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Frequently asked questions |
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» Laptops, Mobiles and PDA's
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Over what periods can I salary package a notebook computer or handheld
PC / mobile phone? – A laptop can be taken through the 
Do I have a choice of super fund provider? – 
What is FBT? – FBT stands for Fringe Benefits Tax. If an employer
provides you with any sort of remuneration or benefit other than cash
salary, they may be providing you with a Fringe Benefit. As such, your
employer may incur a Fringe Benefit’s Tax liability. In some cases (such
as private vehicle usage) your employer may elect to charge this to your
package as a cost of employment.| 0 - 15,000 | 26% |
| 15,000 - 25,000 | 20% |
| 25,000 - 40,000 | 11% |
| 40,000 » | 7% |
$30,000 x 11% = $3,300 FRINGE BENEFIT VALUE (1)
This value is grossed-up to account for income tax and GST using a predetermined factor of
2.1292 GROSS UP FACTOR (2)
Therefore,
$3,300 x 2.1292 = $7,026.36 GROSSED UP FRINGE BENEFIT (3)
Multiply by the FBT Tax rate
48.5% FBT TAX RATE (4)
Therefore,
$7,026.36 x 48.5% = $3,407.78 FRINGE BENEFITS TAX (5)
How can I reduce or eliminate the FBT? – Every dollar paid in after-tax contributions toward the operating cost of the vehicle effectively reduces the Fringe Benefit Value by one dollar. Using that rationale in the above example, an after tax employee contribution of $3,300 would effectively eliminate the entire fringe benefits tax liability for the above vehicle.
This only remains true if the value of the vehicle or the total km travelled do not impact on the Fringe Benefit Value.
What are employee contributions or recipient contributions? – Employee contributions are the after tax contributions made by the employee toward 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?
| Employee Contributions | No Employee Contribution | Without Packaging | |
| Total Cash Salary | $90,000 | $90,000 | $90,000 |
| Novated Lease | $13,292 | $16,592 | $0 |
| FBT | $0 | $3,748 | $0 |
| Net Cash Salary | $76,708 | $69,660 | $90,000 |
| Income Tax | $20,722 | $17,657 | $26,505 |
| Employee Contribution | $3,630 | $0 | $18,251 |
| Disposable Income | $52,356 | $52,003 | $45,244 |
| Saving | $7,112 | $6,759 | $0 |
What reports will I receive to help me manage my boostDrive novated lease? – You will be provided with quarterly detailed reporting to provide you with accurate and up to date information on your vehicle packaging costs. This report will show you how your vehicle is tracking with actual operating costs against budget and your FBT status.
Can I transfer my lease to a new employer? – Yes the boostDrive novated lease is very flexible and you can easily re-novate the lease to your new employer. Please contact customerservice@boostsalary.com.au to make the necessary arrangements for your new employer. Note: Some fees may be applicable.
What should I do if I need to terminate the lease? - If you do need to early terminate your lease then boostDrive will assist you in evaluating the most beneficial option for you and calculate any financial payout requirements.
Who is entitled to a novated lease? – All full-time employees of Australian companies and registered organisations are entitled to lease a vehicle under a novated lease arrangement. This is subject to the following; a) approval from your employer and, b) acceptable credit assessment.
Can I package my fuel expenditure? – Yes this is one of the major benefits of a boostDrive novated lease as many employees enjoy the benefit of paying for fuel with pre-tax salary, no GST and the boostDrive fuel discount as well !
What is included in the monthly payment? – You will be provided with a salary package quotation that details all the inclusions and your monthly commitment; under our boostDrive program you can include all your vehicle finance, registration, insurance, servicing, tyres and operating costs.
How much does it cost each month? – This will be dependant on vehicle type, finance amount, lease length, kilometres travelled and services included. Your boostDrive Packaging Consultant will be able to provide you with the necessary information for you to make a decision and tailor a boostDrive lease to suit your needs now and into the future.
What period can I take a novated lease over? – With boostDrive you can take your novated lease over periods from 1, 2, 3, 4, or 5 years. Subject to your annual kilometres it may be better to have a shorter term than a longer one. Your boostDrive Packaging Consultant can provide you with all the options to assist you in making your choice.
What are the finance terms and conditions? – These are provided to you with the finance lease agreement that you sign when commencing a boostDrive novated lease, contact us at customerservice@boostsalary.com.au for more information.
Can I choose where to purchase my vehicle? – Yes you can but we recommend that you do your research first and do not sign up to any deal until you have spoken to boostDrive and obtained the best possible discounts through our vast supplier network.
Why should I choose a boostDrive novated lease from boost salary for my novated lease? The decision to salary package a vehicle is one that you need to ensure that you understand fully, boost salary are a novated lease specialist organisation dedicated to ensuring our customers receive the optimum result in a salary package. Our experience in the industry is extensive, our supplier network comprehensive and our service levels are outstanding, our customers are our best reference and they keep coming back again to us because of the service. Try it yourself call boost salary it’s refreshing to experience good service!
Contact us @ customerservice@boostsalry.com.au or telephone us on 02 8875 7955
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boostBistro
Who is entitled to a boostBistro facility? – All employees of
any organisation who have an on-site cafeteria for the exclusive use of
employees and also have an agreement in place with boost salary to provide
salary packaging services.How much do I spend each month? – It is entirely up to you to nominate the amount that you wish to salary package under boostBistro per month, remember this is only a budgeted amount and can be altered to suit any change in circumstances.
Why is boostBistro a benefit to me? – All purchases of meals and drinks for consumption on the premises are now purchased excluding GST using pre-tax dollars. Someone employed on a salary of $100,000 could purchase a $7.00 lunch meal for a pre-tax cost of only $3.28 – a saving of over 50%.
What happens if I leave my employer? – You must advise your employer who will advise boost salary of your leaving date, reconciliation will be prepared and either a credit or deduction for any outstanding amount will be made to your salary by your employer.
Is there any cost for the boostBistro service? – Yes, there is a small annual packaging fee to access the program this can also be deducted from your pre-tax salary. This fee is minimal in comparison to the benefits that you receive from the boostBistro facility.
How do I know how much I am spending? – We will provide you with a regular statement showing you how much money has been deducted by payroll and how much has been spent over the period. This will enable you to monitor your expenditure and easily see if you are under or over your budget.
What can I purchase at the on-site cafeteria? – You can purchase any food or drink from the cafeteria such as lunch, snacks, breakfast, dinner and refreshments.
How do I get started? – If your employer has the boostBistro facilities in place then contact your HR department or our packaging consultants @ customerservice@boostsalary.com.au . If your employer does not use boostBistro then you should provide them with our details and we will be pleased to assist in setting the program up for them.
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