Frequently Asked Questions
What is salary packaging?
Salary packaging is an arrangement between you and your employer where a portion of your income is deducted before tax and used to pay for your living expenses. This pre-tax deduction reduces your taxable income and results in an increased take-home pay.
Why should I salary package?
You should salary package to reduce the amount of income tax that you pay. The income tax that you don’t pay is now in your bank account to spend on the things you need.
What can I package?
You can salary package any items that are Living Expenses. The most common expenses you can package include Mortgage Payments, Rental Payments, Credit Card Repayments, Personal Loans and School Fees. Most items that you have an invoice for can be salary packaged as Living Expenses (Car Registration, Groceries etc)
How much can I package?
Living Expenses (Not for Profit): A maximum of $15,900
Living Expenses (Rebatable): A maximum of $15,900 [Fringe Benefits Tax (FBT) Applicable]
Living Expenses (Public Hospital): A maximum of $9010
Meals and Entertainment (Not for Profit and Hospitals): A maximum of $2650
Meals and Entertainment (Rebatable): A maximum of $2403 [Fringe Benefits Tax (FBT) Applicable]
What Employer Type do I work for?
Not for Profit: A not for profit organisation for FBT purposes, is a charity, registered health promotion service or community health service that is endorsed by the Australian Charities and Not for Profit Commission
Rebatable: Organisations classed as rebatable can be scientific or private schools, employer associations, not for profits encouraging the arts and literature among many more.
How do I pay for my expenses?
Typically, you would pay for your expenses out of your post-tax salary. With salary packaging, we will receive a portion of your salary before it gets taxed and we pay it back to you, without any income tax applied on the amount deducted. As a result, you will now have paid for your expenses using pre-tax dollars.
How do I apply for salary packaging?
To apply, you will need to:
- Download and read the Application Form found on our website
- Provide your personal information, including your banking details.
- Select the living expenses you wish to salary package.
- Gather documented evidence of each living expense you’ve chosen to salary package.
- Give us any further instructions we need to know.
- Agree to the salary packaging terms and conditions by signing the application.
Please send your completed application form and documented evidence to our office:
By Email: [email protected]
By Fax: 1300 88 54 70
By Post: SalaryPackagingPLUS Pty Ltd
P.O. Box 7066
MELBOURNE, VIC 3004
Am I Eligible?
Can anyone salary package?
Anyone that is an employee of an organisation registered as a Not for Profit, Public Hospital or Rebatable Organisation by the Australian Not for Profit Commission (ACNC), can salary package.
I'm a casual employee, am I eligible?
As salary packaging is a benefit provided to you by your employer, you will need to confirm with your organisation whether casual employees can salary package.
Can I still salary package if I don’t pay rent or loan repayments?
Salary packaging is not limited to individuals who only have a loan or rent expenses. There are many alternatives for people who don’t have these expenses, such as the Living Expenses Card. Please contact our office to see how salary packaging can work for you.
Is the FBT year the same as the financial year?
No, the FBT year runs from 1st April to 31st March.
Can I start packaging partway through the FBT year?
Yes, you are entitled to your annual salary packaging limit regardless of when you start during the FBT year.
Can I salary package if I have HECS/HELP debt?
Individuals that have a HECS/HELP debt can still salary package. However, salary packaging will impact your assessable income and therefore may affect your HECS/HELP repayments. A calculation will be provided to you outlining your estimated HECS/HELP repayment and tax savings. The extra tax amount relating to your HECS debt is an estimate only. This calculation is provided to assist you with minimizing any tax liability you may have at the end of the financial year. However, SalaryPackagingPLUS does not guarantee a tax liability will not be incurred by you and always recommends that you seek independent financial advice.
How much could I save if I have a HECS/HELP debt whilst salary packaging?
This is incredibly determinant upon your salary and the classification of your organisation. A tax calculation will show an estimate on any savings you can expect.
What are the HELP repayment rates?
Repayment income (RI*)
$51,957 – $57,729
$57,730 – $64,306
$64,307 – $70,881
$70,882 – $74,607
$74,608 – $80,197
$80,198 – $86,855
$86,856 – $91,425
$91,426 – $100,613
$100,614 – $107,213
$107,214 and above
Once I start salary packaging, will my employer automatically adjust my HELP repayments?
