
  • sell the car: you will need to pay off the remaining amount owing.

If you are considering keeping or refinancing your vehicle, some conditions may apply.

For more information:

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What happens if I change jobs during the lease term?

If you have a novated lease, it is ok to change jobs during your lease term

If this occurs, you may have a number of options available to you such as:

  • pay the amount owing and buy the vehicle outright
  • continue paying the lease and running costs yourself
  • transfer the lease to your new employer (subject to your new employer's approval).

Ready to find out more?

 

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What if I spend more or less than I budgeted?

If you have spent MORE than budgeted …

We will contact you to discuss increasing your regular payments to ensure you can cover the higher amount.

Please also check your online statements regularly and contact us if you notice your budget is being overspent. Then we can adjust your deductions even sooner.

If you have spent LESS than you budgeted …

At the end of your lease term we will reconcile your account within 60 days.

If there is money in your account, we will send the funds to your employer. Your employer will then deduct income tax and pass the remaining balance back to you.

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What is Fringe Benefits Tax (FBT)?

FBT explained

A tax on certain employee benefits

Fringe Benefits Tax (FBT) is a tax which is applied to benefits you receive from your employer that are not in the form of cash salary or wages.

For example, a novated lease is a benefit outside your cash salary or wages - so it is subject to FBT.

As of the 1st April 2017, the FBT rate is 47%.

Want to find out more?

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What is the approval process for a novated lease?

Maxxia offers fast and easy approval

At Maxxia, getting approval for your novated lease is fast and easy.

In fact, our customers tell us that the application form is quicker to complete than most other finance application forms.

Wherever possible, we approve applications within four hours of receiving your request.

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Why should I choose a novated lease?

Choosing a novated lease is a great way to be able to drive the car you want and get all the benefits.

A better deal on the cost of your car

We purchase a large number of vehicles from dealerships across the country. Our nation-wide buying power means we get competitive prices on new cars.

Tax savings

When you finance a new car through a novated lease, you don't pay GST on the purchase price. So you save 10% instantly.Plus, when you lease a car, the repayments are made with your salary before it's taxed - reducing the amount of tax you pay later.

Convenience

We manage the administration of your novated lease, including sourcing, financing and maintaining the car. No extra hassle for you.

Budget maintenance

Your running costs are broken down into manageable monthly payments, rather than large lump sums - including big expenses like registration and insurance. This means you won't have to pay for these costs in one hit. We can also help you save on your overall running costs, such as fuel, insurance and maintenance.

Your choice of vehicle

You can choose which car you want to drive - whether it's a new, a used car, or your existing car.

Ready to find out more?

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