"It can save you up to $8,000 in tax per year"
What is Salary Packaging?
Salary Packaging is a way of structuring your income to save tax. For example, you may ask you employer to pay you with $80,000 and a car (through a car lease) rather than $100,000 of taxable income. This may mean that you pay less tax and end up financially better off. For people who work at a QLD Health district, a charity or a Public Benevolent institution, the benefits can be much greater. You may be able to ask your employer to pay your rent or mortgage rather than paying you in taxable income!
Why should you salary package?
For people who work at a public hospital or PBI, it can save you up to $8,000 in tax per year. For others it likely won't be as beneficial, but often still worth exploring if you are looking at buying a new car soon, or want to increase your super balance. As a practical example, if you are a QLD Health nurse, earning $75,000 a year, putting 5% of your salary into QSuper and you don’t have HECS/HELP, by salary packaging you will end up with an extra $166.50 per fortnight in your bank account.
What can go wrong?
Salary packaging, even if set up correctly, does create some negative consequences surrounding HECS/HELP, Private Health Insurance Rebate and Child Support. This is due to salary packaging effectively being a pay rise. This pay rise means the government or your ex will be entitled to a larger payment. However, if Salary Packaging is set up incorrectly, it can cause a tax bills of up to $5,000.
How can GPA Financial Planning Help?
For $99 you will get independent advice from an experienced Financial Planner on:
What you should salary packaging
How much tax you will save
What your increase in disposable income will be (we will not charge if there is no benefit)
How much you should salary package to maximise your benefit
How to make sure you do not end up with a tax bill at the end of the year
Help with the required paperwork
Help you find the best interest rate for a novated lease
Help you set up the lease correctly so you do not end up with an FBT bill