On this page:
- Doing your tax return
- Education debt
- Child support and Government payments
- Medicare levy surcharge and private health insurance rebate
- Remote area benefit
- Car parking
- Relocation costs
- Religious practitioners
- Division 293 Tax
- Reportable fringe benefits
- Car fringe benefits
- Company provided vehicles
These fact sheets dive in and give greater detail on salary packaging benefits and their impacts. Speak with your AccessPay advisor for guidance on setting up a salary packaging arrangement that works best for you.
Participation in your employer’s salary packaging program enables you to reduce your taxable salary legally, and therefore, pay less income tax. One of the consequences of participation is that an amount known as a ‘Reportable Fringe Benefits’ will be recorded on your PAYG payment summary.
To find out more information, see the Reportable Fringe Benefits Amount Fact Sheets:
Salary packaging can still be beneficial if you have an education debt (such as HELP); however, it is likely to increase your fortnightly education debt repayment by 1% to 2% of your gross income. So while you may repay your debt at a faster rate, you will still make considerable tax savings.
We suggest that, as your required education debt repayment will increase at tax time, you advise your employer’s payroll office to tax you an additional amount each fortnight so that when end-of-financial year calculations are made, a lump sum will be available to make your education debt payment.
If you have an education debt, please disclose this to AccessPay so we can provide assistance with this calculation and ensure your salary packaging is set up correctly.
A salary packaging arrangement may impact the amount of benefit you receive from Centrelink, and can also impact on other financial payments such as Child Support Payments.
Guidance regarding the potential impact of salary packaging on the Medicare levy surcharge and Private Health Insurance Rebate.
Employees who live and work in an area classified as “Remote” by the Australian Tax Office (“ATO”), ,may be able to access Remote Area Housing Assistance and/or Remote Area Holiday Transport
If you work for a registered charity, in public education or for a not for profit scientific institution, and your employer offers car parking as a salary packaging benefit, you may be able to salary package the cost of parking for work.
While relocating for work can be a hassle, it doesn’t need to cost the earth! We can help you save money by salary package these costs.
If your work as a religious practitioner involves pastoral duties, you may be able to salary package up to 100% of your income without being subject to an FBT threshold.
Guidance regarding concessional super contributions and high income earners.
Salary packaging reduces your taxable income and is then represented on your PAYG payment summary as Reportable Fringe Benefits. Your Reportable Fringe Benefits amount can affect other entitlements.
Where an employee is provided with private use of a company vehicle, a fringe benefit occurs. Depending on the type of vehicle provided, the fringe benefit will either be a car fringe benefit, or a residual benefit.
If you are provided with a company vehicle, your salary packaging will usually be impacted as the provision of a company vehicle is considered a car fringe benefit and contributes to the annual salary packaging threshold.