Salary Packaging

When offered the option by your employer in salary packaging, you should consider how it may improve your take home pay.

Salary packaging made easy:

  • Salary Sacrifice is an agreement between you and your employer to trade some of your salary for non-cash benefits.
  • The benefits that you choose to package are ultimately dependent on who your employer is. This is based on what the Australian Taxation Office (ATO) will allow and what is available in your employers’ salary packaging policy.
  • The amount and duration of your package depends on your requirements. Boost Salary are available to assist in helping you determine what would best suit you.
  • Each pay period your employer will withhold the amount you have designated to sacrifice from your salary, tax the remaining salary and then pays you the lesser amount.
  • The amount that has been withheld by your employer is then used by Boost Salary to pay for the benefits you have selected.

Services Available:

  • Relocation expenses
    • Removal of Furniture
    • Storage costs
    • Packing/ unpacking
    • Storage insurance
  • Laptops/ Tablets/ iPads
  • Airline memberships
  • Education expenses
  • Remote Area Benefits

Example 1: Salary Packaging $9,095 for living expenses

You agree to package $9,095 per year for living expenses. Each fortnight $349.80 is packaged from your pre-tax (gross) salary, resulting in a lower income tax deduction as the income tax is based on your new (lower) gross salary.

 

Without Salary Packaging

 

With Salary Packaging

Gross Salary

$45,000 $45,000

Less living expenses ($349.80 p/week for 24 weeks)

$0 $9,095

New Gross Salary

$45,000 $35,905

Estimated Income Tax

$7,725 $5,024

After Living Expenses Payments

$9,095 $0

Disposable Income

$28,180 $30,881