Salary packaging made easy
- Use salary packaging cards to pay for expenses
- Lower your taxable income
- One card pays for groceries, household bills, fuel, retail shopping and work-related purchases
- A second card pays for meals and entertainment
Working in healthcare can be physically and emotionally taxing. Busy days don’t leave much time to deal with tax of the financial kind. Yet, as a nurse in Australia, there’s a simple way to significantly reduce the amount of income tax you pay and keep more of your salary for yourself.
What is salary packaging?
Salary packaging allows healthcare workers to take advantage of an ATO allowance for your expenses. These expenses are deducted from your salary before tax, making your taxable income lower. You only pay tax on the lower income, not on the total salary. Overall, it means you have more money in your pocket every month.
The cards do the work
You can spend up to $9010 on eligible everyday expenses such as groceries, household bills, fuel, retail shopping and work-related purchases, such as a laptop or clothing. You can even include mortgage repayments, rent, school fees and some insurance premiums. Additionally, you can spend up to $2650 on meals and entertainment.
Big savings for nurses
Salary packaging can enable you to pay less tax, which means more disposable income in your hands. So it’s definitely worth taking the time to consider and register for salary packaging!
Unpacking the myths
Salary packaging seems complicated, but it doesn’t have to be. Even if you have more than one employer, you simply set up salary packaging with each one. It’s not difficult to reach your allowance limits once you’re in the habit of using your cards. There are some salary packaging options that are more detailed, such as novated leases for cars and HECS repayments. Speak to your employee benefits team to learn more.
Pay off a home faster
Paying off a mortgage pre-tax with salary packaging is a great strategy for nurses looking to get on the property ladder. With BankVic, salary packaging does not impact your borrowing capacity. While some lenders will assess your salary packaging as an expense, BankVic has long experience helping healthcare workers with home loans. That's why our lenders will consider your entire income (including overtime payments) when deciding how much you can borrow. Nurses use salary packaging to pay off your home sooner.
If you would like help to make the most of your salary packaging savings, talk to BankVic. We can help you set up your banking and home loans to achieve your financial goals.
BankVic is proud to serve Victorians working in health, emergency services and policing.