Employee Contributions

What are employee contributions or recipient contributions?

Employee contributions are the after tax contributions made by the employee towards the operating cost of the vehicle. Boost Salary can coordinate with your Payroll department to ensure the appropriate deductions (both pre & post tax) are made from your salary so as to maximise your tax benefit.

How do employee contributions benefit me?

Example 1:

I wish to package a Hyundai i30 Elite over 3 years. I will drive 25,000km p/a. My salary is $90,000. Cost of the vehicle is $25,000.

Non-Packaged Benefits p/a Boost Salary Packaging Benefits p/a
Total Gross Salary $90,000 $90,000
Vehicle Lease Package $0 $9,576
Gross Salary $90,000 $80,424
Tax on Gross Salary $22,320 $18,910
After Tax Contribution $14,576 $5,000
Annual Net Salary $53,104 $56,514
Monthly Net Salary $4,425 $4,709
Using the facts above: By making a $5,000 annual employee contribution, your net income after tax is $3,410 higher than the non-packaged option.

Example 2:

I wish to package a Subaru Liberty 2.5i Sport over 3 years. I will drive 25,000 km pa. My Salary is $90,000. Cost of vehicle is $40,000

Non-Packaged Benefits p/a Boost Salary Packaging Benefits p/a
Total Gross Salary $90,000 $90,000
Vehicle Lease Package $0 $10,668
Gross Salary $90,000 $79,332
Tax on Gross Salary $22,320 $18,519
After Tax Contribution $18,668 $8,000
Annual Net Salary $49,012 $52,813
Monthly Net Salary $4,084 $4,401
Using the facts above: By making a $8,000 annual employee contribution, your net income after tax is $3,801 higher than the non-packaged option.

Example 3:

I wish to package a Jeep Grand Cherokee Laredo over 3 years. I will drive 25,000 km pa. My Salary is $125,000. Cost of vehicle is $50,000

Non-Packaged Benefits p/a Boost Salary Packaging Benefits p/a
Total Gross Salary $125,000 $125,000
Vehicle Lease Package $0 $15,304.14
Gross Salary $125,000 $109,695.86
Tax on Gross Salary $36,825.00 $30,779.52
After Tax Contribution $25,304.14 $10,000
Annual Net Salary $62,870.86 $68,916.34
Monthly Net Salary $5,239.24 $5,743.03
Using the facts above: By making a $10,000 annual employee contribution, your net income after tax is $6,045.48 higher than the non-packaged option.

For further information on employee contribution please contact Boost Salary Packaging.