Ans: Salary Packaging is your Employer paying some money, from your weekly or fortnightly income, to a Salary Packaging Administrator, to pay for some personal expenses without this income being taxed. The Administrator can pay the nominated personal expenses for you, or you can pay for the expenses upfront and get reimbursed by the Administrator from the funds your Employer has paid into your Salary Packaging Trust Account.
Ans: Salary Sacrifice is your Employer paying some voluntary contributions, from your weekly or fortnightly income, to a complying Superannuation Fund, without this income being taxed. The Super Fund then pays a Contributions Tax of 15% to the ATO from the contributions made – therefore the is being invested. Lower than the typical PAYG Tax rate.
Ans: A Fringe Benefit is a ‘payment’ made, on behalf of an Employee, for a non-work-related item such as a Mortgage Payment, paid directly to the Bank without having paid PAYG Tax on that income.
No, as long as your Employer offers it, Salary Packaging can benefit part-time and casual Employees. It is a Tax Benefit, so very simply you need to be paying tax to be able to save paying tax.
You have to be paying tax to get a tax benefit.
The minimum income you need to earn before you pay any tax is $18,200; however, the minimum income will be above this amount based on your personal situation.
As there are many factors that influence the amount you need to earn before receiving a financial benefit, you should seek professional advice to identify the personal benefit for your situation.