Australian Tax Office guidelines allow for a range of items employee’s can Salary Package depending on the type of organization you work for, which will have a particular status with the Tax Office.
Depending on your Employers status, there are a range of payments that can be made on your behalf, each pay day, from your salary before tax.
Your tax is calculated after the deductions, and therefore you pay less tax.
The salary packaging structure is in accordance with Federal Government and Australian Tax Office requirements.
The categories of items you can salary package will vary depending on who you work for. See the list of or the items in the table below.
Contact our friendly Customer Service staff if you are unsure of your employer’s status.
PBI, Hospital and Rebatable employees can also salary package directly to the SPG MasterCard which provides maximum flexibility to access your monies. You can spend your BEFORE TAX monies at any retail or service provider accepting Visa payment.Salary Package your Car
All employees can salary package a car, with the employers consent. Salary Packing a vehicle via a Novated Lease is an Australian Tax Office approved structure which has significant benefits to many employees across a wide spectrum of organizations.
Car Packaging works in much the same way as other Salary Packaging – by paying for vehicle payments and running costs from the employee’s pre-tax salary. Important to note the car is registered and insured in the employee’s name, no business use is required and the employee does not have to be the main driver.
Employees reduce their taxable income and therefore the amount of tax they pay each pay day, which increases their net pay, providing in effect a pay rise.
In addition to PAYG tax savings, employees benefit from significant GST savings on the purchase price of the vehicle and running costs of the car such as fuel, tyres, servicing etc.
Employees are also able to gain access to SPGs fleet buying power. The fleet discounts for virtually all new cars are significant. A no obligation fleet pricing service is available for employees to compare pricing. Many employees appreciate the opportunity to drive their car of choice, best suited to their personal situation and needs.
In the event of the employee moving to another organization the cars stays with the employee. The new employer may take over the Novation or the driver simply continues with the finance arrangement until the end of the lease.Exempt Items
Employees of all organizations are able to salary package items that are FBT exempt, including: