Make the most of your benefits: Presentation for: Queensland Government employees

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Catherine McCormick
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1 Make the most of your benefits: Presentation for: Queensland Government employees

2 What We Will Cover How Salary Packaging Can Save You Tax! Salary Packaging Guidelines Salary Packaging Benefits Novated Leasing Getting Started! (V1) 1

3 Please Note The information provided in this session is factual information only and has been prepared without consideration of your personal circumstances. Financial advice is not mandatory when commencing salary packaging, however and Qld Government strongly recommend seeking your own independent advice. 2

4 Who Is? Your salary packaging provider Qld s largest salary packaging provider Part of Australia s largest salary packaging group Headquartered in Brisbane locals servicing locals Offering award winning customer service to over 110,000 customers 3

5 Saving Tax CURRENT SITUATION WITH SALARY PACKAGING 4

6 Salary Packaging Guidelines You can salary package up to 100% of your salary towards Super* You can salary package up to 50% of your salary towards items other than Super Casual employees who have been employed for under 12 months are ineligible to Salary Package 5

your salary towards items other than Super Casual employees who

7 What Can You Salary Package FBT Year- 1 st April to 31 st March NO FBT PAYABLE Superannuation YOUR PACKAGE Professional Memberships & Subscriptions Airport Lounge Memberships Union Fees Disability/Income Protection Insurance Self Education Work Related Travel Laptop / Mobile Phone / I Pad 50%+ work related CONCESSIONAL ITEMS Novated Lease 10%/GST Off Purchase Price Fuel, Maintenance Pay finance & operating costs from pre-tax salary (Flat FBT Rate of 20% irrespective of annual kms)

Work Related Travel Laptop / Mobile Phone / I Pad 50%+ work related CONCESSIONAL ITEMS Novated Lease 10%/GST Off Purchase

8 Your Super & Salary Packaging When you salary package your super contributions are paid from your gross income as opposed to your net salary What s your taxable income & HOW MUCH COULD YOU SAVE? Taxable Income Marginal Tax Rates* Super Contributions Tax Rate $37,001 $80,000 30% 15% $80,001 - $180,000 37% 15% $180, % 15% *Above lower threshold. Plus 1.5% Medicare levy 7

9 Super Example ITEM CURRENT PACKAGING ANNUAL SALARY $50,000 FORTNIGHTLY SALARY $1,923 Standard Contribution (5.88%) $0 $50,000 $1,923 -$113 Fringe Benefits Tax (FBT) Administration Fee Nil Nil $0 -$1.35 TAXABLE SALARY $1,923 $1,809 Tax & Medicare Levy -$358 -$322 POST TAX SALARY $1,565 $1,487 Standard Contribution (5%) -$96 $0 NET CASH SALARY $1,469 $1,487 FORTNIGHTLY BENEFIT $0 $18 ANNUAL BENEFIT $0 8 $468

88%) $0 $50,000 $1,923 -$113 Fringe Benefits Tax (FBT) Administration Fee Nil Nil $0 -$1.

10 QG In-house Benefit - Electricity Under the Queensland Government In-house benefit you can salary package your electricity bills up to $1, per FBT year. 1. Your bill can be addressed to you, a spouse or relative 2. Excludes some charges such as service fees and loans 3. Queensland locations only 9

11 Electricity Example ITEM CURRENT ANNUAL SALARY $50,000 FORTNIGHTLY SALARY $1,923 Electricity bills $0 Additional Superannuation (packaged pre-tax) Fringe Benefits Tax (FBT) Administration Fee $0 Nil Nil TAXABLE SALARY $1,923 Input Tax Credits $0 Taxable Salary after ITCs $1,923 Tax and Medicare -$358 POST TAX SALARY $1,565 Electricity bills -$51 Additional Superannuation (paid post-tax) -$96 NET CASH SALARY $1,418 FORTNIGHTLY BENEFIT $0 ANNUAL BENEFIT $0 PACKAGING $50,000 $1,923 -$51 -$113 $0 -$3.46 $1,755 $5 $1,760 -$306 $1,454 $0 $0 $1,454 $36 10 $936

