Boost Housing – Salary Sacrifice Mortgage or Rent

You may be able to salary sacrifice mortgage payments or your rental payments with Boost Housing

If you reside or work in a designated remote area (check with your Boost Salary Packaging consultant) you may be eligible to salary package the cost of the:

  • Rent for the home you are living in which is your usual place of residence
  • Interest expense of the mortgage you have taken out to purchase the home you are living in which is your usual place of residence

What is a Remote Area Housing Benefit?

It is a tax concession designed by the Australian Federal Government to assist employers in rural and remote areas to attract and retain staff.

A remote area housing benefit is an exempt benefit under section 58Zc of the Fringe Benefit Tax Assessment Act 1986.

Am I eligible?

To be eligible for a remote area housing benefit all of the following conditions must be satisfied; namely:

a) For the whole of the tenancy period, the unit of accommodation is in a remote area (that is, it must not be located in or adjacent to an eligible urban area).

To be eligible for Remote Area Housing Benefit if you live in a remote area and work for an employer located in a remote area. A “remote area” is defined as “over 40 kilometers from a town with a population of 14,000 or more, and over 100kms from a town with a population of 130,000 or more” (ATO definition). A list of locations designated “remote area” is available by contacting Boost Salary Packaging (02) 8875 7955.

Advantages for employees

  • The opportunity to reduce gross annual salary, leading to lower income tax and higher net salary
  • Ability to use for either a mortgage or rental property (but the property must be a principle house of residence). Total flexibility for either option.
  • Remote area housing program can also be applied to electricity of gas bills associated with principle house of residence.
  • If company owned housing program the advantage includes 100% FBT free benefit
  • If a private rental or reimbursement of interest from mortgage (50% FBT free benefit)

Contact us today to check your eligibility to salary sacrifice mortgage or rent payments and see how much you can save!