You don’t need a pay rise to increase your income.
Salary Packaging is an entitlement granted by the Federal Government to all workers that allows you to take part of your income as a tax-free benefit.
Salary packaging works by having a portion of your pre-tax salary deducted to pay for certain expenses. Income tax will then only apply to the amount of your salary that remains after these deductions have been applied.
Salary packaging is limited for commercial employees to superannuation contributions, motor vehicle expenses and expenses that the employee would otherwise have received a tax deduction for. This applies for employees from most businesses, organisations and government departments.
However for people working for not-for-profit public or private hospitals, certain non-government not-for-profit organisations or public benevolent institutions the expenses able to be salary packaged can extend to groceries, personal loan or mortgage payments, household bills, school fees and more.
Please contact Alderman & Associates for further information.
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