|
What is salary packaging?
Salary packaging can reduce the amount of tax you pay by paying for expenses using
pre-tax income. By reducing the amount of tax you pay, salary packaging will leave
you with more money to meet your personal and financial needs.
What can I package?
Employees of rebatable and PBI organisations such as public hospitals and charities
can package the ATO capped amount on certain items. Your Paradigm consultant can
explain the capped amount to you. Essentially all of your everyday items can be
salary packaged under the living expenses benefit, for example, grocery bills, utility
bills, insurance payments even haircuts; or, you could choose to package your mortgage
repayments or rent in the cap. You can also package extra items like cars, meal
entertainment, and superannuation that don’t count towards your cap.
Employees of non concessional organisations such as most government departments
benefit best from packaging items like cars, meal entertainment, and superannuation.
Paradigm allows you to include a new or used car in your salary package through
a novated lease arrangement. Salary packaging a novated lease enables you to save
money (via income tax and Goods and Services Tax (GST) savings) because car lease
and running costs are paid using your pre-tax salary (or a combination of pre-tax
and after tax salary).
To find out more click here
Who is eligible?
Salary packaging can benefit most employees. If you’re paying income tax you can
benefit.
To see examples of the tax savings please click here
|