Salary packaging and remote area benefits

Employees who live and work in an area classified as Remote by the Australian Taxation Office (ATO) may be eligible to salary package the cost of rent, mortgage interest, residential utilities, holiday transport and property purchase.

Only 50% of the remote area benefits are counted towards your annual living expenses limit, the other 50% is in addition to this, allowing eligible employees to salary package more and increase their take home pay.

Remote Area Rent

If you are renting a property you can salary package your rental costs as long as the lease agreement is in your name and you are 100% responsible for the cost. To get started, you must provide a copy of the lease agreement which should include lease start and end dates along with the rent cost.

Remote Area Mortgage Interest

You can salary package the interest portion of your home loan repayments as long as it is the usual home you live in (primary residence).

Utilities

If you are salary packaging Remote Area Rent or Remote Area Mortgage Interest, you may also claim utilities such as electricity and gas.

Remote Area Residential Property Purchase

If you have purchased a property in a remote area as your primary residence, you can salary package the cost of the property/land as per the original contract of sale providing that:

• The cost of the property relates to building* or purchasing a house and land, or an extension of a house
• You are working for your current employer at the time of purchase.

Remote Area Holiday Transport

If you live in a remote location and are travelling for a holiday, you can salary package your travel expenses to the nearest capital city providing:

• You travel for at least three or more working days
• You travel by commercial transport (i.e. flight, bus, train or ferry)
• You must provide a signed remote travel declaration with the costs.

This also extends to your immediate family (spouse and/or your children).

 

For examples on how you could save with remote area benefits, view the ‘Remote area benefits” fact sheet in the fact sheet library here.

 

 

 

*Note: If purchasing land, you must commit to building on it within six months and living in the property within 18 months. The property must also be your primary place of residence, it cannot be an investment property.

Information in this factsheet is general in nature and provided without reference to your organisation policies or your personal circumstances. You should seek independent financial advice if you are unsure whether this benefit is right for you.