Find out more about salary packaging personal loan repayments
Who is this benefit available to?
This salary packaging option is available for the following industries:
Speak to your employer to see if this benefit is offered as part of your workplace benefits.
What is salary packaging for personal loans?
If you are making personal loan repayments, salary packaging could be a great way for you to pay off the loan and potentially save on tax.
Regardless of the purpose of the loan, making repayments with pre-tax money could help you pay the loan off and potentially reduce the amount of tax you pay each year.
Why should I pay for my personal loans with salary packaging?
Here are some of the benefits of salary packaging loan repayments:
- Potential to increase your disposable income
- Enjoy the convenience of setting regular reimbursements from your Maxxia account to your bank account to cover repayments
How does salary packaging personal loan repayments work?
Salary packaging personal loan repayments can seem overwhelming, so we’ll try to break it down. Each pay cycle, you will nominate an amount you want to put towards the repayments. Your employer will then send this money to Maxxia before tax is taken out.
How much can I package towards personal loans?
Personal loans would come under the Living Expenses benefit as part of ATO-approved salary packaging. Employees in the Healthcare sector can package $9,010 towards payments considered Living Expenses. Those in the charity or non-profit sector can package $15,900 of their salary, pre-tax
Important things to know
- You can only salary package repayments for a loan that’s made in your name, or jointly with someone else.
- Loans must only be through a recognised financial institution.
Things you need to know: The above information is not intended to constitute taxation or financial product advice. Your benefits and savings will vary depending on your personal objectives, financial situation and needs. We recommend you obtain independent financial advice before making any financial decisions.
Eligibility criteria and terms and conditions apply. All salary packaging proposals are subject to the requirements of your employer. Administration fees will apply. The actual administration fee that applies to you may vary depending on your employer. Maxxia may pay and receive commission or rebates in connection with some services and products it provides or arranges to be provided by third parties.