Salary Packaging, also known as salary sacrificing, means allocating a portion of your wage to pay certain expenses before tax is calculated. This is an Australian Tax Office approved way to save on tax, lowering your taxable income and increasing your take home pay. As Interchange is a not-for profit organisation, our staff have access to these benefits.
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What is Salary Packaging?
Am I eligible?
Staff who work at least an average of 10 hours at Interchange a week, and who have been working at Interchange for six months or more, will be eligible to apply.
Am I limited to how much I can Salary Package?
The yearly limits are currently: –
- Living expenses – $15,900
- Meal Entertainment expenses – $2,650
What are the types of Salary Packaging Available?
General Living expenses
- General living expenses
- Buy the weekly groceries
- Fill your car with petrol
- Dine out at a restaurant
- Travel or book a holiday
- Pay your gas, electricity & phone bills
- Pay your council rates and water rates
- Purchase theater and movie tickets
- Shop for clothes
Meal Entertainment expenses
- Meal and entertainment expenses
- Breakfast, lunch or dinner with friends or family at a restaurant/cafe
- Drinks & food while on holidays at a resort or hotel
- Taxi travel to a club or restaurant where you intend to eat and drink
- Accommodation within Australia or overseas; including hotel or motel room, caravan park or bed-and-breakfast accommodation
- Venue hire expenses; for example the hire of a private function room for a family celebration, like a wedding or birthday party.
What can't I use my card for?
- Mortgage and personal loan repayments
- Credit card bill payments
- Withdrawing money from an ATM or when making EFTPOS transactions
- Setting up recurring direct debit payments
- Money transfers – either from another account to your card, or vice versa
- Services such as mini-bar, room service, laundry, in-house movies, and waiter hire
- Accommodation and venue hire expenses incurred while traveling for work related purposes
How much will it cost?
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The current cost of the Salary Packaging card is:
- Meal & Entertainment Expenses – $8.80 p/month debit directly from the card each month
- Daily Living Expenses – $8.80 p/month debit directly from the card each month
For payments made to loans/rent there will be no charge.
What difference does Salary Packaging make?
How much you save is dependent on your personal circumstances. Follow the link for a general guide to what you may save. Please note these savings don’t take into account other considerations.
What else should you consider when Salary Packaging?
Although your Salary Packaged amount is not taxable, it is used for calculations by the ATO.
This includes:-
- Working out the amount you must repay against your HELP debt
- Determining your eligibility for family assistance payments
- Working out your child support obligations
- Calculating your liability for the Medicare levy surcharge
*Please note
We are not able to provide financial advice on your individual circumstances, and if you are unsure on how Salary Packaging could benefit you, please consult an independent financial advisor.