Are you one of the lucky ones who can salary package?
Not all Aussies can salary package, but if you work in health, charity and certain corporate sectors, then today is your lucky day. Only you and your co-workers are eligible to salary package, meaning you could pay less tax, leaving you with more money in your pocket.
Every single pay.
How does it work? Salary packaging is a tax-minimising arrangement available to eligible employees It’s your chance to be more in control of your pay, making it go that little bit further by using your before-tax money to pay for regular expenses. This could reduce your taxable income and save you thousands in tax each year.
Lucy works in health
and earns $60,000 per annum
__________________________________________
Disposable income
Without Salary Packaging $41,002
Disposable income
With Salary Packaging $43,798
__________________________________________
Net benefit $2,796*
__________________________________________
She packaged
living expenses: $9,010 (cap)
*Estimate Only: Individual circumstances may vary
Mitchell works in Charity
and earns $60,000 per annum
__________________________________________
Disposable income
Without Salary Packaging $34,112
Disposable income
With Salary Packaging $38,969
__________________________________________
Net benefit $4,857*
__________________________________________
She packaged
living expenses: $15,900 (cap)
*Estimate Only: Individual circumstances may vary
Aisha works in the Government sector
and earns $60,000 per annum
__________________________________________
Disposable income
Without Salary Packaging $47,012
Disposable income
With Salary Packaging $47,885
__________________________________________
Net benefit $873*
__________________________________________
She packaged
additional super contributions: $3,000 (cap)
*Estimate Only: Individual circumstances may vary
Calculate your savings
Use our handy salary packaging calculator to see how much you could save!
Salary Packaging is easy. So be lucky.
Put your feet up and press play on one of these useful videos to learn more about what you can package and how you can benefit.
Salary packaging for Health Employees
Salary Packaging for Not-for-Profit Employees
Salary packaging for Corporate Employees
Salary Packaging with a HECS-HELP Debt
Salary packaging can still be beneficial if you have a HECS -HELP debt, but it may affect your adjusted taxable income and repayment rates.
There are some important points to be aware of:
It’s important to remember that salary packaging may affect your current taxable threshold, which could change the way the ATO calculates your repayments.
The Australian Taxation Office (ATO) assesses you on your ‘adjusted taxable income’ when working out how much you should pay in HELP or HECS repayments. So with an increased gross salary, you may need to increase your regular HELP or HECS repayments, otherwise you may end up with a bill at tax time.
If you choose to go ahead and salary package, you’ll need to ask your payroll department to deduct additional HECS-HELP repayments. How much? Maxxia has an online HECS-HELP calculator which will estimate the additional amounts you might need to request through your payroll, as well as your potential tax savings as a result of salary packaging.
You can crunch the numbers for yourself.
Getting started
Wondering if you’re eligible? There’s a big chance you are because you’re one of the lucky ones to work in eligible industries. Remember, it doesn’t matter if you’re casual, part-time or otherwise. Simply by working in health, charity or for one of our corporate partners you could be eligible to salary package. Make the most of your luck. Take control of your pay. Sign-up is straightforward, and we guide you through the process.
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, and you should consider if they are acceptable before you accept any arrangements with Maxxia, 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:
Lucy: The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $60,000 salary packages to a $9,010 per annum limit. FBT rates effective 1 April 2024 and PAYG tax effective 1 July 2024 have been used and average Fees and Charges are included. 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. This general information doesn’t take your personal circumstances into account.
Mitchell: The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $60,000 salary packages to a $15,900 per annum limit. FBT rates effective 1 April 2024 and PAYG tax effective 1 July 2024 have been used and average Fees and Charges are included. 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. This general information doesn’t take your personal circumstances into account.
Aisha: The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $60,000 salary packages to a $3,000 per annum. FBT rates effective 1 April 2024 and PAYG tax effective 1 July 2024 have been used and average Fees and Charges are included. 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. Additional 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. This general information doesn’t take your personal circumstances into account.
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.