It is an innate human penchant to enjoy life in maximum possible ways, by using all available resources; this basic human tendency is creatively nourished by many of the modern companies, by diverse ways. Salary packaging option is one of such ways, by which companies help their employees to procure various pricey items, without severely harming the pockets of the employees. This is one of the best bets for all eligible employees to obtain costly items such as various vehicles, electronic items including laptops, notebooks, iPads and tablets. Numerous other kinds of services such as income protection insurance, education, parking or fuel can be also taken care of, by using this scheme.
This method is also termed as salary sacrifice or exchange of salary. Here, the various fringe benefits are included into the salary of the concerned employee, and the employee agrees to set aside a certain portion of it, for depositing in this distinctive financial plan. When both the employer and the employee agree to this plan, then a basic deed is signed to this effect, between them. The items that can be procured through this scheme include company vehicles by the method of novated lease, various types of computers including laptops and diverse types of mobile phones, including the latest types of smartphones.
Salary packaging is in fact can be termed as a special type of fringe benefit, which all monthly salaried employees of all companies, who meets the set criteria or the basic requirements for claiming the ‘fringe benefit tax’ exclusion, can enjoy. It must be noted that ‘Australian Taxation Office’ has accepted the guidelines of this special financial scheme. In recent times, online salary packaging calculators are available, and this is indeed the best way, to comprehend the various available opportunities.
In accordance with the signed contract, the employer will take the amount, which the employee has formally agreed, from the pre-tax salary and put the same into the salary packaging scheme, during each monthly salary time, and the mandatory tax will be deducted, only from the remaining portion the salary. The balance salary will be straightaway credited, in the relevant bank account of the employee. These days, there are very many financial companies that take care of this scheme and almost all of such professional firms charge only a nominal amount, as the administration costs.
In general, salary packaging is the best way to amplify your overall earnings in a smarter way; by this way, the disposable income of employees can be enhanced to a great extent; when one fails to get enrolled in this particular scheme, he or she is forgoing the chance of augmenting their expendable earnings. Without a shred of doubt it can be said that, when an employee register in this scheme, it will be highly beneficial to him or her. One of the most significant parts of this financial arrangement is that, the employee will be able to purchase diverse goods, services or can effect certain payments like rent or mortgage, by utilizing his or her tax-free salary, and because of this facility, the take home salary package will be enhanced. Some of the professionally managed finance establishments also market special salary packaging car schemes, which are exclusively meant for buying cars.
This method is also termed as salary sacrifice or exchange of salary. Here, the various fringe benefits are included into the salary of the concerned employee, and the employee agrees to set aside a certain portion of it, for depositing in this distinctive financial plan. When both the employer and the employee agree to this plan, then a basic deed is signed to this effect, between them. The items that can be procured through this scheme include company vehicles by the method of novated lease, various types of computers including laptops and diverse types of mobile phones, including the latest types of smartphones.
Salary packaging is in fact can be termed as a special type of fringe benefit, which all monthly salaried employees of all companies, who meets the set criteria or the basic requirements for claiming the ‘fringe benefit tax’ exclusion, can enjoy. It must be noted that ‘Australian Taxation Office’ has accepted the guidelines of this special financial scheme. In recent times, online salary packaging calculators are available, and this is indeed the best way, to comprehend the various available opportunities.
In accordance with the signed contract, the employer will take the amount, which the employee has formally agreed, from the pre-tax salary and put the same into the salary packaging scheme, during each monthly salary time, and the mandatory tax will be deducted, only from the remaining portion the salary. The balance salary will be straightaway credited, in the relevant bank account of the employee. These days, there are very many financial companies that take care of this scheme and almost all of such professional firms charge only a nominal amount, as the administration costs.
In general, salary packaging is the best way to amplify your overall earnings in a smarter way; by this way, the disposable income of employees can be enhanced to a great extent; when one fails to get enrolled in this particular scheme, he or she is forgoing the chance of augmenting their expendable earnings. Without a shred of doubt it can be said that, when an employee register in this scheme, it will be highly beneficial to him or her. One of the most significant parts of this financial arrangement is that, the employee will be able to purchase diverse goods, services or can effect certain payments like rent or mortgage, by utilizing his or her tax-free salary, and because of this facility, the take home salary package will be enhanced. Some of the professionally managed finance establishments also market special salary packaging car schemes, which are exclusively meant for buying cars.