If you have yet to hear the term ’salary packaging’, you have come to the right place, as in this short article, we take an in-depth look at salary packaging and what it can mean for you. This involves using a third party to work with your employer to amend your salary to allow you to pay your bills or cover unexpected medical bills. There are many options with salary packaging, which we look at in this article. Novated car leasing
Buying a car with novated leasing actually saves you money, as you pay less tax; salary package is also known as salary sacrifice, which can cover vehicle maintenance, tyres and insurance; you work out a deal with your employer and they deduct pre-tax to fund your costs. If you take the monthly car payment, plus all running costs, this can be covered and you make a single payment from your salary every month.
When you take out a novated lease on a new car, you end up paying less GST, which is one way of minimising taxes. You can incorporate fuel, maintenance and other vehicle costs, so you never have to struggle to make an important payment. All you have is a single affordable monthly payment and because the deductions are pretax, you save on GST.
In most cases, the laptop/tablet/smartphone you need for work can be included in a salary package; such devices are integral and using salary packaging, you have the funds you need to acquire IT equipment.
You can salary package a master’s degree or PhD, enabling you to learn now, when it is needed and not have to worry about tuition fees. Once you have calculated the total cost of the course, an agreement can be reached that sees you make a monthly payment directly from your salary, which is done by your employer. Click here for information on developing small businesses.
If you have torelocate as part of your job, you could bundle all relocation costs (transport, packing, property deposit and furniture acquisition. If you would like to explore the potential that salary packaging offers, search online for a leading Australian provider that operates within the scheme.
Income protection insurance
You can take out a policy that covers your payments in the event you are unable to work, which brings peace of mind. You can also add to your superannuation and plan for your retirement, which many people in their thirties decide to do.
Talk to your employer about salary packaging and see what is possible; whether you are looking to buy a new car or would like to study an MBA, salary packaging is one way to access the funds. Many Australian employers are happy to help their employees by entering into salary packaging; check your employer’s website and see if you can find anything.