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