Did you know that if you work from home, you may be able to salary package some of your work-from-home expenses?
By salary packaging, you can pay for these expenses with your pre-tax salary, effectively reducing your taxable income and saving money.
What is Salary Packaging?
Salary packaging allows you to use your pre-tax salary to pay for specific expenses.
When it comes to working from home, you can include some of these expenses in your salary package, provided they are primarily for use in your employment and align with your employer’s salary packaging policy.
Not only does this reduce your taxable income, but in some cases, you may also avoid paying GST on these benefits, maximizing your savings even further.
Learn More About Salary Packaging
To take advantage of salary packaging for your work-from-home expenses, you need to meet the following criteria:
- Work from Home: You must be working from home.
- Employment Related: The expenses must be directly related to your current employment.
- Employer’s Policy: The expenses must be allowable under your employer’s salary packaging policy.
It’s important to discuss with your employer to confirm your company’s policy on salary packaging these expenses.
What Can You Salary Package?
A wide range of work-from-home expenses can be included in your salary package, such as:
- Computer and Related Electronics: Printers, monitors, and other essential tech.
- Running Expenses: Consumables like printer ink, paper, and stationery.
- Internet: Your internet connection costs.
- Furniture: Desks, chairs, filing cabinets, and other office furniture.
- Cleaning Costs: Keep your home office clean and professional.
- Utilities: Heating, cooling, and lighting costs.
- Headphones: AirPods or other headphones for work purposes.
These benefits are paid via the reimbursement method, so you will need to provide receipts or invoices for the eligible work-from-home expenses when claiming your reimbursement.
How to Maximize Your Savings:
If your employer’s policy allows, you might also be able to package other work-related expenses, including:
- Business Software: Tools essential for your job.
- Financial Consulting: Services related to managing your finances.
- Investment Loans – Interest Repayments: Salary packaging your investment loan interest.
- PDAs: Personal Digital Assistants used for work.
- Professional Indemnity Insurance: Protect yourself with the right coverage.
- Self-Education: Courses and training directly related to your job.
- Work-Related Car Parking: Parking costs incurred while performing your job.
These expenses are also reimbursed after you submit a claim with the appropriate documentation.
Additionally, if GST is payable on any of these services, your employer can claim an Input Tax Credit (ITC), which might be passed back to you, further increasing your savings.
Are you ready to save?
Why pay more than you have to? By salary packaging your work-from-home and other work-related expenses, you can take control of your finances and maximize your savings.
Contact a Remunerator Salary Packaging Consultant today to discuss the specific expenses you can claim and start saving now!