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Who can package Remote Area Housing?

This salary packaging option is available to the following industries:

• Healthcare & Charity
• Corporate/Government/Education
• Rebatable & Others

Speak to your employer to see if this benefit is offered as part of your workplace benefits.

If you live and work in a remote area you could save in tax each year by salary packaging your house purchase costs, mortgage interest, rent, utilities (specifically gas, electricity, generator fuel and firewood) or rental costs.

Who can package remote area housing?

You can salary package interest on your mortgage, purchase costs of your house or rent repayments if you live and work in a designated remote area as defined by the ATO. The first step is to check with your employer to see if they offer this as part of your workplace benefits program.

How housing benefits work for remote workers

Check out this video from our salary packaging series – it breaks down and explains the how you can benefit from salary packaging your housing costs.

Video library | Maxxia

What exactly can I package?

You can package a range of remote area housing expenses, including these Fringe Benefit Tax (FBT) exempt benefits:

• 100% of employer-provided rental costs, OR
• 50% of private rental costs

You may also be able to access a benefit which attracts FBT at a concessional rate:

• remote area housing purchase cost
• the interest on your remote area property mortgage
• your electricity or gas expenses if you package rent, mortgage interest or purchase costs as a remote area benefit

What is Fringe Benefits Tax?

Fringe Benefits Tax (often abbreviated to FBT) is a tax paid by employers on extra benefits provided to employees in addition to their regular pay. For example, if your employer allowed you to salary package your mortgage, this benefit would be subject to FBT, which can potentially be costly.

The health and charity industries can be exempt from FBT up to a capped limit. In addition, remote employees have their own FBT exemption and concessions available. This means employees can pay for certain expenses from their salary before tax is taken out (i.e. salary package), and not need to pay FBT.

If you work for Rio Tinto you should refer to the Rio Tinto Benefits Hub for eligibility and Rio Tinto specific application forms https://www.maxxia.com.au/my-hub/riotinto

Remote worker Andrew earns $120k pa. How much could salary packaging save him in tax?

Andrew works in a remote area for a charity, earns $120,000 a year and pays $615 in weekly rent. He packages up to $31,800 toward his private rent under remote area benefits.

Thanks to salary packaging, he could save $10,040* in income tax over the FBT year. That’s equivalent to an extra $386 every fortnight back in his pocket.

By salary packaging additional benefits like Meal Entertainment, HECS-HELP, or even a new car with a novated lease, his potential tax savings could be even higher.

Remote worker Kara earns $150k pa. How much could salary packaging save her in tax?

Kara works in a remote area for a corporation, earns $150,000 a year and pays $750 in weekly rent. She packages up to $40,000 toward her rent under remote area benefits.

Thanks to salary packaging, she could save $1,654^{^} in income tax over the FBT year. That’s equivalent to an extra $138 every month back in her pocket.

How to claim your remote area housing expenses

To claim your remote area housing expenses, please send us:

• a claim form
• proof of the expense, typically an invoice or payment receipt

You’ll receive an email notification whenever your payments are processed.

If you work for Rio Tinto you should refer to the Rio Tinto Benefits Hub for eligibility and Rio Tinto specific application forms https://www.maxxia.com.au/my-hub/riotinto

What do I need to be aware of?

When you apply for Remote Area Benefits, we’ll look at your details and let you know if you’re eligible to package this benefit.

^{Things you need to know: 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 and financial advice. Conditions and fees apply along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may pay and/or receive commissions in connection with its services.}

^{*Salary Packaging:The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $120,000 salary packages to a $31,800 per annum limit. PAYG tax rates 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.}

^{^Salary Packaging: The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $150,000 salary packages to a $40,000 per annum limit. PAYG tax rates 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.}

^{Remote area benefit assumptions: The estimated potential tax benefit is based on the assumption that you would have paid for the remote area benefit item from your post-tax salary (as opposed to salary packaging those payments from your pre-tax salary). The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. GST of 1/11th is payable. The benefit of Input Tax Credits may be passed onto you by your employer. PAYG tax rates effective 1 July 2024 have been used.}

^{Salary Packaging: The estimated potential tax benefit is based on the assumption that an eligible employee working for a rebatable employer salary packages the full $17,736 per annum limit. FBT rebatable employers have a capping threshold (being a grossed up taxable value of $30,000) placed on the amount of fringe benefits they may provide to employees each FBT year to which the concessional rate applies. The maximum amount of $17,736 has been determined using a gross up rate of 1.8868 and assumes the payments are not subject to GST. Where the payments are subject to GST this amount will be reduced to $14,421 and the gross up rate of 2.0802 should be used to determine the grossed up taxable value of the benefits provided. PAYG tax rates effective 1 July 2024 have been used and average Fees and Charges are included. Tax, benefit and Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded.}

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