Regardless of how frugal you are, life has some unavoidable costs.
- Groceries – we need to eat!
- Utility Bills – we need electricity!
- If you’re lucky enough to own a home, there’s rates and water.
- If you’re a parent, there are school fees.
All of these costs, including your rent or mortgage, are paid with your after tax income. If you have any money left over, you could do something fun like dinner and a movie or put it away for a special occasion.
Imagine if you could pay for some of these living costs before the tax man gets his cut? If your employer is in the health or charity sectors and offers salary packaging, this is a reality for you!
Salary Packaging allows you to pay for an assortment of your everyday expenses with your before tax income – this will lower your taxable income and you will pay less tax!
Working for a public or private not-for-profit hospital you may be eligible to package up to $9,009 in living expenses each year, and if employed by a charity or other not-for-profit up to $15,899 each year.
That is not a small change and by salary packaging you could potentially save thousands. You can contact us to learn more about your options and start saving money on tax!