In the following example the employee has decided to salary package their mortgage payments ($461.53 per fortnight).
Gross Salary = $40,000 (As you will see they are $3,796 per year better off by taking up salary packaging)
|
Without Packaging |
With Packaging |
|
Gross Salary |
40,000 |
40,000 |
|
Less Packaged Expenses |
0 |
12,000 |
|
Fringe Benefit Tax |
n/a |
0.00 |
|
New Gross Salary |
40,000 |
28,000 |
|
PAYG Tax |
8,840 |
5,044 |
|
Net Salary |
31,160 |
22,956 |
|
Less Expenses |
12,000 |
0 |
|
Cash in hand |
19,160 |
22,956 |
|
Benefit from Salary Packaging |
0 |
3,796 |
Gross Salary = $80,000 ($7,228 better off)
| |
Without
Packaging |
With Packaging |
|
Gross Salary |
80,000 |
80,000 |
|
Less Packaged Expenses |
0 |
15,450 |
|
Fringe Benefit Tax |
n/a |
0.00 |
|
New Gross Salary |
80,000 |
64,550 |
|
PAYG Tax |
24,544 |
17,316 |
|
Net Salary |
55,456 |
47,234 |
|
Less Expenses |
15,450 |
0 |
|
Cash in hand |
40,006 |
47,234 |
|
Benefit from Salary Packaging |
0 |
7,228 |
