Remote Area Benefits
If you live and work in a remote area, you may be eligible to salary package your residential fuel expenses, including electricity and gas bills. By incorporating these costs into your salary packaging arrangement, you can reduce your taxable income and potentially increase your take-home pay.
This benefit is available to employees whose employers offer salary packaging and who work in remote locations as defined by the Australian Taxation Office (ATO).
Residential fuel salary packaging allows eligible employees to use their pre-tax salary to pay for electricity and gas expenses associated with their primary place of residence in a remote area. This arrangement can lead to significant tax savings by reducing your taxable income.
Get started saving on your residential fuel by using our salary packaging calculator!
When you salary package your residential fuel expenses, you specify an amount per annum for Remunerator to deduct each pay.
When you pay for an electricity or gas bill, simply submit a reimbursement claim form online or via the Remunerator web app, with tax invoices attached. Remunerator will then credit the money into your nominated bank account.
By salary packaging your residential fuel expenses, you can reduce your taxable income, potentially lowering your tax liability. Additionally, you may not have to pay Goods and Services Tax (GST) on this benefit. Where GST is payable for the service, your employer may be able to claim an Input Tax Credit (ITC), which may then be passed back to you, the employee.
However, it's important to consider that the provision of residential fuel to the employee is a residual benefit and may be subject to Fringe Benefits Tax (FBT) unless exempted under specific circumstances as outlined by the ATO.
