Yes, you can! It is absolutely possible to salary package at more than one employer, however what you can package depends on each employer’s Fringe Benefit Tax (FBT) status. If you are working in the not-for-profit or public health sector already and making the most of your salary packaging entitlements, you’d know there is a cap or limit as to how much you can claim. What you might not know is that the cap relates to the employer – not the employee. That means if you are salary packaging two jobs, you could get double the benefit!
Maximise your benefits at both employers
Because any cap on salary packaging relates to your employer, if you work for 2 places with the same FBT status you can effectively double your salary packaging cap. For example, if your annual cap is $15,900, you can claim the same amount at both, increasing your salary packaging cap to a total of $31,800. Imagine the difference this can make to the amount you save on tax when claiming reportable fringe benefits (RFB) and meals and entertainment (if applicable). The only thing is that you can’t claim the same benefit with each employer, therefore if you claim mortgage repayments from one employer you will need a different benefit for the other. The same regulations apply across employers, so largely how you choose to maximise your savings is up to you, but just make sure you claim every possible dollar.
It may seem complicated to use salary packaging at two employers, but as long as you have a reliable salary packaging provider, they can easily set it all up for you. Your salary packaging allowance (times two) runs for the FBT year, from 1 April to 31 March, so make sure you claim all your entitlements through each employer before the end of each FBT year.
What if you have two jobs, but only one offers salary packaging?
Obviously, you can only benefit from salary packaging at the employer who offers it, but a suggestion is to look at claiming your tax-free threshold at your non-salary packaging provider. This should reduce your overall taxable income as much as possible. If in doubt, always check with your accountant on what you can claim on tax at the end of every financial year. Also, remember that you can’t claim any expense via salary packaging if you are claiming the same expense at tax time, for example, an investment property.
What can you use salary packaging for?
Salary packaging allows you to access your pre-tax salary to save money on a range of essential and lifestyle expenses. It also helps you reduce your taxable income. You could use salary packaging for car-running costs, work-related devices, meals, entertainment, holiday accommodation, memberships, subscriptions, bills, mortgages, rent, loans, childcare, rates, insurance, aged care, self-education and credit cards. If you’re not sure where best to use your salary packaging allowance, talk to your salary packaging provider, financial advisor or trusted accountant.
If you haven’t used salary packaging before, it’s actually pretty straightforward. After the money is received from your employer, you’ll be reimbursed for the expense you have paid, or you can opt to have funds paid directly to your chosen expense.
You might prefer the convenience of a salary packaging card pre-loaded with funds. This means you have a card, with the same functionality as your existing bank card except for cash withdrawals, that you can use for living expenses such as bills and groceries. It also negates the need to keep receipts and invoices to claim at a later date.
Is there anything you cannot claim from both employers?
While you’ll benefit big time from doubling your salary packaging allowance, there are some limits on what you can claim.
If you are claiming from two different employers:
● You can’t claim the same payment from two different employers e.g. mortgage, credit card or childcare repayment.
● If your partner also receives salary packaging benefits, you can’t both claim the same expense or payment as they are. For example, only one of you could claim the mortgage repayment on your joint home loan.
● You can’t claim Remote Area Housing (RAH) at both employers
● You can’t claim the same meals expenses via reimbursement at both employers (so only one set of receipts can be submitted per employer, not for both)
Get specialist help with The Salary Packaging People
The Salary Packaging People are Geelong and Western Victoria’s local salary packaging specialists working with a range of companies and employers right across the region. Speak to one of our team members directly by calling 03 5229 2400 or email info@salarypackagingpeople.com.au.