Tax Savings

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Pay less tax

This means less of your salary goes to the taxman - and more of it ends up in your pocket.

Here's an example.

Without salary packaging With salary packaging
Ann earns $60,000 each year Kate earns $60,000 each year
Her taxable income is $60,000 and she gets taxed $12,450. She salary packages $9,000 to her mortgage and $5000 in additional superannuation contributions
Ann then pays $9000 to her mortgage and $5,000 in additional superannuation contributions Kate's taxable income is reduced to $45,809 and she then gets taxed $7,980
Ann's take home pay is $33,550 Kate's take home pay is $37,829

Ann and Kate earn the same amount, but because Kate uses her pre-tax salary to package her mortgage and additional superannuation contributions, it reduces her overall taxable income. So she pays $4,470 less in tax than Ann does. That's a big tax saving.

The best part is, you can spend your extra tax savings on whatever you choose.

Ready to find out more?

 

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