FAQs

Q: What is Salary Packaging?

A: Salary Packaging is an ATO approved method of restructuring your salary by reducing the tax you pay and increasing your net take home pay.

Q: How does Salary Packaging affect my pay?

A: Salary Packaging means your wage arrives in two parts, the first is your ‘sacrificed’ amount and the second is your usual wage paid by your employer.

Q: Is there a maximum amount I can package per FBT Year?

A: The ATO caps the amount of money an employee can package in standard benefits depending in which sector they operate. Annually, these caps are $9,010 net ($17,000 grossed-up) for Public Hospital employees and $15,900 net ($30,000 grossed-up) for Charity & PBI employees.

Q: How do I keep my salary packaging program compliant?

A: The Eziway Administration System does the hard work in keeping your program compliant. All you need to do is provide substantiation and supporting documentation to Eziway.

Q: What is substantiation?

A: Substantiation is evidence of an expense. The ATO requires proof of spend for all salary packaging benefits and stipulates what documentation is acceptable for each benefit type.

Q: What if I’ve got a HELP debt?

A: The ATO includes your Reportable Fringe Benefit Amount (RFBA) when calculating your HELP Repayment Income. Your RFBA is recorded on your pay summary at tax time to show how much you salary packaged for the period. By salary packaging, you may be elevated to a higher repayment threshold and be required to repay more. In nearly all cases the savings achieved through salary packaging far outweigh any increase in HELP repayments you may be required to pay owing to salary packaging.

Q: How does a Salary Packaging Card work?

A: Eziway’s all-in-one Salary Packaging Card gives employees access to their pre-tax funds at the point of sale when paying for two popular benefits—Living Expenses and Entertainment Benefits. When you make a transaction, the vendor’s merchant code directs the charge to the appropriate account.

Q: How do I order a Salary Packaging Card?

A: Order a new card online in seconds. Login to the Eziway website (eziway.net.au) using your username and password. From the Account Dashboard choose ‘My Card Information’ > ‘Eziway Card Services’ > ‘eziway SalPac Card Application’.

Q: What does the card cost?

A: There is a once off card issue fee of $8.80 and a fortnightly fee of $1.94 thereafter.

Q: What are Entertainment Benefits?

A: Entertainment Benefits consists of Meal Entertainment and Venue Hire expenses that can be packaged above your standard cap and up to a maximum of $2,649 per FBT year (1 Apr–31 Mar).