What's included

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.

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.

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.

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.

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.