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Salary Packaging: Getting Remote Area Benefits

Give yourself a pay rise through salary packaging

If you live and work in a regional and remote location in Australia, you may be able to take advantage of remote area salary packaging to increase your take-home pay.

By using your pre-tax salary to cover eligible expenses such as rental costs, mortgage interest, or residential electricity and/or gas expenses, you could enjoy significant tax savings while reducing your overall annual living expenses limit.

Remote area benefits are designed to reward those living away from the nearest capital city, making it easier to manage your primary residence expenses or your lease agreement. Speak with your current employer or seek independent financial advice to determine your eligibility criteria and discover how much you could save.

Calculate my savingsAm I eligible

Make the most of living and working remotely

Living in an area classified as remote offers unique opportunities for financial benefits. Whether you live in an employer-owned property, rent a private home, or pay the interest portion of your remote area mortgage, remote area salary packaging allows eligible employees to cover these costs using their pre-tax salary.

Additional savings may apply to remote area residential fuel (electricity and/or gas costs), and even remote area holiday transport and travel expenses for your immediate family.

The benefits you receive can vary depending on your personal circumstances, so it’s important to understand your financial situation and how your employer offers fringe benefits in your remote location. With the right approach, you can pay less tax and put more money in your pocket each week.

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Am I eligible for Remote Area Benefits?

To qualify for remote area benefits, you must live and work in an Australian Tax Office-designated remote area, and your employer must agree to this mutually beneficial arrangement. Eligibility criteria may vary depending on your personal circumstances, so it’s important to confirm your options with your employer and explore how remote area salary packaging could apply to you.

What benefits can I get in a salary package?

Eligible employees living remotely may be able to salary package the following remote area benefits using their pre-tax salary:

  • Remote Area Rent: Reduce your rental costs by packaging up to 50% of your rent.
  • Remote Area Mortgage Interest: Save on the interest portion of your home loan for your primary residence in a remote location.
  • Remote Area Fuel: Salary package residential utilities such as electricity and gas for your primary place of residence.
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How salary sacrifice remote area benefits work: real-life example

Harry lives in Emerald, QLD, and works for a machinery equipment firm in the same area. As the area qualifies as a remote area, and his employer offers this benefit, Harry is eligible to package 50% of his rental costs as tax-free.

Here’s how Harry saves:

  • Harry currently pays $600 per week in rent.
  • By salary packaging $300 per week using his pre-tax salary, he reduces his taxable income.
  • On a salary of $73,000, this arrangement saves Harry approximately $5,131 annually, or $98.67 net per week.

This significant tax saving helps Harry increase his take-home pay while enjoying the financial advantages of remote area salary packaging.

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Maximising Remote Area Benefits Salary Packaging: Tips and Strategies

If you’re eligible for salary packaging remote area benefits, there are ways to make the most of them beyond simply packaging rent or mortgage interest. Here are a few strategies to help you boost your take-home pay and reduce taxable income efficiently:

Combine Multiple Benefits

Some employers allow salary packaging of multiple expenses, such as accommodation plus utilities or mortgage interest. Using these together can amplify tax savings and reduce your overall taxable value.

Plan Around Your Pay Cycles

Align your salary packaging contributions with your pay schedule to maximise cash flow throughout the year. Timing can also help you manage fringe benefit tax liabilities more effectively.

Keep Detailed Records

Track all remote area expenses carefully, including payments on your usual home, leases, or any land you may own. Accurate documentation ensures you claim the full benefit without issues and protects your rights under the original contract.

Review Annually

Tax laws and ATO guidelines can change, so reviewing your remote area benefits each year ensures you’re always optimising your take-home pay. Even small adjustments to your packaging can influence reimbursement amounts for utilities or travel.

Seek Professional Advice

Financial advisors experienced with remote area salary packaging can help you uncover lesser-known benefits and maximise what you can claim. If you’re employed in a remote area, expert guidance can make a significant difference in the amount you save and help you structure your benefits efficiently.

Why this matters:

By taking a strategic approach, remote area benefits can do more than reduce your tax, they can help you plan your finances, save for larger expenses, or fund occasional travel without compromising your income.

Why Salary Packaging Australia?

Salary Packaging Australia are the specialists in novated leasing and salary packaging for employers right across the country. Our team will handle everything for both you and your employer. It’s a ‘win-win’ for everyone.

Novated Lease | Remote Area Benefit | PBI Benefit | Exempt Benefit | Rebatable Benefit | Minor Exempt Benefits

Thousands of Australian remote & regional workers love salary packaging through us

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Getting into the details

Fact Sheet

Learn more and see a real-life example of how much you could save

Blog: The Little Known Salary Packaging Perk

Blog: How to save thousands in Tax and help out your community

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See how S.P.A. can help decrease your expenditure whilst saving you income tax each pay cycle!

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.

Need help or want to discuss?

Contact our team directly, we are here to help

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Need help or want to discuss?

Contact our team, we are here to help

CALL 1300 786 664