Salary Packaging your rent or mortgage:

What are the advantages of salary packaging your rent or mortgage?

The ability to salary package your rent or mortage is a benefit offered by numerous employers to their staff.  It enables employees to pay for all or part of their living accommodation expenses in pre-tax dollars. This means that you pay less tax and have more money in your pocket every week.

 

Are you eligible?
This all depends on who you work for.  If your work is based within a Hospital or your employer is a Non for Profit organisation then you may be eligible to package your rent or mortgage. The first step is to find out if you are able to salary package your living accommodation.  You can do this by speaking to your employer, but they may not even know that they can offer you this benefit at no cost to them.

The next step is to book an appointment to discuss your situation and to ensure that you have set up the correct salary packaging in your best interest and that all available benefits are maximised.

 

Here is an example: 
Jane, Jack and Anna are all on the same income but are employed by different companies. Jane is unable to package her rent at all while Jack and Anna are able to, but due to their employers they are able to package different amounts each year.

 

	Jane	Jack	Anna
Gross Income	$55,000	$55,000	$55,000
Less Salary Packaged Expenses (eg Rent)	-	$9,000	$16,000
Taxable Income	$55,000	$46,000	$39,000
Income Tax	$10,050	$7,350	$5,250
Medicare Levy	$825	$690	$585
Net Pay (per Annum)	$44,125	$37,960	$33,165
Minus Expenses (eg Rent)	$16,000	$7,000	-
Net Disposable Income (per Annum)	$28,125	$30,960	$33,165
Net Disposable Income (Fortnightly)	$1,081	$1,190	$1,275

 

 

As you can see from the example above Jack has saved himself $2,835 and Anna has saved himself $5,040 over the year. As your income increases so do the savings that you receive by salary packaging.

How would you like an extra $194.00 in your pocket every fortnight?

With these kinds of savings possible do your really think you can afford to miss out on these savings?

 

How can we help you?
We are able to show you what you are allowed to package and how to maximise your salary packaging to ensure that you are making your money work for you.   We can explain the other benefits available to salary package, such as a car, electricity and your superannuation among others.

Click here to come in and see us today to find out information, specific to your situation in a free two hour consultation.

Prepared by John Hehir - Financial Advisers Australia (FAA)