There are some real benefits to working for a Rebatable Employer. For instance you may be able to pay your mortgage, buy a laptop or pay your education fees with your pre-tax salary, which in turn increases the amount you take home each pay day.
Pay for some of your living expenses from your pre-tax salary
Am I eligible for Rebatable Employer Benefits?
To be eligible, you must work for a Rebatable Employer, including non-profit organisations, religious entities, charities, scientific or public educational institutions, clubs, societies and associations, and your employer is agreeable to the mutually beneficial arrangement.
What benefits can I salary package?
- Mortgage Repayments
- Private Home Rental
- Meal and Entertainment expenses
- Living Expenses
- School & University Fees, etc.
- Laptops, Mobiles & Devices
- Superannuation Contributions
- Airport Lounge Membership
- Professional Journal & Body Costs
- Novated Motor Vehicle Lease
How it works
Gavin is a head of department at the local grammar school and has a salary of $112,000 per annum before super. His take home pay was $3,188, every fortnight before he paid the mortgage on his house, which is $610 every fortnight. Therefore after he paid his mortgage, he had $2,578 left. We set up his salary package to pay his mortgage from his pretax salary by using his available cap and included the FBT liability after the rebate of 47% was applied. His take home pay after his mortgage was paid went to $3204.11 every fortnight after reimbursement. Effectively this meant that his pay increased by $15.91 every fortnight, which equates to an extra $414 per year.
Catherine is a high school principal and has a salary package of $145,000 per annum before super. Her take home pay was $3,976, every fortnight before she paid the mortgage on her house, which is $610 every fortnight. Therefore after she paid her mortgage, she had $3,366 left. We set up her salary package to pay her mortgage from her pre-tax salary by using her available cap and included the FBT liability after the rebate of 47% was applied. Her take home pay after her mortgage was paid went to $4,033 every fortnight after reimbursement Effectively this meant that her pay increased by $56.83 every fortnight, which equates to an extra $1,478 per year.
Have any questions or need to learn more?
* This calculator contains general information and does not necessarily take all of your personal circumstances into account. Salary Packaging Australia encourages you to seek professional, independent tax or financial advice and to consider whether this information is right for you before making a decision. The availability of any packaging benefit is subject to your employer’s approval and compliance with the Australian Income Tax Assessment Act (1997). The Australian Taxation Office can provide advice on compliance.