About Salary Packaging - Employees
With FleetPlus Salary Packaging solutions, you can lease more than just new wheels and potentially save thousands.
Benefits of Salary Packaging
Salary Packaging allows you to reduce your taxable income, resulting in you paying less PAYG tax.
This can be a tax-effective arrangement depending on your personal circumstances and can result in a higher net salary position.
Salary packaging also provides benefits to your employer such as assisting in the retention of valued employees and attraction of key employees.
Salary Package More Than Cars
Salary Packaging with FleetPlus may be used on a wide range of work-related equipment and costs. It’s employer specific and the types of benefits and the amount you can salary package depends on your employer and industry you work in.
Super-charge your salary by packaging one or more of these popular benefits:
Portable Electronic Devices (Laptops, Notebooks, Tablet Computers)
Unlock a new device to stay connected with work! You can salary package one of each type of portable electronic device (e.g. iPad, mobile phone, laptop, etc.) during each fringe benefits tax year. To be applicable for this benefit your employer must confirm the item is primarily used for work and this should be supported by an appropriate portable electronic device usage policy
The ATO limits portable devices to fall under the following limitations:
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Easily portable and designed for use away from the office
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Small and light
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Can operate without an external power supply
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Designed as a complete unit (accessories & warranties not included
Income Protection Insurance
Income protection insurance safeguards yourself and your family from loss of income. By Salary Packaging this benefit you can receive tax savings in addition to peace of mind knowing your finances are covered if you become sick or injured and are unable to work.
There are some exceptions: you can’t claim a deduction for a policy that compensates you for physical injury, or where the policy is taken out through your superannuation policy and deducted from your super contributions.
You will be required to complete an employee declaration confirming that these expenses would be otherwise deductible on your tax return.
Education Experience
Broaden your horizons with learning a new skill or increase your knowledge through a self-education study. If you are studying for a course or qualification that relates to your current employment, you may be able Salary Packaging certain expenses by using pre-tax dollars. Salary Packaging means you don’t have to wait until tax time to claim on your job-related study.
Items related to the course can also be included such as stationery, textbooks & union fees.
There are a few things to note before asking your employer. Self-education expenses paid by your employer, HECS/HELP repayments or loan repayments cannot be Salary Packaged.
You will be required to complete an employee declaration verifying that the self-education expenses are work related.
Superannuation
Boost your retirement savings for later & enjoy the tax savings now by salary packaging additional superannuation! If your superannuation fund complies, these contributions will be classified as ‘employer contributions’ in addition to the regular superannuation contributions made by your employer. Salary sacrificed contributions are only taxed at 15%, compared to making after-tax contributions at your marginal tax rate. These additional contributions can increase your retirement pool of funds for that well-deserved luxury.
As of 1 July 2021, the annual cap for concessional contributions is $27,500 per annum for all individuals, regardless of age. This includes the compulsory employer contribution (currently set at 10.5%). Contributions exceeding the cap are taxed at your marginal tax rate plus an excess concessional contributions charge.
The salary sacrifice of additional superannuation contributions will be reported on your annual PAYG payment summary as a reportable employer superannuation contributions (RESC). RESC amounts are included in most income tests.
FleetPlus strongly recommends seeking independent financial and taxation advice to understand the impact of having a RESC amount reported on your annual PAYG payment summary.
Please refer to www.ato.gov.au for more information.
The Process is Easy
With FleetPlus providing the lease finance, it’s as easy as 1-2-3:
- You and your employer agree to salary packaging.
- For the fixed term of the Lease, your employer makes the monthly Lease payments on your behalf from your pre-tax pay.
- At the end of the Lease period you can pay a pre-determined residual amount to own the equipment or vehicle, extend the Lease for a further set period or sell it and use the funds to pay out the residual.
Got a question about Salary Packaging? Speak with our specialists today on 1300 353 381
