The tax-saving potential of salary packaging.
Once you understand salary packaging, the tax-saving potential will become clear. Salary packaging allows you to access some of your salary before tax is taken out, which could lower your taxable income and potentially save you on tax.
As a health worker, your life is dedicated to looking after people. And we’d like to look after you by showing you how you could save on tax each year with salary packaging. Salary packaging is a workplace benefit that many of your co-workers are already taking advantage of.
How salary packaging can help make every dollar count
We know it sounds complicated but, simply put, salary packaging allows you to access some of your salary before tax is taken out. It means you could pay less income tax and make the most of your salary.
Whether you are a doctor, nurse, accountant, or cleaner - if you work for an eligible employer in the health industry, you could access salary packaging and take advantage of the tax-saving potential.
Nurse Donna earns 60K pa. How much could she save in tax?
Good question. On 60K, Donna could save $2,796 per year. Donna is eligible for the maximum cap of $9,010 to spend on living expenses before tax, which could lower her taxable income and allow her to save on income tax.
Watch our videos and discover how you could enjoy discover learn about the tax saving potential of salary packaging.
Salary Packaging Explained for Healthcare Workers
Working in healthcare, you can be eligible to package a range of expenses.
Signing Up Online to Salary Packaging with Remserv
You could have more money in your pocket each year while paying off your HECS debt sooner.
Salary Packaging with a HECS HELP Debt
A quick tutorial on how to sign up online.
So, what can you package?
There’s a wide range of items that may be available for you to salary package
As a person who works in health with a HELP HECS debt, salary packaging could still be beneficial, but it may affect your adjusted taxable income and repayment rates.
There are some important points to be aware of:
- It’s important to remember that salary packaging may affect your current taxable threshold, which could change the way the ATO calculates your repayments.
- The Australian Taxation Office (ATO) assesses you on your ‘adjusted taxable income’ when working out how much you should pay in HELP or HECS repayments. So with an increased in repayment income (which includes things like gross salary and salary packaged benefits), you may need to increase your regular HELP or HECS repayments, otherwise you may end up with a bill at tax time.
- If you choose to go ahead and salary package, you’ll need to ask your payroll department to deduct additional HECS-HELP repayments. How much? Maxxia has an online HECS-HELP calculator which will estimate the additional amounts you might need to request through your payroll, as well as your potential tax savings as a result of salary packaging.
You can crunch the numbers for yourself.
The tax-saving potential is clear to see.
Ready to salary package? Have your latest pay slip handy and let’s chat
Salary Packaging FAQs
Here are some answers to frequently asked questions to help you see salary packaging more clearly.
Salary Packaging: The estimated potential tax benefit is based on the assumption that an eligible healthcare employee with an annual salary of $60,000 salary packages to a $9,010 per annum limit. PAYG tax rates effective 1 July 2024 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Your disposable income will vary based on your income and personal circumstances.