$1,923 Tax and Medicare -$358 POST TAX SALARY $1,565 Electricity bills -$51 Additional Superannuation (paid post-tax) -$96 NET CASH SALARY

12 How Does It Work? Step 1 Employee sets fortnightly deductions to be made into their trust account Step 2 Employer sends fortnightly deductions to Employees trust account Step 4 reimburses employee from available funds in their trust account Step 3 Employee receives bills, pays these as usual and sends proof of payment to 11

Step 2 Employer sends fortnightly deductions to Employees trust account Step 4

13 12

14 Novated Lease Benefit Fuel Purchase Price of a new car Maintenance Registration 100% Personal use of the car No Obligation Quote New, 2 nd hand car or your current car Financiers from a selected panel Fully Maintained or Self Managed 13

Obligation Quote New, 2 nd hand car or your current car

15 The Benefits Kilometres Travelled* Statutory % FBT Purposes Less than 14,999 20% 15,000 24,999 20% 25,000 40,000 14% Over 40,000 10% *Based on total annual kilometres: private and business use! 14

16 Budgeting For Your Car Let s work out the budget for a car worth $30,000, leased over a 3 year term, where you are driving 20,000kms a year! ITEM ANNUAL EXPENSE FORTNIGHTLY EXPENSE Lease Repayments $8,000 $307 $728 Fuel Costs (10 litres/per 100kms) $3,400 $131 $309 Maintenance $1,000 $38 $91 Registration $600 $23 $0 Insurance $600 $23 $0 INPUT TAX CREDITS TOTAL $13,600 $522 $1,128 15

ITEM ANNUAL EXPENSE FORTNIGHTLY EXPENSE Lease Repayments $8,000 $307 $728 Fuel Costs (10

17 Novated Lease Example ITEM CURRENT PACKAGING ANNUAL SALARY $50,000 $50,000 FORTNIGHTLY SALARY $1,923 $1,923 Lease & Operating Costs (packaged pre-tax) $0 -$292 Fringe Benefits Tax (FBT) Nil $0 GST on Employee Contribution Method Nil -$21 Administration Fee $0 $7.96 TAXABLE SALARY $1,923 $1,602 Input Tax Credits (ITC) Nil Fortnightly Salary after ITC $1,923 Tax & Medicare Levy -$358 POST TAX SALARY $1,565 Lease & Operating Costs (paid post-tax) -$522 $43 $1,645 -$270 $1,375 $0 Employee Contribution $0 -$230 NET CASH SALARY $1,043 $1,145 FORTNIGHTLY BENEFIT $0 ANNUAL BENEFIT $0 16 $102 $2,652

96 TAXABLE SALARY $1,923 $1,602 Input Tax Credits (ITC) Nil Fortnightly Salary after ITC $1,923 Tax & Medicare Levy -$358 POST TAX SALARY $1,565

18 An Expert In Your Corner I would like to express my thanks for the professional, timely and courteous service I received from my Fleet consultant. Since our first contact he has been very accessible and his response time to all my queries was nothing short of phenomenal. (Queensland Government employee) One-stop-shop for all your car needs including finance, insurance and accessories No need to visit a car yard No more wasted Saturdays On-going after sales care If we can help we will! 17 *Conditions apply

Since our first contact he has been very accessible and his response time to all my queries was nothing short of phenomenal.

19 Your Total Package YOUR PACKAGE Superannuation Electricity bills Novated Lease ANNUAL BENEFIT TOTAL $3,925 18

Getting Started Complete an application form today and hand to your presenter CALL: 1300 73 66 62 Complete

20 Getting Started Complete an application form today and hand to your presenter CALL: Complete an application form MAIL: GPO BOX 424, Brisbane Qld, FAX:

Salary Packaging Information Kit

Salary Packaging Information Kit Salary Packaging Information This booklet provides information about salary packaging for employees of Public Benevolent Institutions (PBI) and other charitable organisations. Salary packaging (also known