You can claim up to $9,010 per FBT year and, by packaging these costs under your employer’s tax-free cap entitlement, you can significantly reduce your annual tax bill.

  • The maximum we can deduct each pay under this benefit is $9,010 divided by the number of pays remaining in the FBT year.
  • Benefits that are salary packaged under your employer’s tax-free cap entitlement give rise to a reportable fringe benefit amount (see below).
  • You must not salary package costs that have been claimed previously, regardless of whether these were claimed under a different employer.
  • You can even package a combination of benefit items, as long as you don’t exceed the $9,010 cap per FBT year.

 

Here’s a breakdown of the items you could package:

 

Mortgage or loan repayments (such as a personal loan)

  • You will need to provide evidence of your ongoing repayment obligation, you will not need to submit any further claims during the life of your mortgage/loan.  
  • You must provide substantiation, as per the ‘Benefit Substantiation’ tabled below.

 

Rent

  • You will need to provide evidence of your ongoing rental amount. 
  • If we have set up salary packaging reimbursements based on your rental amount and that amount increases/decrease at a future time or you change rental properties you must inform us so we can adjust your package.  If you do not advise us you could incur FBT or other tax charges.
  • You must provide substantiation, as outlined below in ‘Benefit Substantiation’.

 

Credit card repayments

  • We will set up salary packaging reimbursements for the total $9010 cap limit.
  • If you submit statements that do not cover your full annual cap entitlement you will need to submit further claims to ensure your annual benefits are paid prior to 31 March annually.
  • If you submit credit card claims that exceed your remaining annual cap entitlement we will rollover the excess claims towards next year’s cap.

 

Eastern Health Salary Packaging Card

If you aren’t packaging an ongoing expense like mortgage or rent, the easiest way to salary package your living expenses is by using the ATO-approved Eastern Health Salary Packaging VISA debit Card. Use it to pay for groceries, bills, clothing, and just about anything else where visa is accepted.

 

Other Benefit Claims

You can send in a claim form and proof of payment for the following items:

  • Private health insurance
  • HECS/HELP repayments
  • School fees / Child Care

Benefit Substantiation

Repayments for an employee’s mortgage, personal or car loan are an on-going item with a regular frequency and repayment amount. 

 

Mortgage or loan claims
  • a copy of loan documentation (in your or your spouse’s name) showing your minimum monthly repayment obligation;

           or

  • a loan account statement (in your or your spouse’s name) showing actual loan repayment expenditure you have already incurred.
Rent claims
  • a copy of your rental agreement showing your periodic rent obligations; 
Credit card claims
  • a credit card statement (or similar) showing repayment amounts debited against your account;

          or

  • a bank account statement (or similar) showing payment of amounts to a credit card account.
Other Claims
  • copies of tax invoices or receipts providing evidence of the expenditure.

Reportable fringe benefits amounts

Packaging towards the tax-free 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.

 

Fees

For more information on fee, refer to Eastern Health’s Salary Packaging Employee Information Guide or contact us on 1300 361 669.

 

 

 

Salary Packaging Application Form

Other Benefits Claim Form

HELP Debt Information Sheet