Tax time: Many Aussie workers overlooking a simple way to save on their tax bill
NALSPA
As Australians look to get the most from their 2024-25 tax returns amid cost-of-living pressures, NALSPA said many workers may be missing out on salary packaging to potentially reduce their tax bill by thousands of dollars every year.
National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin said it was a good time for Australians to think about taking advantage of salary packaging to help them keep more of their hard-earned money.
“With tax time just around the corner, many workers are getting ready to sort their deductions and maximise their tax returns but there’s one strategy that plenty of Australians are missing out on entirely: salary packaging," Mr Martin said.
“Many Australian workers don’t realise they could potentially be significantly better off each year by reducing their taxable income through salary packaging, a modern remuneration award mechanism also known as salary sacrificing.
“Salary packaging lets you use pre-tax dollars for selected expenses, reducing your taxable income so you pay less tax and keep more of your hard-earned money.
“There are a number of things you may be able to salary package depending on your profession and employer, including superannuation, rent and mortgage payments, childcare and school fees, laptops, a car, meals eaten out and health insurance.
“Finding ways to save and put more money in your pocket is always a win but it matters even more as cost-of-living pressures continue to affect Australian households.
“We recommend workers use this tax time to assess their financial goals and taxation position, speak with their employer or a salary packaging provider to understand what might be possible for them, and seek professional advice such as from an accountant or tax agent.”
Example case studies:
1. Health worker
- Salary: $60,000 per year before tax
- Salary packaged items: $9,010 on living expenses such as mortgage repayments, utility bills and groceries
- How much extra they could take home: $2,796 per year
2. Charity worker
- Salary: $60,000 per year before tax
- Salary packaged items: $15,900 on living expenses such as rent, health insurance and groceries
- How much extra they could take home: $4,857 per year
3. Corporate worker
- Salary: $95,000 per year before tax
- Salary packaged items: $10,000 on additional superannuation and a laptop
- How much extra they could take home: $3,509 per year
Contact details:
Sofie Wainwright: 0403 920 301