What's included
Super-charge your salary by packaging one or more of these popular benefits.
The types of expenses that you can salary package depend on your employer and the type of industry you work in.
Portable Electronic Devices (laptops, mobiles, tablets)
Unlock a new device to stay connected with work! You can salary package one of each type of portable electronic device (e.g. iPad, mobile phone, laptop, etc.) during each fringe benefits tax year. To be applicable for this benefit your employer must confirm the item is primarily used for work and this should be supported by an appropriate portable electronic device usage policy
The ATO limits portable devices to fall under the following limitations:
- Easily portable and designed for use away from the office
- Small and light
- Can operate without an external power supply
- Designed as a complete unit (accessories & warranties not included)
Professional Memberships & Subscriptions
You may be able to salary package the cost of certain 100% work-related expenses such as professional association memberships or subscriptions.
Items that can be salary packaged include:
- Trade newspapers & magazine subscriptions
- Professional memberships & subscriptions
If you work for a not-for-profit organisation, you can also salary package club or association fees that are non-work related (up to designated caps).
You will be required to complete a declaration confirming that the professional membership or subscription is work related.
Airline Lounge Memberships
Why not make flying a pleasure by salary packaging airline lounge memberships! Enjoy your next trip to the airport by relaxing and indulging in the state-of-the-art facilities while saving on membership costs. You can start saving on multiple memberships as there is no limit on the number of lounges you can join but you can only salary package airline lounge memberships for yourself.
Additional Superannuation
Boost your retirement savings for later & enjoy the tax savings now with salary packaging! If your superannuation fund complies, these contributions will be classified as ‘employer contributions’ in addition to the regular superannuation contributions made by your employer. Salary sacrificed contributions are only taxed at 15% (or 30% for individuals with an income for surcharge purposes of over $250,000) compared to making after-tax contributions at your marginal tax rate. These additional contributions can increase your retirement pool of funds for that well-deserved luxury.
The salary sacrifice of additional superannuation contributions will be reported on your annual PAYG payment summary as a reportable employer superannuation contributions (RESC). RESC amounts are included in most income tests.
FleetPartners strongly recommends seeking independent financial and taxation advice to understand the impact of having a RESC amount reported on your annual PAYG payment summary.
As of 1 July 2017, the annual cap for concessional contributions is $25,000 per annum for all individuals, regardless of age. This includes the compulsory employer contribution (currently set at 9.5%). Contributions above the cap will be taxed at your marginal tax rate plus an excess concessional contributions charge.
Please refer to www.ato.gov.au for more information.
Self-Education Expenses
Broaden your horizons with learning a new skill or increase your knowledge through a self-education study. If you are studying for a course or qualification that relates to your current employment, you can salary package all expenses by using pre-tax dollars. Salary packaging means you don’t have to wait until tax time to claim on your job-related study.
Items related to the course can also be included such as stationery, textbooks & union fees.
There are a few things to note before asking your employer. Self-education expenses paid by your employer, HECS/HELP repayments or loan repayments cannot be salary packaged.
You will be required to complete an employee declaration verifying that the self-education expenses are work related.
Home Office Expenses
Work from home on a regular basis? You may be eligible to salary package the cost of home office purchases, such as the following:
- A computer and/or software
- A printer / fax machine
- Certain types of furniture which also pass the 100% write-off test (subject to certain limits)
- Repairs & maintenance on your home office equipment
- Stationery
Note: you can only salary package items which are 100% work related.
You will be required to complete an employee declaration verifying that any home office purchase is 100% business-related.
Child Care Fees
You can salary package the cost of childcare fees from a registered in-house provider i.e. operated in-house by your employer. You will be required to confirm with your employer whether your in-house childcare facility meets ATO requirements.
Payments can be set up as a once off payment, regular payments or a reimbursement back to you.
Note: Salary packaging child care fees may affect your entitlement to government benefits as salary packaging can affect the gross value of your salary. Where you salary package the cost of child care benefits, you also may not be eligible for the childcare rebate. We recommend you seek independent financial advice to determine if salary packaging is right for you.
