Salary Packaging For Contractors

What is salary packaging?

Salary packaging is a smart, easy way to restructure your income, giving you a number of cash-saving benefits. This is an Australian Tax Office-approved arrangement that benefits both employers and employees, providing a popular solution for making the most out of your income.

Under a salary packaging agreement, you can purchase items such as a car, a laptop or a mobile phone out of your pre-tax pay, instead of after tax. This means you can get a better deal on the item you want, lower your taxable income so you pay less tax, and end up with more money in the bank to play with.

How does salary packaging work?

When you enter into a salary packaging agreement with your employer, your payroll officer will deduct an agreed amount of funds from your pre-tax pay each pay cycle to cover the cost of the item in instalments. By paying for these items before tax, you are lowering your taxable income, so you pay less tax, and at the end of each pay cycle, you could end up with more money to spend on the things you want.

Salary packaging examples

The items you can purchase under a salary packaging agreement depends on your profession and the type of organisation you work for. Salary packaging car leases, laptops, mobile phones, and extra super contributions are some of the most popular arrangements that your employer might offer.

Novated lease salary packaging, for instance, allows you to roll all the costs of your new car – from the purchasing cost, to fuel, tyres, registration, servicing and more – into one simple monthly payment, which your employer makes on your behalf out of your pre-tax salary. This means you can drive away in your new car now, relaxed in the knowledge that you are making great savings, now and tomorrow.

Find out how salary packaging could benefit you

Click here to download our fact sheet. To find out more about salary packaging in Australia and how it could work for you, get in touch with PayMe today.

Why choose PayMe?

Find out how salary packaging could benefit you

PayMe offers, all salary packaging in-house so no paying more when you want to take advantage of these tax minimisation strategies.

Find out more about salary packaging in Australia and how it could work for you, get in touch with PayMe today.

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