Most employers will, however, at least offer salary sacrifice into superannuation, which is FBT exempt. Overall, it is a very good idea to enable staff salary packaging options. To discuss your salary packaging Savings and Apply, please Contact Remunerator on 1300 654 834. A salary package can also be a key component in retaining and attracting quality staff. There is no automatic right to salary package and some employers restrict who can package what, while others refuse to put anything on the table. This is one of the best ways for employees to get a car, and reduce down on running costs – cars purchased this way need to have work applications, and the employer will generally need to reimburse the owner for the costs of travel for the purposes of work. © MEDIQ Financial Services document.write(new Date().getFullYear()) - a Corporate Authorised Representative of Synchron AFS Licence No. You can salary package up to $15,900 of your pre-tax income each year. Employees are often happy to pay for laptops, professional memberships, and airport lounge memberships via salary sacrifice, this can reduce their taxable income and provide them with an increased cash flow year-round. Strategic salary packaging example: If the job market is paying around $80,000 for an NFP professional, your organisation could advertise the annual salary package of $80,000, with the actual cost to the organisation of $63,000. Employers that offer salary sacrifice programs are popular places to work. This is because your pre-tax income, on which super is calculated, is reduced. … Specifically with an Advantage Salary Packaging Visa Card (edit: this may be the "Westpac Everyday Purchase Card") My partner is starting her first professional job. Phillips. By enabling employees to buy their own equipment via salary packaging and then use it for work purposes, the business is able to mitigate a lot of that expense and risk. Our Customer Service Centre is open Monday to Friday 8:30am to 7pm (AEST) (8pm during daylight saving AEDT). Advantage Salary Packaging, Statements, Employer, Employee, Employer Group. See how affordable it is . It is potentially. Each staff member is able to select their own salary packaging benefits only from those offered by their employer. Save on the things you already pay for when you use your pre-tax funds and salary package with Advantage. The Company offers salary packaging, reporting, reconciliation, and tax management services. Salary sacrifice. The money employees save by reducing their taxable income has … FBT - Cars, car parking and salary packaging. The salary packaging provider calculates that: Sam will sacrifice $17,353 if no employee contributions are made, or; $4,145 if employee contributions of $7,000 are made. Our range of salary packaging cards give you the flexibility of spending your pre-tax salary where and when you want. It’s the easiest and most convenient way to take advantage of your capped benefits. If you are interested in Salary Packaging and do not have a login, please call 03 9496 4141. Why offer salary packaging to your employees? Salary packaging, sometimes referred to as Salary Sacrificing, is an Australian Tax Office (ATO) approved way of receiving benefits, such as motor vehicles, self-education expenses, airport lounge membership and many more, by way of a pre-tax deduction. Salary Packaging has significant benefits to employees by allowing them to maximize the purchasing power of their income, but it’s not all about the employee’s; employers also benefit from having a more satisfied and better-remunerated workforce, a lower churn rate of staff and become an employer of choice for prospective employees. $125K VP of Operations Average Salary at Packaging Advantage (1 salaries) +$4K (3%) more than national average VP of Operations salary ($121K) +$70K (77%) more than average Packaging Advantage salary … Try our Novated Leasing Calculator. Pros of salary packaging Attract employees. Smartgroup currently comprises a number of businesses with deep expertise in employee benefit programs including Novated Leasing services by Smartleasing. OK, now we need a little more detailed information about you. Salary packaging is a smarter way for employees to use their salary to pay for a vehicle, a mortgage and many other everyday expenses before tax is calculated on their wages. Salary packaging is an Australian Tax Office (ATO) approved incentive that allows employees to increase their disposable income by paying for certain expenses from their pre-tax income, and at no cost to their employer. This video illustrates the features and functions of the Advantage Salary Packaging Android and Apple Smartphone Apps. The salary packaging policy set down by your employer offers a number of remuneration options that can be taken as a cash salary and non-cash benefit items. Each month we select the must-reads from the current issue of INTHEBLACK. It’s vital to get a written arrangement, detailing all terms, before you earn the income. It’s no secret that wage growth in Australia is at a record low, making it more important than ever to extract maximum value from whatever an employer might be prepared to offer. CPA Australia head of policy Paul Drum FCPA agrees that this can be effective – “if an employee is keen to contribute more now for use in their ultimate retirement” – but downplays the advantages of other options. 1800 555 582; Level 8, 550 Bourke St, Melbourne VIC 3000 [email protected] Return to Advantage Salary Packaging Website. The option of having a small fringe benefit provided instead of the equivalent amount of cash salary is an attractive proposition. So on pay day you pay less income tax and have more money for the things that matter. Please note that Susie’s ability to salary package is dependent on the industry she works in and the package her employer provides. Then advantageous salary sacrifice opportunities are much more beneficial – household utility bills, mortgage payments, cruises, weddings, restaurant meals. The Australian Securities and Investments Commission (ASIC) divides salary sacrifice benefits into three categories: Salary-sacrificed contributions are taxed in the super fund at 15 per cent, the same as employer contributions. It allows the employee to pay for expenses, such as a car, laptop, or additional superannuation expenses from their pre-tax earnings, which in turn reduces the total income that can then be taxed. Calculate now. Under such an agreement employers provide a cash portion of the salary up-front and the remainder in the form of non-cash benefits. Employees are eligible for salary packaging with benefits up to a specified amount. While there’s still an argument that could be made that allowing staff to make these purchases is good for morale, in practice, administering these salary sacrifices might simply not be worth it for the business. Calculate how much you could save with salary packaging. By salary packaging up to $15,900 she could be up to $5,206 better off each FBT year. So yeah, you could say that I take full advantage of salary packaging! Amount per pay Employer Are you … They’re more likely to attract the best talent and then retain it, which gives the employer a competitive advantage in the long run. GO Salary is Australia’s first fully interactive salary packaging experience. It is essential to get professional financial advice, because everyone’s personal circumstances differ. Drum says employers that are not either exempt or rebatable for FBT purposes will calculate the tax they will pay on the benefit and will factor it into the cost of your package. What is Salary Packaging? Everyday Purchases card Additional cardholder A. Try our salary packaging calculator to see just how much you could save. Answer these questions to help find the package that suits you. This website has advised me that I could save $5,436.95 in tax by purchasing a new car through them. You pay for these benefits before you get taxed and then get taxed on your remaining income. The ability to shift purchasing costs to the employee, while ensuring that both sides benefit from a costing point of view, makes this one of the best benefits that you could offer your staff. Read more now. Each pay cycle, we load your pre-tax funds onto your Living Expenses and/or Meal Entertainment Card for you to … Expenses you would’ve paid anyway, after-tax. Related Articles. The employee’s wages would decrease in line with the type of leave being taken, but they would not lose access to the equipment, which can become expensive for the business. 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