Salary Packaging
For contractors who want to pay less tax, have more cash in their pocket and receive some great tax advantages based on their lifestyle, then this is for you. Salary Packaging includes the PAYG remuneration structure plus a range of tax deductable benefits. These include, but are not limited to:
A. Novated Car Lease
There are significant savings to be had on packaging a car into your gross salary, as all costs associated with financing and running the vehicle will be paid out of pre-taxed dollars. Therefore petrol, servicing, registration and insurance expenses are all included on a pretax basis. Furthermore you will save a massive amount by not paying the GST on your vehicle purchase. Some of the other benefits of a Novated Car Lease include:
- The car doesn’t have to be used for work purposes.
- You can Salary Package more than one vehicle, e.g.a vehicle for your partner.
- You can select the term of the agreement, 1 – 5 years.
- You can select the car you want: new, used* or even older classics* (*conditions apply).
B. Laptop and Mobile Phone
How would you like to purchase a laptop or a mobile phone, you need for work related purposes, and pay for it from your pre-taxed earnings? You can buy 1 each per FBT year. Keep your receipts & we can save you hundreds of dollars (nominal fee may apply in some cases). Living Away from Home Allowance – LAFHA*
Do you as a contractor work at least 130KMs away from your place of residence or are you working Interstate on a long term contract and intend to return to your usual place of residence after the contract is complete? Then the significant dollar advantages of LAFHA may be for you. Based on the individual’s circumstances, you may be entitled to food allowance and payment of rent on a pre-tax basis. (*Conditions apply)
C. Additional Super contributions
You as a contractor pay only 15% tax on additional super contributions to your nominated super fund. Therefore making superannuation contributions in excess of the compulsory 9% can represent a very sound investment strategy and significantly reduce your income tax payment.
D. Other Salary Packaging Deductions* for work related expenses include:
- Mobile phone bill
- Internet dial up and Broadband access bill
- Home phone line bill
- Home office / portion of rent
- Desktop computer and Printer
- Computer Equipment & Accessories
- Technical books and publications
- Subscriptions to newspapers and Magazines
- Membership to Professional Associations
- Income Protection Insurance
- Self education and training, Over $250
- Office consumables
*Conditions and nominal fees may apply
Should “Living Away From Home Allowance” (LAFHA) be an option for you, then operating via your own ABN or Company would be an expensive and difficult process. Salary Packaging via Independent Payroll Services would ensure you receive the maximum legal LAFHA benefit in every pay packet.