No, you will need to advise them of the extra repayments towards your HECS debt that you may need to make based on the calculation that you receive from us.
Can I package additional HECS/HELP debt repayments?
If you make additional payments towards your HECS debt to pay it off quicker, you can salary package these items via reimbursement. Any compulsory HECS/HELP repayments cannot be salary packaged.
Salary Packaging Lingo Explained
What is Fringe Benefits Tax?
Fringe Benefits Tax is a tax separate to your income tax that is payable by anybody that salary packages an item that is outside of your capped limit or is not an exempt benefit.
What are FBT Cap limits?
The FBT capped limits are the amount that someone can salary package without having to pay any Fringe Benefits Tax- this limit varies depending on the classification of your employer as stated by the ACNC.
What is an exempt benefit?
An exempt benefit is an item that falls outside of the capped allowances that doesn’t incur Fringe Benefits Tax due to the classification of the benefit by the ATO. These benefits can include Portable Electronic Devices, Remote Area Housing Benefits, Airline Memberships or Work-Related Items. All exempt benefits are provided depending on your employer’s approval.
What is the difference between capped and above the cap benefits?
Capped benefits can be a whole host of GST exclusive and inclusive items that can all be paid for out of tax-free dollars. The amount you can claim under your capped allowances is dependent on your employers ACNC classification.
Above the cap benefits are items such as Novated Leasing and Portable electronic devices. These items can be salary packaged in addition to the capped allowance and can more often than not, be claimed by organisations that aren’t classified by the ACNC as not for profit.
How do I claim?
Can I claim my old receipts?
If your receipts are less than 12 months old, haven’t been claimed by yourself or an associate before and was paid for while employed by your current employer, it can be claimed.
What should I do if I’ve lost my receipts/proof of payment?
We are unable to reimburse any payment without an itemised proof of payment. If you are unable to provide a proof of payment, we are unable to salary package it for you.
What are salary packaging cards?
Salary packaging cards are way of eliminating the administrative burden of sending in all your receipts and bills, while still gaining the tax advantage of salary packaging. Every fortnight, a portion of your tax-free salary will be deposited on the salary packaging card for you to spend on your everyday living expenses or at Meals and Entertainment venues depending on your card.
What types of venues can I claim?
All types of venues that have been hired and paid for to cater for a private event can be claimed.
What types of accommodation can I claim?
All Hotels, Motels and similar accommodation can be claimed under the Meals and Entertainment benefit allowance. However, the claim can only be submitted after the holiday/accommodation has taken place.
Can I claim accommodation if it’s part of a travel package?
Yes, provided that the invoice submitted is itemised and outlines the amount paid for accommodation/meals separate to any other charges.
How much of my tax-free cap is left to claim?
Log onto your Portal or MyKiosk to see the amount that you have salary packaged and the amount remaining.
How can I see my packaging statements and activity?
Through your Portal or MyKiosk account you will be able to see a schedule of all payments.
How do I check my card balance?
You can check your balance through the MyCardPlus application (available from the app store or Play store), Phone Banking through Beyond Bank or through browser-based internet banking.
Can I change my salary packaging arrangement anytime?
Yes, you can change your salary packaging arrangement to suit you. However, we recommend that this is limited as the changes may not be processed in time for the next pay cycle.
Do I need to provide invoices of payments made using a Living Expenses/Meal Entertainment Card?
No, the MyCardPlus cards have been designed to meet the very strict compliance guidelines as outlined by the ATO. The transactions made on your card is all the evidence required for auditing purposes.
What happens to my card balance in the new FBT year?
When a new FBT year commences, any balance left on the card is not lost and is carried over to the new year, it does however reduce the amount that you can salary package towards that benefit in the next FBT year.
For example- If you have a $2650 Meals allowance and you leave $1000 on the card when the FBT year rolls over, you are now entitled to put $1650 onto your card in the next year. You don’t lose your money, just your tax savings.
What is MyCardPlus Rewards and how do I access these rewards?
MyCardPlus Rewards is a member only platform that is offered to all SalaryPackagingPLUS customer free of charge. It provides exclusive access to hundreds of online discounts and promotions, to help you save even more on the things you love!
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