Salary packaging is an employer provided benefit where you and your employer agree to forego a portion of your income for ‘other’ non-cash benefits. This portion of your pre-tax salary is ‘sacrificed’ in return for employer provided benefits. These non-cash benefits include payment of an employee’s mortgage repayments, rent, reimbursement of credit card purchases and other living expenses with pre-tax dollars.
To qualify for salary packaging the employee must provide evidence that their salary packaging payments are for legitimate personal expenses (e.g. loans, rent, school fees, rates etc.). SalaryPackagingPLUS require each employee to submit a copy of their evidence.
Upon the commencement of your salary packaging arrangement and each year thereafter, SalaryPackagingPLUS check and update the employee packages to ensure the evidence is valid. This is called the annual review.
Using these expenses as evidence will result in the reduction of the amount able to be salary packaged under the capped limit. SalaryPackagingPLUS recommends using the MyCardPlus Living Expenses Card to pay for these expenses.
The evidence of either one or a multiple of the above expenses can be submitted to make up the value of your annual capped limit amount.
The above expenses can be salary packaged in addition to your annual capped limit and are subject to an aggregate limit of $2,649.00 per FBT year.
The above type 3 expenses are exempt from FBT and can be salary packaged in addtion to your capped limit amount.
The salary packaging benefit offered by your employer is related only to the expenses incurred by you, your partner or your dependent.
Generally, evidence can be back-dated up to 12 months. However, you are only able to claim expenses that you have paid for whilst employed at the organisation.
The evidence you provide cannot be resubmitted or reused.
Evidence can only be submitted for expenses that you or a member of your household have paid for.
For most “fixed” expenses, one copy is sufficient evidence to enable SalaryPackagingPLUS to calculate a regular fixed deduction from your pay:
|Fixed Expenses||Evidence Required|
|Mortgage||Loan statement showing minimum payment required|
|Personal/Car Loan||Loan statement showing minimum payment required|
|Rent||Tenancy agreement or statutory declaration or letter from landlord stating amount & frequency due|
|Health Insurance||Payment schedule or letter from insurer|
If the expenses vary, i.e. line of credit, interest only loans, council & water rates, or credit card purchases, a copy of the ongoing bills/payments are required by SalaryPackagingPLUS to determine the value of the evidence:
|Variable Expenses||Evidence Required|
|Credit Card Purchases||Copy of statements showing all purchases made (cash advances not included)|
|Redraw and Interest Only Loans||12 months bank statements showing interest paid|
|School Fees||Copy of invoice for each term|
|Child Care||Copy of tax Invoice or statement of account|
|Rates||Annual rates notices|
|Medical or Dental Expenses||Copy of invoice for each visit|
A) Your evidence should be supplied with your Salary Packaging Application Form when applying to commence a salary packaging arrangement. Simply attach your evidence to the form and mail, fax or scan/email to SalaryPackagingPLUS.
1. Complete the form as required:
2. Sign declaration and post, fax or scan/email to SalaryPackagingPLUS.
It is necessary to confirm that you acknowledges the compliance requirements when submitting your evidence. If you do not sign the declaration or fail to complete the form, your claim will not be processed, and will be returned to you for completion.
If you need help or need more information about salary packaging or novated leasing, please call 1300 40 80 46 or click here to request a call back from one of our experienced consultants.