4 Items You May Be Eligible to Salary Package
If you’re considering salary packaging, you may be wondering what exactly you can package.
The answer isn’t always simple, because it’s entirely dependent on the industry you work in and your employer.
You can see some examples of commonly packaged items based on industry here. The list of items is broad, ranging from things like child care, self-education and financial advice, to relocation expenses, remote housing and private rental payments.
But if you’re looking for a quick snapshot of some of the popular items that other people are taking advantage of salary packaging, look no further. To get you started, here are four great ideas it could be worth looking into.
What are some commonly salary packaged items?
1. Motor vehicles
After a new car? Or looking for a more cost effective, convenient way to pay for your car’s running costs?
A novated lease could be a good option.
A three-way agreement between employee, employer and a financier, novated leasing allows you to bundle not only your lease payments but all your car’s running costs (including petrol, insurance and servicing) into one regular payment, using a combination of your pre- and post-tax salary.
This arrangement could reduce your taxable income and boost your take-home pay, and by accessing the buying power that comes with a top novated leasing provider, you could also get a great deal on a car.
2. Portable electronic devices
A new phone, laptop, or other electronic device is often a necessary – but hefty – expense.
You may be able to soften the blow by salary packaging these items if they’re primarily for business use. Since the cost is taken out of your pre-tax salary, you could see less of an impact on your take-home pay.
‘Portable electronic devices’ is a broad category of items that includes laptops, tablet computers, mobile phones and GPS-enabled navigation devices, so there may be several items you could salary package over the year.
3. Airline lounge memberships
Airline lounge memberships are a favourite among the top items to consider for salary packaging, primarily because there are no restrictions on your purpose of travel – whether you travel on business or for pleasure, you may be able to salary package your lounge membership.
You may also be able to package several airline lounge memberships, so you can travel in style no matter who you’re flying with.
There are a few things to keep in mind:
- You pay the fees – if you salary package an airline lounge membership, you must pay for it. If your spouse, sibling, or your friend had paid for the lounge membership, you may not be able to package it.
- Document your expenses – a tax invoice would do the job. Your supporting document should clearly identify that the expense that you incurred was in relation to an airline lounge membership.
4. Additional superannuation contributions
Contributing additional superannuation to your super fund is also another popular way to salary package. Salary sacrifice super contributions are taxed at a flat rate of 15%.
Interested in finding out more?
There are many more expenses that you could be eligible to salary package, depending on which industry you work in.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.