Salary packaging, also known as salary sacrificing, is an Australian Taxation Office-approved way of restructuring your income to allow you to save on certain expenses. Items that can be packaged include novated leases, meal entertainment and additional employer superannuation contributions.
ACT Health employees can access many salary packaging options with local provider Paywise. These include novated leases, airport lounge memberships and extra superannuation contributions. For more ACT health salary packaging options, click here.
Novated Lease
Novated Lease is a popular form of salary packaging that involves your employer paying the leasing company directly out of before-tax wages, thus reducing your taxable income. This arrangement is also known as a ‘novated car package’ or ‘salary sacrifice’. It offers the potential to save tax on leasing a new or used vehicle and running expenses like fuel and insurance.
The most common running cost included in a fully maintained novated lease is insurance and servicing, which the salary packaging provider often arranges as part of the arrangement. It can add a layer of complexity and additional costs to the collection and potentially exclude you from further discounts on your vehicle, which may be available from other providers who are not salary packaging specialists.
Another benefit frequently highlighted in salary packaging advertising material is that employees do not pay GST on the vehicle purchase price. However, this can be misleading, as the GST is payable by the finance company who buys and holds the car on your behalf and is therefore claiming back the GST. For more ACT health salary packaging options, click here.
Fleetcare Novated Lease
Fleetcare Novated Lease is one of the most common salary packaging options, allowing employees to access concessional tax rates on their vehicle purchase and running costs.
It involves a three-party agreement between the employee, employer and Fleetcare. Known as a fully maintained novated lease, it includes the vehicle’s fixed running costs (including registration, insurance and servicing) in the monthly rental payments. It is common for novated lease companies to provide quotes and comparisons stating projected savings, but these only compare the leasing option with purchasing the exact vehicle without salary packaging. It does not include ongoing costs such as fuel, tyres and maintenance.
ACT Government Credit Card
Salary packaging is an excellent way for ACT government employees to increase their take-home pay while potentially saving money on expenses they might have had to pay anyway. Whether through a Fleetcare novated lease to help buy your dream car or extra super contributions to secure your retirement, salary packaging can provide several benefits.
Vehicle-Solutions is a Canberra-based salary packaging company that can help you get started. They’re dedicated to complete transparency of fees and providing excellent customer service – they answer the phone within three rings and never use voicemail.
Salary packaging offers several benefits for Australian Capital Territory government staff, including lower income tax and access to GST savings on vehicles, fuel, servicing and tyres. Learn more about the options available by speaking to an experienced financial adviser or authorised representative today. For more ACT health salary packaging options, click here.
ACT Health Salary Packaging Options
ACT health salary packaging is a valuable benefit that can help you save money on expenses you would otherwise have to pay out of your pocket. It allows you to reduce your taxable income by taking out the cost of certain items or fees from your before-tax salary, so more cash is left in your pocket each fortnight. It is also known as salary sacrificing.
The benefits of salary packaging can include things like a car, phone, laptop or extra super contributions. Some items are subject to Fringe Benefit Tax (FBT), so checking the rules and speaking to a financial professional before accessing this option is essential.
SmartSalary is a local, family-owned company that provides salary packaging services to Canberra Government employees. They are committed to full transparency of fees and excellent customer service, with team members answering calls within three rings and not leaving them to voicemail.