Why Australians love Salary Packaging with Maxxia

How will salary packaging affect my pay?

Here’s what happens 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)
• 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.

Is salary packaging difficult to manage?

No, we take care of the hassles so 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 salary packaging cap limit or attract FBT.

My Maxxia app and online

While we pay for your expenses on your behalf, it’s important you know what's being paid and how much is in your salary packaging account at any time. The My Maxxia is accessible 24/7 and allow you to:

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

What are cap limits?

Salary packaging cap limits are set by the Australian Taxation Office (ATO) and determine how much before-tax income you can salary package for certain benefits each Fringe Benefits Tax (FBT) year.

If you salary package capped benefits above your limit, FBT may apply to the excess, which could reduce your tax savings.

Your salary packaging cap depends on the industry you work in:

• Health employees can salary package eligible living expenses (such as rent, mortgage, utilities, and groceries) up to $9,010 each FBT year.
• Charity and not-for-profit employees can salary package eligible expenses up to $15,900 per FBT year.
• Rebatable organisations can salary package concessionally-taxed benefits up to $15,900 per FBT year.
• Depending on your employer, eligible health and charity employees may also salary package an additional $2,650 in Meal Entertainment and Venue Hire each FBT year.

How do I start packaging?

Getting started with salary packaging is simple. You can set up your Maxxia salary packaging account online in just a few steps at spsignup.maxxia.com.au/SPOnlineSetupMaxxia.

Prefer to speak to someone? Our team is here to help – call 1300 123 123 or contact us online for support with eligibility, benefits and getting your salary packaging started.

What does it cost salary package?

The cost of salary packaging is covered through a small administration fee for managing your account. This fee varies depending on the benefit you choose and is agreed upon between Maxxia and your employer. Importantly, all administration fees are deducted from your before-tax income, meaning they don’t count towards your salary packaging cap limit and don’t attract fringe benefits tax.

What’s the difference between capped and above-the-cap benefits?

If you work in the public health or charity sector, your salary packaging benefits may be classified as either capped or above-the-cap, depending on the type of expense and the industry you work in.

Capped salary packaging benefits are limited by ATO thresholds and can only be salary packaged up to a maximum amount each FBT year. Once you reach your cap, additional amounts may attract FBT.

Examples of capped benefits for eligible health and charity employees include:

• Living expenses, such as mortgage or rent payments

• • Up to $9,0101 per FBT year for public and not-for-profit health employees
  • Up to $15,900 per FBT year for charity employees

• Meal Entertainment and Venue Hire with an additional combined cap of $2,650 per FBT year.

• Above –the-cap salary packaging benefits are not limited by a cap and generally do not attract FBT when packaged correctly, making them a flexible part of your salary packaging arrangement.

Examples of above-the-cap benefits include:

• Novated leasing a vehicle
• Work-related expenses, such as laptops or self-education
• Additional superannuation contributions

Understanding the difference between capped and above-the-cap benefits can help you make the most out of your salary packaging options and maximise your take-home pay.

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

*Salary packaging example: The estimated potential tax benefit is based on the assumption that an eligible employee salary packages the full $15,900 per annum limit. FBT rates effective 1 July 2024 and PAYG tax rates effective 1 July 2024 have been used. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit, and Medicare levy calculations are approximate and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded.