Salary Packaging Work-Related Expenses
From toolbelts to tablets, there’s a number of work-related expenses you could salary package.
Who can package work-related expenses?
This salary packaging option is available to the following industries:
Speak to your employer to see if this benefit is offered as part of your workplace benefits.
Benefits of salary packaging work-related expenses
Start making your money work for you by salary packaging work-related expenses. By paying for these expenses with pre-tax dollars, you could potentially save hundreds on tax every year!
- Potential to reduce your taxable income and increase your disposable income
- No need to wait until tax time to claim reimbursement for your expenses
How does salary packaging work-related expenses work?
If you make a purchase related to your work activities, and you have a Maxxia salary packaging account, you may be able to claim reimbursement.
The funds in your salary packaging account are made up from deductions from your salary BEFORE tax is taken out. These funds are sent straight from your payroll office to your Maxxia account.
If you make a work-related expense (for example, a laptop), you can submit a claim and have the funds reimbursed from your Maxxia account.
What can I salary package as a work-related expense?
There are four categories of work-related expenses you could package.
Portable electronic devices
You could package one laptop or one other electronic device per Fringe Benefits Tax (FBT) year, if it is used primarily for work purposes. These are some of the items you could package:
- Laptop or notebook computer
- iPad
- Mobile phone
- Portable printer
- Camera
- Calculator
Tools of trade
This includes tools and equipment primarily used for work duties, such as:
- Hand tools such as spanners, hammers and screwdrivers
- Power tools such as grinders, sanders and hammer drills
- Musical instruments
- Toolboxes
- Tool belts
- Technical equipment
- Electric clippers and scissors
- Safety equipment such as hard hats or steel cap boots
Major equipment, such as a lathe or drill press, do not qualify under this benefit.
Work-related travel expenses
You may be able to salary package travel costs for work-related trips which have not been funded by your employer. These include:
- Conference or seminar fees
- Accommodation
- Hire car costs
- Car parking
- Airfares
- Public bus, train, and ferry fares
- Taxi fares
Self Education
If you’re studying for a degree, attending seminars or doing other educational activities related to your job, you may be able to salary package the associated costs.
The self-education benefit could cover costs for educational expenses that relate to your employment.
These can include:
- Courses undertaken at school, college, university or other institution
- Seminars or conferences
- Textbooks and stationery
- Accommodation, travel and meals paid for during self-education travels may also be salary packaged
How much can I salary package for work-related expenses?
When it comes to FBT rules, there is no cap for salary packaging work-related expenses. This is because they are considered ‘above the cap’ and don’t incur FBT.
However, your employer may have their own rules and policies as to what can be packaged as a work-related expense. It is best to speak to your employer to find out more.
Important things to know
Any salary packaged work-related expenses must be used least 50% for work, which you can prove through a declaration from your employer.
- The expense must be paid for outright, e.g., a phone on a plan would be ineligible.
- The expense must be purchased in your name.
- If your employer paid for the expense, it cannot also be salary packaged.
- If a work-related expense is salary packaged, it can’t also be claimed as a tax deduction.
In line with the ATO conditions for claiming self-education as a tax deduction, you can’t salary package expenses if:
- It doesn't have a sufficient connection to your employment activities at that time.
- It only relates in a general way to your employment activities at that time – such as undertaking a full-time fashion photography course and working as a casual sales assistant on the weekends.
- It enables you to get new employment or change employment – such as moving from employment as a nurse to employment as a doctor.
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