Here are some real examples of people taking advantage of salary packaging.
Registered nurse in a public hospital
Julie is an employee of a public hospital and earns $60,000 p.a. As she works for a public hospital, she can access approved benefits tax free up to $9,094 annually. She has chosen to package her monthly credit card bills and rental payments worth $9,094.
If Julie was not salary packaging these expenses, she would be paying $9, 094 p.a. As Julie is salary packaging these expenses, she is only paying $7,394 p.a. This equates to a saving of $1,700.
Administrator in a charitable organisation
Thomas is an employee of an Australian charity and earns $35,000 p.a. As he works for a charity, Thomas can package an extensive list of benefits up to the value of $16,049, as he works for a charity. He has chosen to package his utility bills (costing $3,000) and his mortgage (costing $13,049).
If Thomas was not salary packaging these expenses, he would be paying $16, 049 p.a. As Thomas is salary packaging these expenses, he is only paying $13,163 p.a. This equates to a saving of $2,886.
Executive in a privately owned business
Hayley is an employee of ABC Pty Limited and earns $120,000 p.a. Hayley packages her superannuation contributions and has a novated leased motor vehicle.
She contributes an additional $10,000 to her superannuation each year.
Her Toyota Camry cost $33,765 and she expects to travel around 20,000km each year over a three year lease. Her running costs include lease repayments, registration, insurances, petrol, services and tyres, totalling $15,282 each year.
If Hayley was not salary packaging these expenses, she would be paying $25,287 p.a. As Hayley is salary packaging these expenses, she is only paying $17,114 p.a. This equates to a saving of $8,173.
High school teacher in a private school
John is a school teacher at the local Grammar school, earning $65,000 p.a. John packages a novated car lease.
His Toyota Kluger cost $39,709 and he expects to travel 30,000km each year over a four year lease. His running costs include lease repayments, registration, insurances, petrol, services and tyres, totalling $18,762 per year.
If John was not salary packaging these expenses, he would pay $18,762 p.a. As John is salary packaging, he is only paying $13,291 p.a. This equates to a saving of $5,471.