Salary packaging could be simpler than you think
Most people can save tax by salary packaging a few everyday expenses. Discover how you can benefit too with this simple salary packaging explanation.
How salary packaging works
Normally tax is taken from your salary before you spend it. You then pay all your expenses and are left with the remainder.
With salary packaging, your employer pays you the same salary - but instead of paying all your expenses after you're taxed, you pay for selected expenses before you're taxed. Expenses you would be paying anyway.
So you could pay less tax and end up with more spending money.
A quick salary packaging example
Two people earning the same income could end up taking home significantly different amounts. All thanks to salary packaging.
How RemServ salary packaging works at every pay cycle
Each pay cycle, your employer will:
- deposit your pre-tax contribution into your RemServ salary packaging account (we set that up for you)
- deduct tax from your remaining income
- deposit the balance into your personal bank account - as usual.
What does it cost?
We manage your salary packaging account in exchange for a small administration fee.
For a standard salary packaging account, depending on your employer's salary packaging policy you pay around $200 a year (including GST) - a negligible amount considering how much salary packaging may save you. (Additional charges may apply for other benefits, such as a novated lease, venue hire and Meal Entertainment.
Fees are paid out of your pre-tax dollars, and:
- do not contribute towards any capping limit
- do not attract FBT.
Want more information on fees? Simply log into My Employer Hub and refer to your Employer's Salary Packaging Information Booklet.
Learn about the benefits of salary packaging.
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