Here’s an example of how it works for Jenny – a nurse who earns $21 an hour and works 36 hours a week. Her fortnightly pay is $1,512 which means that each year she earns $39,312.
Before she started salary packaging, $197 was deducted from her pay each fortnight for tax and medicare. She uses this pay to cover here living expenses.
|
Without Salary Packaging |
With Salary Packaging |
|
| Jenny’s fortnightly pay |
1,512 |
1,512 |
| Salary packaging to an Everyday Purchases card per fortnight |
550 |
|
|
Jenny’s taxable salary |
1,512 |
962 |
| Tax and Medicare |
197 |
65 |
| Salary after tax |
1,315 |
897 |
| Money added to Everyday Purchases card |
550 |
|
| Total money available |
765 |
897 |
| Extra money with salary packaging per year |
|
3,432 |
With salary packaging, Jenny decides to package $550 a fortnight. Her pay is reduced to $9,762.
her mortgage repayment is still made, the only difference is that it’s now paid from her pre-tax salary. And the payment is made by Salary Solutions.
That’s an extra $3,432 a year in Jenny’s pocket! Even with the fees Jenny pays for salary packaging, she will still have well over $3,000 more to spend each year from her salary packaging account.