Did you know that you may be eligible to pay for expenses such as work related travel expenses, Living away from home allowance, In house child care fees, relocation costs and many more with your pre-tax salary, which in turn increases the amount you take home each pay day.
Am I eligible for Exempt Benefits?
Depending upon on your exact situation, i.e. where you live, your industry, and whether you undertake work related travel, we highly encourage you to reach out to us and we will discuss which exempt benefits you may be able to claim. We work with thousands of employers who offer this mutually beneficial arrangement to their staff as an employee incentive program.
What benefits can I salary package?
How it works
Living Away From Home Allowance
Fred is a project manager in Brisbane, QLD and has the opportunity to relocate to Cairns, QLD on an $82,000 salary. This is quite a large step for Fred as he has a wife and two school age children. Without committing to relocating, Fred has decided to utilise the LAFHA benefit, which will save him thousands in tax every year. This will allow Fred to package pre-tax salary towards his rent and living expenses. Fred can package his rent at $350 per week and $247 per week in living expenses totalling $597 each week in pre-tax income. This comes to a total of $31,044 per year. The tax saving would be approximately $10,502 per annum or $201.95 net per week.
Hannah is a lawyer working in Bathurst, NSW and after two years at her firm, she has been asked to take up a better position in the Sydney office on a $112,000 salary. Hannah decides to sell her home in Bathurst before making the move. Fortunately, Hannah can utilise the Relocation allowance, where she can package her moving costs, such as selling costs. In addition to this, Hannah can package her rent for the first 12 months. Hannah can claim back the selling costs including the advertising, legal fees, mortgage discharge fee and real-estate commissions totaling $28,667. Additionally, she can claim the rent in Sydney at $465 per week, totaling $24,180 for the year. The two amounts pre-tax is $52,847.00 giving a $18,204 advantage per annum, or $346.61 net saving each week.