How much are Healthcare workers allowed to Salary Package?

Few people put in the hours and elbow grease of healthcare workers, not to mention the crucial community service provided by these folk. Many of us would agree that our doctors, nurses, midwives and ambulance staff deserve recognition.

There are over a million Aussies working in the health sector and if you’re reading this, chances are you’re one of them! So the news is good – depending on your employer, you could put $9,010 of your before tax dollars towards regular day-to-day living costs that attract FBT – such as groceries, power bills and mortgage or rent repayments. Employees in many other sectors aren’t eligible to package such items.

You could also be eligible to package up to $2,650 in meal entertainment or venue hire.

Additionally, you may be eligible take out a novated lease: a three-way agreement between you, your employer and a financier in which you could pay for your car repayments and all its running costs with a combination of pre- and post-tax dollars.

And, as with other sectors, health care employees can package however many FBT-free benefits they like, including work-related expenses and self-education.

What are your potential savings?

Suppose you earn $60,000 per year. By salary packaging up to your maximum entitlement ($9,010 in living expenses plus $2,650 in meal entertainment/venue hire), your taxable income could be reduced by $3,644.

These tax exemptions can significantly boost your disposable income. It’s a key factor to consider if you’re thinking about a job in the health sector – and if you’re already there and not salary packaging… what are you waiting for?

To find out if you’re eligible, speak to your employer, get in touch online, or give us a call on 1300 30 39 40.

Assumptions: The estimated potential tax benefit is based on the assumption that an eligible employee salary packages the specified amount. FBT rates effective 1 July 2023 and PAYG tax rates effective 1 July 2024 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit & Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded. Important information: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. RemServ may receive commissions in connection with its services. Remuneration Services (Qld) Pty Ltd | ABN 46 093 173 089 (RemServ)