If you’re one of our country’s not-for-profit superheroes, then salary packaging is the life hack you deserve. It’s an amazing service full of clever little ways to help you save, eat out for less and even drive the car you’ve always wanted to. Sounds good? Well this article has absolutely everything you need to know about salary packaging, from the benefits to the application process and all the helpful tips and tricks in between. So, what are we waiting for?
Ok, what is it and how does it work?
Salary packaging lets people like you designate a portion of their pre-tax earnings towards different expenses, like mortgage payments, car payments, utilities, and even extra super contributions. While typically linked with corporate environments, salary packaging is open to not-for-profit employees, allowing you to boost your take-home pay and enjoy a world of additional perks, which you’ll learn about in a second. Salary packaging is facilitated through a service provider that your employer has a prearranged agreement with. There are a few other details, but all of them will be covered in your application process. So, how about we move on to the exciting stuff?
Salary packaging not-for-profit benefits
More take-home pay
Salary packaging not-for-profit members have the power to shave off their taxable income, meaning more cash in hand every payday. By setting aside some of your pre-tax earnings for eligible expenses, you can slash your tax bill and boost your available spending money.
Tax perks
One of the best things about salary packaging is the tax savings. By putting pre-tax dollars towards stuff like mortgage payments or extra super contributions, you can lower your monthly tax amount so you keep more money in your pocket.
Flexible benefits
Not-for-profit organisations usually offer a ton of different salary packaging options, so employees like you can pick and choose what works best. Whether it’s putting money towards your mortgage, car expenses, or courses, salary packaging lets you customise your benefits, your way.
Extra perks
And if that’s not enough, you could be eligible for some bonus benefits too. Think discounted health insurance, gym memberships, and financial planning services. Your salary packaging service provider will be able to clue you in on everything available to you.
But wait, there’s more
Meal and Entertainment benefits
The benefits don’t stop there! Salary packaging not-for-profit members also get their very own Meal and Entertainment Card. Basically, you get to eat out at fancy restaurants or the cafe on the corner and save money. Yes, you read that right. The meal and entertainment benefit works under the Fringe Benefits Tax legislation, and qualifying employees can stash away up to $2,650 of their pre-tax income for eating out and entertainment. Your card covers everything from food and drinks at participating restaurants, to holiday accommodation and venue hire – all using your pre-tax dollars. Plus, you can use your card to pay for your family as well, so they benefit too. Getting your card is a walk in the park. Just fill out a simple application form, and you’re all set.
Save on your dream car
If you thought that was amazing, buckle up, because there’s more. Salary packaging is also linked to novated leases. They’re smart vehicle financing arrangements that let you lease a car through your employer so that your car payments can be taken out of your pre-tax income. So, you’re basically paying off your car before any tax deductions hit your salary. And the vehicle perks don’t stop there –
Tax Savings – Since your car payments come straight out of your pre-tax earnings, you end up with a smaller tax bill each month. It’s like getting a tax break every time you make a payment, meaning you pay less tax and have more money in your pocket just for buying a car.
Petrol Perks – Another awesome perk of a novated lease is saving on petrol. Your car payments aren’t the only thing that’s tax-free – with a novated lease, you can use your pre-tax income to cover petrol costs, further bringing down your taxable income and leaving you with more cash at the end of the month. Plus, you can apply for your very own petrol card.
And that’s not all – say goodbye to surprise repair bills! Fully maintained novated lease packages come with maintenance and service budgets that cover everything from routine upkeep to unexpected car repairs. So, not only are you saving on your car payments, but you’re also saving on the maintenance of your car.
How do you apply?
The salary packaging not-for-profit process is simple. Below, we’ve broken it up into four easy steps –
- Consultation – The first thing to do is chat with your employer or salary packaging provider to explore the salary packaging options available to you. They’ll fill you in on the benefits you could be eligible for and any requirements you need to meet.
- Next, select your benefits – Once you understand your options, it’s time to pick the perks that suit you best. Whether it’s going for a novated lease, boosting your super contributions, or chipping away at your mortgage – here, you can choose what works for you.
- Then, the documentation – Once you’ve made your selections, you’ll need to dot the i’s and cross the t’s by filling out the necessary paperwork. It’s as simple as filling out a few forms and providing a few documents to make sure your application is complete.
- Finally, the benefits – Once everything’s sorted, your employer will put your chosen salary packaging arrangements into action. They’ll make the necessary deductions and contributions from your pre-tax income, and you’ll get to enjoy all the benefits. Keep an eye on your pay statements to make sure everything’s running smoothly.
What else should you know?
Eligible Expenses – Not all expenses qualify for salary packaging. So make sure you understand what can be included in your salary packaging arrangements and any limitations or restrictions there may be.
Reviews and Adjustments – Salary packaging arrangements can be reviewed and adjusted whenever you need them to be. If your financial situation changes or you want to explore different benefit options, it’s as easy as discussing the changes with your employer and updating your preferences.
Packaging with a professional
Salary packaging is like a golden ticket for not-for-profit heroes. It’s a chance to boost your take-home pay and get some extra perks to boost your financial health. From tax earnings to chipping away at your mortgage, there’s a world of options to help you get more out of your salary. So, why wait? Dive into your salary packaging options today and unlock the full potential of your earnings.
CBB The Salary Packaging People have been teaming up with not-for-profit organisations for over 30 years, helping their hardworking staff members (that’s you) get as many perks as possible. We have all the knowledge and expertise needed to make the whole process super simple for you, so get in touch with us, and we’ll make sure you get all the perks salary packaging has to offer.