Your car might only be the start.
If you work for a corporate employer, there may be more salary packaging benefits available to you than you realise.
A novated lease is one of the best-known ways to salary package, but it is not the only option. Depending on your employer and eligibility, you may also be able to package certain work-related expenses and other benefits using your pre-tax salary.
How does salary packaging work?
Think about some of the expenses that already come with working life. You might need a new laptop, pay for a professional membership, travel for work or relocate for a new role.
Salary packaging is an arrangement with your employer that allows eligible benefits to be provided from your salary before income tax is deducted. The tax treatment depends on the type of benefit and the rules that apply.
The Australian Taxation Office (ATO) explains that benefits provided through salary sacrifice arrangements can generally include fringe benefits, exempt benefits and employer super contributions.
Not every expense can simply be salary packaged tax-free. Eligibility and Fringe Benefits Tax (FBT) treatment can vary, which is why it is worth checking what is available through your employer before making a purchase.
What salary packaging benefits can corporate employees access?
The exact benefits available depend on your employer's salary packaging program and whether you meet the relevant eligibility requirements. For eligible corporate employees, options can extend well beyond a car.
Mobile phones, laptops and tablets
Technology is a major part of modern working life. Eligible employees may be able to salary package the purchase of a mobile phone, laptop, tablet or iPad when the relevant work-use requirements are met.
The ATO recognises certain portable electronic devices that are primarily used for work as FBT-exempt work-related items. Restrictions can apply to items with substantially identical functions within the same FBT year.
If your device is due for an upgrade, it may be worth checking your eligibility before purchasing it yourself.
Professional subscriptions, memberships and self-education
Professional development can come with regular costs. Eligible professional subscriptions, memberships and certain self-education or other work-related expenses may be able to be salary packaged.
This can be relevant for employees who pay membership fees to maintain professional accreditation, access industry resources or undertake eligible education connected with their work.
The expense still needs to meet the applicable requirements, so check your eligibility before assuming a course, membership or subscription can be packaged.
Working from home expenses
For many corporate employees, the home office is now part of the working week.
Depending on the expense and your circumstances, eligible work-from-home expenses may be available through your employer's corporate salary packaging program.
Personal household spending does not automatically become eligible because you work from home, so it is important to check which expenses qualify.
An e-Bike
Your next set of wheels might have two wheels instead of four.
Eligible employees may be able to salary package an e-Bike using pre-tax salary. For someone looking for another way to commute, particularly over shorter distances, an e-Bike can be worth investigating alongside more traditional travel options.
Work-related travel, parking and airport lounge membership
Travelling for your job can create expenses beyond your normal commute.
Eligible work-related travel may be available to salary package. Other benefits can include car parking provided on your employer's premises and, for eligible employees, airport lounge membership.
There are also location-specific benefits. For example, Remunerator's corporate benefits include bus travel from home to work on Translink bus services in South East Queensland using a Go Bus Travel Benefit Card.
Relocation expenses
Moving for work can get expensive quickly.
Eligible relocation expenses may include removal and storage of household effects, certain expenses relating to the sale or acquisition of a home, engaging a relocation consultant and transport associated with the relocation.
Relocation benefits are subject to specific requirements, so confirm what is eligible before making arrangements.
Income protection insurance
If you already pay income protection insurance premiums, this may be another benefit worth checking.
Eligible employees may be able to salary packaging income protection insurance premiums using pre-tax salary. Whether this benefit is available will depend on your employer's program and your eligibility.
You may wish to seek independent advice about whether a particular insurance product or arrangement is appropriate for you.
What if I live or work in a remote area?
Some corporate employees may have access to additional salary packaging benefits because of where they live or work.
Depending on the relevant conditions, Remunerator's corporate benefits include options for eligible fly-in fly-out employees and the remote-area expenses such as holiday transport, residential electricity and gas, mortgage interest and rent.
Remote-area benefits have specific eligibility criteria, so they will not apply to every corporate employee.
Why aren't all salary packaging benefits the same?
This is where salary packaging can become confusing.
Two people in similar corporate roles may not have access to exactly the same benefits. Your options can depend on your employer, the type of expense, how an item is used and the relevant tax and FBT rules.
The ATO lists certain work-related items, including eligible portable electronic devices, computer software, protective clothing and tools of trade, as potentially exempt from FBT when the relevant requirements are met.
That is why the better question is not simply, "Can I salary package this?" It is, "Is this benefit available through my employer and am I eligible?"
Before paying for your next work expense, check your options
A new laptop. Your professional membership. Work travel. An e-Bike. Even certain relocation expenses.
There could be more sitting inside your salary packaging program than you think.
If your employer offers salary packaging through Remunerator, explore our corporate salary packaging benefits to see the benefits that may be available to you and the eligibility requirements that apply.
Still not sure what you can package? Get in touch with us and our team can help you understand the benefits available through your employer.