Salary Packaging

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 personal loan 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. Through the Maxxia Wallet

The Maxxia Wallet is a technology-loaded smart card that makes claiming everyday living expenses, such as fuel and groceries, fast and easy.

You use it like a credit card – except the funds are drawn from your salary packaging account. Just swipe, sign or PIN, and go. To find out more go to live.maxxia.com.au

3. How to submit a claim online

If you don't have a Maxxia Wallet - or if you've already paid for the item - you can submit a claim for reimbursement.

Maxxia app is another easy way to make a claim, anywhere, anytime, from an Apple or Android mobile device, such as smart phones and tablets. With built in camera functionality, all you need to do is click, claim and go! 

With Maxxia Online and the app, you can submit a claim for reimbursement or set up a payment direct to a supplier. For payments you've already made, we will reimburse the money into your nominated bank account, generally within 2-3 business days - it's that easy!

Alternatively, you can mail to: Maxxia, Locked Bag 18, Collins Street East, Melbourne, Victoria 3000

Once received, we'll process your claim within 2-3 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.

Important Information: The information about the Maxxia Wallet is general in nature and does not take into account your personal objectives, needs and circumstances.  You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement before making any decision.

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, 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 may be 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 could be increased. This could leave you with more to spend at each pay cycle.

It’s a fair question, but no. It’s 100 per cent Australian Tax Office-approved, and hundreds of thousands of Australians benefit from salary packaging every year. 

Offering salary packaging is a popular way within both the private and public sectors for employers to incentivise 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 allows for your particular industry.

Rest assured, Maxxia’s tax and compliance specialists are up to speed with all ATO rulings and developments in Fringe Benefits Tax legislation to ensure we can accurately and efficiently service your salary packaging needs.

No. This is where Maxxia comes in: we take care of the hassles, and 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. No more juggling bills and due dates!

In exchange for managing your salary packaging account, we charge an administration fee that is dependent on the benefit and agreed upon with your employer. All fees are paid out of your pre-tax dollars and don’t contribute to your cap limit or attract FBT.

A simple process at every pay cycle

Let’s recap 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.

Treat it like a bank account

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 salary packaging account at any time – just like you would your bank account. The Maxxia app and Maxxia Online (desktop) are accessible 24/7 and allows you to:

• view your transactions
• view your account balance
• change your details
• submit reimbursement claims

Hundreds of thousands of Australians have enjoyed the many benefits of salary packaging with Maxxia, Australia’s largest provider of employee benefits, since 1988.

When it comes to unparalleled customer care, ease of claiming, access to the best third-party offers and nationwide buying power for novated leases, Maxxia continues to set the standard for salary packaging in this country.

Employers offer salary packaging to reward staff for their loyalty and hard work, but it’s not a benefit offered by all companies. So if you’re one of the lucky ones, we’ll take you through the many advantages of salary packaging.

Reduce your taxable income

We all want to pay less tax, right? With salary packaging you potentially can, by paying for some expenses with your pre-tax wage – think mortgage, rent, work-related costs and everyday items such as groceries.

When you salary package, you’re still paying for your usual expenses, but with pre-tax dollars – meaning you are reducing your taxable income and, in turn, potentially increasing your taxable income.

Enjoy more spending money

At each pay cycle you could have more money to spend on the things you want – such as new clothes or a well-deserved weekend away. The choice is yours.

Save on the cost of running your car

By salary packaging a car through novated leasing, you could reduce the cost of keeping your vehicle on the road – and, perhaps, finally afford your dream wheels. Basically you bundle the lease and the car’s running costs (including fuel, registration, insurance, servicing and maintenance) into one regular payroll deduction. And because you’re using a combination of pre- and post-tax dollars, you’re not only saving time but money, too. You don’t need a huge income to benefit, and you can package a new or used car, or even your existing vehicle.

No matter how many hours you work or your employment status – full-time, part-time or casual – if you’re paying income tax and your employer offers salary packaging, you could be eligible.

A point to note though: employees earning less than the tax-free threshold of $18,200 may not have to pay income tax, and incomes under the Medicare levy threshold of $21,655 do not attract the Medicare levy. How much you could save through salary packaging could be impacted if you earn less than, or just above the tax-free threshold. We recommend you seek independent advice before proceeding with salary packaging.

In exchange for managing your salary packaging account, we charge an administration fee that is dependent on the benefit and agreed upon with your employer. All fees are paid out of your pre-tax dollars and don’t contribute to your cap limit or attract FBT.

Salary Packaging Cap limits are set by the Australian Taxation Office, and specify the amount of before-tax money you can use for certain items each FBT year.

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.

The FBT cap you can salary package up to depends on the industry you work in.

• Health employees can salary package a range of benefits (including living expenses such as mortgage, rent, utility bills and groceries) up to $9,010 each FBT year.
• Charity employees can salary package a range of benefits up to $15,900 each FBT year.
• Rebatable employees can salary package a range of concessionally-taxed benefits up to $15,900 each FBT year. 
• Depending on your employer, health and charity employees could also be eligible to package an additional $2,650 for Meal Entertainment expenses each FBT year.

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.

Most above-the-cap benefits – such as novated leasing a vehicle, work-related devices, self-education and additional superannuation payments – have no limit and do not incur FBT.

Examples of “capped” benefits – that is, benefits that can only be packaged up to a certain amount – for health and charity employees include:

• mortgage and rent payments/living expenses (up to $9,010 for public not-for-profit health employees and $15,900 for charity employees)
• Meal Entertainment and venue hire (additional combined cap limit of $2,650 each FBT year).

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.