Imagine if you could pay for some of your living costs before the tax man gets his cut? Salary Packaging allows you to pay for a variety of your everyday expenses with your before tax income – this will lower your taxable income and you will pay less tax!
Eligible employees working in a public or private not-for-profit hospital setting can salary package up to a CAP limit of $9,009 per year. Those of you who are working for another not-for-profit or charitable employer can package up to $15,899 per year as of 2020.
A simple and convenient way to do this is with an Everyday Purchase Card!
For each pay, a certain amount of your pre–tax pay will be transferred to your Everyday Purchase Card! This card can then be used for your everyday expenses such as:
- Utility bills
- Movie tickets
- Christmas and Birthday presents
- Restaurant meals
- Gift vouchers
These expenses would usually be paid from your after-tax money, but now you can have the ability to pay for these costs with your pre-tax payments!
Using the Everyday Purchase Card to salary packaging your various expenses is easy and convenient. The balance on your card can be spent instantly at any time! You can also check the balance on your card at any time with any ATM, over the phone, or with internet and mobile banking.
There is a lot less paperwork involved – you don’t need to keep receipts, send in claims or wait to have your expenses reimbursed.
Contact our team at FAA Group today to see if you’re eligible for an Everyday Purchase Cards and learn about your options on how to potentially save thousands every year!