What can you package?
- Credit cards
- Utility bills
One of the most common and valuable options for an employee is the opportunity to salary package either a new, used or even your current motor vehicle using pre-tax income. A Novated lease can save you thousands of dollars each year as well as certain GST savings on purchase price and running costs. For more information and to obtain a quote go to www.leaseplus.com.au.
If your family already owns a vehicle and wish to package the running costs from pre-tax income, you could enjoy the same benefits as a Novated lease. Instead of from a financier, the vehicle is leased from an associate such as a spouse or relative. A benefit of an Associate lease is that you could lower your taxable income by repaying the lease and operating costs of the vehicle with pre-tax income, whilst your associate will receive monthly lease payments. For more information go to www.leaseplus.com.au.
Tax free dining for meals and drinks! This means that when you are dining out at restaurants or paying for professionally catered functions such as wedding receptions or birthdays, they can be paid for with pre-tax income. You will receive a Meal Entertainment Card linked to your Salary Packaging account to pay for such items.
Venue Hire / Accommodation
You can save even more by packaging holiday accommodation. This can be at a hotel, motel, apartment, cabin, caravan, camp sites. The hire of a reception centre, function room or marquee are also allowed under these arrangements.
Laptops, Tablets, Mobile Phones
These items can give you further savings when packaged primarily for work purposes
Airport Lounge Memberships
No matter how much you travel, you can salary package the cost of membership to airport lounges.
Reduce the tax payable on voluntary contributions to your superannuation fund to only 15% through salary packaging. Most people can package $25,000 per year, which includes your employer's contribution which is currently 9.50%.
Remote Area Benefits
As an employee working and living in a remote area, you may be entitled to benefits that are either fully FBT exempt while other benefits may attract 50% FBT. You may qualify to:
- salary package all of rental costs 100% tax free on an employer owner or leased property
- pay for 50% of employee leased accommodation through pre-tax income and the remaining 50% with your after tax salary
- salary package other remote area benefits such as remote area mortgage interest, home purchase, fuel or holiday transport
Otherwise Deductible Items
Instead of waiting until your tax return, salary package tax-deductible items throughout the year and enjoy the savings each pay day. Items such as work related self-education expenses, income protection, home office expenses, professional magazine subscriptions, professional association fees are allowable.