What types of expenses could you salary package?

If you work for a charity, non-profit, PBI, aged care or disability services organisation, you could be eligible to package up to $15,900 towards Living Expenses, and on top of that, up to $2,650 towards Meal Entertainment. You could also package a novated lease and uncapped benefits that don’t attract Fringe Benefits Tax.

Salary packaging with a HECS-HELP debt 

You can still potentially save tax with salary packaging, even if you have a HECS-HELP debt.  

If you choose to go ahead and salary package, you’ll need to ask your payroll department to change your deductions to avoid a possible bill at tax time. 

You can calculate how much you may need to pay in additional HECS-HELP repayments using the Maxxia salary packaging calculator.

You can crunch the numbers for yourself or request a call back to have one of our consultants walk you through it. 

Got questions? HECS-HELP FAQs

Salary Packaging: The estimated potential tax benefit is based on the assumption that the disposable income is based on an eligible employee with an annual salary of $60,000 salary packaging to a $15,900 per annum limit and claiming $2,650 in venue hire and meal and entertainment expenses. PAYG tax effective 1 July 2024 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Your disposable income will vary based on your income and personal circumstances.

¹The 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. The Meal Entertainment benefit does not cover take-away meals, groceries or eating out on your own.

²Additional 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.  Only one laptop and one iPad or tablet can be salary packaged per FBT year and must be used primarily for business purposes.

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 load products. The availability of benefits is subject to your employer’s approval. Maxxia may receive commissions in connection with its services.

Maxxia Pty Ltd | ABN 39 082 449 036