GO Salary is Australia’s first fully interactive salary packaging experience. Contact Us. It’s the easiest and most convenient way to take advantage of your capped benefits. For most people this will be lower than their marginal tax rate. 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. They’re more likely to attract the best talent and then retain it, which gives the employer a competitive advantage in the long run. On one matter there is broad consensus: sacrificing salary is usually more effective for workers on mid to high incomes, not least because they are less likely to miss the entitlement they forgo. You pay for these benefits before you get taxed and … Sound too good to be true? Salary sacrificing, also known as salary packaging, has particular advantages in the NFP sector. Your saving off the Motor Vehicle Lease by Salary Packaging is: $5,436.95 % Increase in your equivalent salary packaging: 14.23. Each pay cycle, we load your pre-tax funds onto your Living Expenses and/or Meal Entertainment Card for you to spend. Phillips. ADDIT. Advantages of Salary Packaging for Employers For employers, salary packaging gives you the advantage of providing thousands of dollars to your employees in extra take-home pay for minimal costs to you. 1800 555 582; Level 8, 550 Bourke St, Melbourne VIC 3000 [email protected] Return to Advantage Salary Packaging Website. 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. A salary sacrifice arrangement is also referred to as salary packaging or total remuneration packaging. The program enables you to maximise your disposable income by reducing the amount of income tax you are legally obliged to pay. Smart financial planning dictates that you save at … These types of salary sacrificing arrangements can also be referred to as salary packaging. Advantage Salary Packaging, Statements, Employer, Employee, Employer Group. Think different. Expenses you would’ve paid anyway, after-tax. Appointment Bookings. Salary Packaging allows you to pay for items that you have to pay for anyway, but in pre-tax salary. Salary packaging lowers your taxable income so that you pay less tax, resulting in an increase to your take-home pay! She takes advantage of the full amount of these benefits by salary packaging $15,900 (for things such as her groceries, utility bills, child care and a new laptop). 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. A salary packaging arrangement is an arrangement between you and your employee, whereby your employee agrees to forgo part of their future entitlement to salary … salary packaging purposes, providing the aggregate gross value of the Benefit Items (excluding superannuation, for which there is no packaging limit) does not exceed 50% of the Employee's total salary payable for … 1800 555 582; Level 8, 550 Bourke St, Melbourne VIC 3000 [email protected] Return to Advantage Salary Packaging Website. When you are working in a regular job, you may feel as though the money goes through your fingers as quickly as - or even quicker than - you earn it. We have. Try our salary packaging calculator to see just how much you could save. The money employees save by reducing their taxable income has … It’s vital to get a written arrangement, detailing all terms, before you earn the income. What is the average salary for Packaging Advantage employees? Save on the things you already pay for when you use your pre-tax funds and salary package with Advantage. So on pay day you pay less income tax and have more money for the things that matter. Advantage Salary Packaging, Statements, Employer, Employee, Employer Group. This amount doesn’t include other salary packaging benefits she could be entitled to, including Meal Entertainment. “There can be a lot of paperwork, and not necessarily for much benefit,” Drum adds. Some employees have the ability to salary sacrifice rent, mortgage repayments, car leases, laptops and other bills, such as electricity and rates. How does salary packaging work? Some of the most common things paid for through salary sacrifice programs include: This has additional tax benefits for the employee as it is, and in making the contributions from the pre-tax income, it is a useful way for the employee to rapidly scale their super savings, even though the benefits back to the business are non-existent. A salary package can also be a key component in retaining and attracting quality staff. The same rules also apply to performance based bonuses – that is you need to have an arrangement in place prior to earning it. A salary sacrifice arrangement is also referred to as salary packaging or total remuneration packaging. Less-often talked about is how salary sacrifice programs can also benefit the employer, and provide savings to the tune of hundreds of dollars per employee, per year. Although you can revisit a package at the end of every year with an employer, it can never be retrospective. 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. Each FBT year exists in its own ‘bubble’ – therefore you should spend to your full cap limit during the period of April 1 to March 31 to get your full … $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 … In one year I don't pay tax on about $31000 of my salary and I effectively get an early tax refund on about another $10000 worth of expenses! NFP organisations benefit more than private or “profit” companies because they can offer non-cash benefits at a lower cost, making salary packaging much more attractive to employees. Salary sacrifice. Get in touch. All information with … Employees may also salary package a motor vehicle, ie apply for a Novated Lease. •$16,050 for all other employers. Depending on what you are salary packaging, Fringe Benefits Tax, may or may not apply. Salary packaging will not change the staff member's gross salary or their terms and conditions of employment. Employees are eligible for salary packaging with benefits up to a specified amount. So yeah, you could say that I take full advantage of salary packaging! In these terms, the “Service Provider” means your provider of salary packaging administration services, being Advantage Salary Packaging Pty Ltd, as applicable to your arrangements. 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. Salary Packaging allows you to pay for items that you have to pay for anyway, but in pre-tax salary. Unfortunately for the majority – given so much depends on the status of the employer – the case for salary sacrifice may not be equally convincing or advantageous. “Just because something is on offer doesn’t mean it’s going to be a great deal for everyone,” Drum says. Overall, it is a very good idea to enable staff salary packaging options. We all know that salary packaging is popular with employees, as it allows them to reduce the amount of tax that they pay. It’s the easiest and most convenient way to take advantage of your capped benefits. What is Salary Packaging? Salary Packaging means to arrange your salary or wages in a tax effective way so that you pay less tax. When negotiating with a potential new – or renegotiating with a current – employer, she says it’s important to think beyond saving a few thousand dollars through tax breaks that might change. It is potentially. Salary sacrifice to superannuation is excluded from the Related Articles. For example if I pay for dinner with my credit card and then salary … Professional Development: By salary packaging up to $15,900 she could be up to $5,206 better off each FBT year. KPMG Australia employment, taxes and salary packaging specialist Simon Ellis believes that even for those working in non FBT-exempt sectors, “cars, superannuation and portable electronic devices are all very, very worthwhile salary packaging options”. Please select ( ) card(s) and amount per pay. Smartgroup currently comprises a number of businesses with deep expertise in employee benefit programs including Novated Leasing services by Smartleasing. This is because your pre-tax income, on which super is calculated, is reduced. Smartgroup currently comprises a number of businesses with deep expertise in employee benefit programs including Novated Leasing services by Smartleasing. Features of this site require JavaScript to function. We Make Packaging … 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. EML Living Expenses and Meal Entertainment Card Acknowledgements and Consents: Why offer salary packaging to your employees? salary packaging purposes, providing the aggregate gross value of the Benefit Items (excluding superannuation, for which there is no packaging limit) does not exceed 50% of the Employee's total salary payable for the FBT year, payable fortnightly.