Income Protection Insurance
Income protection insurance safeguards yourself and your family from loss of income. By salary packaging this benefit you can receive tax savings in addition to peace of mind knowing your finances are covered if you become sick or injured and are unable to work.
There are some exceptions: you can’t claim a deduction for a policy that compensates you for physical injury, or where the policy is taken out through your superannuation policy and deducted from your super contributions.
You will be required to complete an employee declaration confirming that these expenses would be otherwise deductible on your tax return.
Financial Advice
If you obtain professional financial advice you may be eligible to salary package the fees. Fees from seeking advice from a qualified financial counsel, planner or advisor can be salary packaged, such as ongoing costs of managing your financial affairs or advice relating to existing investment plans.
Note: fees related to salary packaging consultations are not covered by this benefit.
You will be required to complete an employee declaration confirming that these expenses would be otherwise deductible on your tax return.
Relocation Expenses
Have you secured your dream job but need to move? If your employer requires you to live in a particular area in order to carry out your job, you could salary package a range of relocation expenses, regardless of whether you rent or buy.
These expenses include:
- Costs associated with selling your home (solely as a result of changing your usual place of residence in order to move for work) within two years of relocating for work
- Costs associated with the purchase of a new home (such as stamp duty, legal fees, inspections) within four years of relocating for work and only if you sold your home in your previous location
- Cost of storage and removal of household items
- Cost of connecting utilities (electricity, gas & phone line)
- Temporary accommodation in the former and/or new place of employment
- Cost of transport to your new location (such as flights)
Note: if the expense has already been covered by your employer, then you won’t be able to salary package the item.
You will be required to confirm with your employer whether relocation expenses meet ATO requirements. For some relocation expenses, you will be required to complete a declaration substantiating your payments.
Remote Area
If you live and work in a Remote Area, you could be eligible to salary package a number of expenses such as:
- Employer-provided rental costs (no FBT applicable)
- Half your private rental costs (no FBT applicable)
- Interest on your mortgage repayments (50% FBT)
- Residential fuel such as electricity/gas (50% FBT)
Remote areas are defined by the ATO and published on the ATO website. It is best to check the ATO website to confirm if your area is classified as remote.
Mortgage
Focus on owning your home earlier by salary packaging your mortgage repayments. Paying in pre-tax dollars means you can potentially pay more towards your home loan and save on interest.
You must be an owner-occupier to qualify for this benefit and the mortgage is not linked to an interest offset facility.
Rent
Living in a rental could not be easier when you can salary package your rental payments. By using your pre-tax dollars, you could save on tax and leave you with more money left over to assist with other expenses.
Payments can be one-off or regular and can be paid directly to your nominated realty or landlord.
Personal Loan
Need a personal loan for a car, debt consolidation or just a holiday? You can salary package your personal loan repayments to pay it off quicker. Save on interest as well as saving on tax when using your pre-tax dollars for repayments.
You are not able to draw down on any salary sacrificed loan repayments.
School Fees
Invest in your children’s education and save on tax at the same time by salary packaging their tuition fees using pre-tax dollars. This will leave you with more money for any other things your children need for a better education.
Salary packaging applies to tuition fees for both private primary & secondary schools registered in a state or territory of Australia.
Meal Entertainment/ Venue Hire/ Holiday Accommodation
Enjoy dining out with friends or family? Need to hire a venue for an event? Or going on holiday? You can save income tax on your meal entertainment, venue hire and holiday accommodation if you work for a charity or health organisation.
Meal entertainment includes:
- Dining in at a restaurant, café, pub or similar
- The hiring of caterers to supply food and drink
Examples that are not likely to be meal entertainment include:
- Take away food
- Coffee and snacks
- Purchase of general household food and drink
- Entertainment such as tickets to the movies, theatre and so on
Venue hire/holiday accommodation includes:
- Hire of a reception centre, function room, marquee or corporate box
- Holiday accommodation such as hotel rooms, B&B’s and caravan parks
The maximum you can salary package is $2,650 per FBT year, however, this is in addition to your salary packaging/living expenses capped limit so you can save even more (as per the FBT rates for the year ending 31 March 2019).
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