Salary package the cost of your holiday expenses up to the capped limit of $2,650 . It can be anything from an overnight stay to accommodation expenses on your dream overseas holiday that you can salary package pre-tax.
You may use Eastern Health's Meal Leisure card to pay for your accommodation expenses direct with the provider or book and pay expenses through a travel agent. For more information please check our policy guide.
It’s another great way for you to make the most of your salary packaging because it’s over and above your $9,009 limit.
How much can I save?
Every time you dine out, you are using money allocated from your pay that has not been taxed.
As a guide, if you are earning over $18,000 and under $37,000 a year you have the potential to save 19% on your accommodation expense and 32.5% if you earn over $37,000 a year.
Tom earns $45,000p.a and spends $2,650 on 5 nights holiday package on the Gold Coast, by salary packaging his accommodation expense, Tom has achieved $816 in Tax Savings! Now that holiday has only cost $1734!
What can I claim?
- Dining out expenses (eg. Restaurants, Bistros, Cafes, Pubs, Clubs) in excess of $15
- Catering costs of a party, where a catering service has been hired
- Accommodation expense (within Australia or Overseas).
- An all-inclusive holiday package (including flights, accommodation, tours and meals)
- Hiring a marquee, function room or reception centre for a family function (wedding, engagement, birthday celebration).
- Hiring cost of a mobile home, campervan or Winnebago, where site fees are included in the cost of hiring a mobile home.
- Accommodation on a ship or Train, vessel (such as a cruise, or sleeper cabin on a train).
- Hire of a yacht, plane or other vessel (in its entirety)
How does it work?
Collect your tax receipt, paid by cash or personal card and claim by manual reimbursement. When you make a claim we will deduct and reimburse you from your pay, pre-tax! A convenient way to salary package, if you are unsure on how much you will spend or that last minute getaway.
Or, let us know how much you would like to regularly set aside from your pre-tax salary every pay period and submit your claim through the year.
Another easy way to save for your holiday expenses is choose to have the funds deposited to your Meal Leisure Card.
Reportable fringe benefits amounts
Packaging towards the tax-free Entertainment cap will result in a Reportable Fringe Benefit Amount (RFBA) on your annual PAYG summary.
RFBAs do not affect your income tax liability but the ATO will take them into account when determining certain other obligations and entitlements. For more information in this regard please visit the ATO website.
RFBAs and your HECS/HELP Loan
Your HECS/HELP repayments are based upon your ‘HELP Repayment Income’, which includes any Reportable Fringe Benefit Amount.
How will my RFBA affect my HECS/HELP repayments?
Eastern Health Payroll department does not take RFBAs into account when calculating your periodic HECS/HELP deductions throughout the income tax year. This means that if you lodge an annual tax return containing an RFBA you could be faced with an additional lump-sum HECS/HELP payment requirement when you receive your ATO notice of assessment for the relevant year.
To avoid this, you can ask Eastern Health Payroll department to withhold additional HELP contributions.