Salary packaging is an ATO approved way of paying for certain items before you pay income tax. The result is that you pay less income tax and increase your take-home pay.
The Australian Tax Office (ATO) allows you to salary package a variety of benefits depending on the industry you work in, your employer and the items they have selected to offer as part of their policy.
How much you can package depends on your employer type. The maximum is calculated over the Fringe Benefit Tax (FBT) year, running from the 1st of April to 31st of March.
Capped benefits refer to the FBT exemption or concession that is available to certain employer types, which allows employees to salary package certain benefits (such as living expenses, mortgage, rent, credit card payments, utility bills and groceries) up to a set limit without paying FBT. A separate capped benefit limit is also given for expenses that relate to Meal Entertainment.
The following capped limits apply based on employer type:
Additional benefits can be packaged on top of these expenses, such as purchasing a vehicle under a novated lease, work-related expenses and other types of benefits that do not attract FBT.
Salary packaging allows you to save on income tax that you would otherwise pay on a variety of everyday expenses. Salary packaging will allow you to reduce your taxable income so that you pay less tax, resulting in an increase to your take-home pay – more money in your pocket!
To apply, you will need to complete the online application form or download and complete an application form and return it to us. You can find the form by selecting ‘Application forms’ from the above menu options.
The type of evidence is determined by the benefit that you are salary packaging. You will need to complete an application form available online or by downloading a form available from the above menu options. Along with your application form, you may need to provide a valid tax invoice, proof of payment or statements to substantiate the benefit claim.
When setting up your salary package, our team will work with you to find the right solution for you. Depending on the expense, there are different ways to claim your salary packaging benefits which may include ongoing/regular payments, payments onto a card for you to spend at your leisure or payments via reimbursement when you have already paid for an expense out of pocket.
As salary packaging is a benefit provided to you by your employer, you will need to confirm with us or your organisation whether casual employees can salary package.
FBT is a tax that your employer pays for the benefits provided to you in lieu of salary or wages. Depending on your employer type, you may be eligible for an FBT exemption which means you can salary package the costs of your general living expenses and Meal Entertainment up to a capped annual limit without incurring FBT. Please refer to the categories and benefits section of our website for more information on the types of expenses you can salary package and the limits that may apply.
No, the FBT year runs from 1st of April to 31st of March.
Yes, you can commence salary packaging at any time during the FBT year. If you are eligible to salary package under capped benefits, you can accelerate your savings to take full advantage of the year’s limit.
From the 1st of July 2019, all government study and training loans are covered by one set of thresholds and rates. This includes Higher Education Loan Program (HELP), Vet Student Loan (VSL), Student Financial Supplement Scheme (SFSS), Student Start-up Loan (SSL), ABSTUDY Student Start-up Loan (ABSTUDY SSL) and Trade Support Loans (TSL).
You can still salary packaging if you have a Study and Training Support Loan; however, salary packaging may impact your assessable income and therefore your repayments.
We can provide you with a calculation outlining your estimated repayment and tax savings. The extra tax amount relating to your Study and Training Support Loan is an estimate only. This calculation is provided to assist you with minimising any tax liability you may have at the end of the financial year; however, SalaryPackagingPLUS does not guarantee a tax liability will not be incurred by you and we always recommend that you seek independent tax and/or financial advice.
No, you will need to advise your employer/payroll department of the extra repayments towards your debt that you may need to make based on the calculation that you receive from us.
You can view your FBT year to date payments and scheduled payments/remaining limit by logging into the online portal, MySalPack . Alternatively, you can contact our Customer Support team by phone or email.
You can see your salary packaging statements and activity by logging into the online portal, MySalPack.
Yes, you can change your salary packaging arrangements, but we do recommend speaking to us about your situation before any changes are made. You can contact our Customer Support team by phone or email.
You will need to provide us with evidence of the expense (such as a tax invoice or statement) with a completed claim form for the benefit you wish to claim. You can find the claims form by selecting ‘Application forms’ from the above menu options.
If your receipts are less than 5 years old, haven’t been claimed previously by yourself or an associate and was paid for while employed by your current employer, the expense (if eligible) can be claimed.
We are unable to reimburse any benefit payments without an itemised proof of payment such as tax invoice or statement for compliance reasons. If you are unable to provide a proof of payment, we are unable to salary package the expense for you.
All hotels, motels and similar accommodation can be claimed under the Meal Entertainment benefit allowance; however, these can only be claimed after the holiday/accommodation has taken place.
Salary packaging cards are a way of streamlining salary packaging under the living expenses and meal entertainment capped limits. By using a card, you eliminate the administrative burden of sending in evidence to claim expenses, while still accessing the tax advantages of salary packaging.
SalaryPackagingPLUS partner with Beyond Bank to provide a VISA card for both living expenses and meal entertainment. For more information please visit our salary packaging cards page.
Each pay period, a portion of your pre-tax salary will be deposited onto the salary packaging card for you to spend on your everyday living expenses or on meal entertainment expenses.
You can check your balance online by accessing Beyond Bank’s internet banking platform or by calling Beyond Bank on 13 25 85.
No, the salary packaging cards have been designed to meet the strict compliance guidelines issued by the ATO. The transaction made on your card is all the evidence required for auditing purposes.
Any balance left on the card is rolled over into the new FBT year. We recommend customers reduce their balances to zero by 31 March as any amount rolled over will decrease the amount you can salary packaging under the capped benefits in the new FBT year.
For example: If you have a $2,650 meal entertainment limit and you have a balance of $1,000 on the card when the FBT year rolls over, you can only package $1,650 onto your card in the new year. You don’t lose your money, just your tax savings.