![]() ![]() A fixed amount is then taken out of your fortnightly pay before tax is deducted.Įstimating your salary packaging savings is simple. The amount you save is calculated at the commencement of your package and will depend on how many fortnights it has been structured over. Medicare levy surchargeĪll taxpayers currently pay a 2.0% Medicare Levy which is deducted with their tax.NSW Health offers salary packaging to eligible staff on the condition that the benefit, through saved income tax, is shared equally between the staff member and the organisation. For more information, contact SalaryPackagingPLUS. However, you must advise Centrelink that a portion of your pay will be tax free and you will have an exempt reportable fringe benefit. If you receive Family Tax Benefit part A or B, there should be no change in the benefit you receive from Centrelink. Family assistance payments and salary packaging If you pay/receive child support or have HECS/HELP, it is strongly recommended that you consult a financial adviser. Given that salary packaging affects an employee’s taxable income and adjusted fringe benefits amount, the employee’s child support payments will be affected. less any child support payments the employee provided to another person.certain tax-free government pensions or benefits received.deductible personal superannuation contributions.Child support payments and salary packagingĬhild support payments are calculated by reference to adjusted taxable income (ATI) which is your taxable income plus: However, the grossed up value of certain packaged benefits may be included in your RFBA which could therefore increase your HRI. Salary packaging reduces your taxable income and hence your HRI. total net investment loss (which includes net rental losses). ![]() reportable employer superannuation contributions.reportable fringe benefits amount (RFBA).Higher Education Loan Programme (HELP) repayments are calculated based on your HELP Repayment Income (HRI) which is your taxable income plus: You can also stop your package at this time. If there is sufficient evidence, it will be automatically renewed. Before the start of the new FBT year you will receive a letter outlining your options. The evidence must total $9,009 or more for future package years. There is an option to continue salary packaging after the current FBT year by carrying over an excess amount. Reimbursement excess and package continuation If any of the above occurs, it is your responsibility to notify the SalaryPackagingPLUS team so appropriate changes to your package can be made.Īlso, if you receive a salary increase during the year, either as an award increase, higher duties allowance, routine incremental advancement or from an appointment to a more senior position, the associated additional salary will not be included in your salary package arrangement until the next packaging year. annual leave and long service leave paid in advance (LSL on half pay).The following things will affect your salary packaging: Other circumstances may affect salary packaging Please note it is your responsibility to retain original documents for at least five years in accordance with current taxation laws. If you package to the full $9,009 in a fringe benefit year, this will show as a reportable fringe benefit of $16,998. This will equate to the cost of your benefit items factored up by a rate provided by the Australian Taxation Office, currently 1.8868. Your yearly income statement will also include a 'grossed-up' reportable fringe benefits amount. Your tax for the year and the basic Medicare Levy are calculated on this reduced gross salary, plus or minus any other non-NSW Health items on your tax return. Income statements (group certificates)įringe benefit tax items such as salary packaging are reported on income statements for amounts over $2,000 and are shown as a reportable fringe benefit.Īt the end of the financial year, your income statement will show your gross salary as your award salary plus overtime and allowances less your benefit items, the administration fee and NSW Health’s share of the tax saving. They can only advise on how to participate in the scheme and what the benefits are. SalaryPackagingPLUS cannot give financial advice or personal tax advice. The Information for Financial Advisors page has been developed to assist financial advisors. You are strongly advised to get independent financial advice before you sign a salary packaging agreement. ![]()
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