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AccessPaySubscriber Information Bookletinfo@accesspay.com.au125 Rundle Street, KentTown SA 5067GPO Box 1238 Adelaide SA 5001Phone 1300133697Fax 1300 361 498How you can make SignificantTax Savings by Salary Packaging with AccessPay* Please read all of this information carefully. The guidance provided will assist AccessPay to administer your salary packaging arrangements swiftly and accurately.Australian taxation law allows certain organisations to offer salary packaging benefits to their employees. Salary packaging allows employees of these organisations to make significant income tax savings on their salary. Australian taxation law states that employees of these organisations will not be taxed on this money.When you salary package a part of your salary, you are not required to pay income tax on this money. There is a limit set by the Australian Taxation Office on how much employees of these organisations are allowed to salary package for 'living expenses', and this limit is $15,900in a Fringe Benefits Tax year (1stApril -31st March). Once you are salary packaging with AccessPay, you will only pay income tax on the remainder of your salary, not the salary packaged amount.The money you set aside for your salary packaging must be used to pay or reimburse you for what can be described as your living expenses. Unless we are reimbursing you for a living expense you have already paid, it is not possible to merely have this money paid into a savings account as a cash deposit. Unless you have been reimbursed for a payment already made, it is not possible to withdraw the salary packaged amount as cash. See the "Payment Options" section of this booklet.For a more detailed description of what living expenses are, please refer to Category A and B of the "Benefits List" in this booklet.AccessPay has provided this booklet in order to provide guidance to you about salary packaging and the laws that affect it, to generally de-mystify salary packaging, and to explain the function and services of AccessPay in a way that is clear and easy to understand.
If you have any further questions, please do not hesitate to contact AccessPay's national customer service centre in Adelaide on1300 133 697.AccessPaySalary Packaging ExplainedKate earns $40,538 per year. She pays $440 per fortnight in rent. She is also paying off a personal loan at a rate of $200 per fortnight. Kate can salary package both of these items and can use the full $15,900peryear as per her employer's salary packaging policy. Therefore her expenses are:Rent (paid direct to the landlord or Real Estate agency): $440 times26 (fortnights) = $11,440.00Personal Loan (for which she is reimbursed): $171.54times26=$4,609.50This in total is the maximum of= $15,900The total is the amount Kate is allowed to package in a 12 month period. Kate has elected for her rent to be paid directly to her landlord and to be reimbursed ($171.54per fortnight) for the payments she makes to her personal loan. She has filled out the Budget and Payment Authority Form and provided copies of her rental tenancy agreement showing her landlord's banking details and Kate's own personal loan statement, showing all her identifying details, to AccessPay.This is the way Kate's salary packaging arrangement delivers her tax savings. (*Savings are based on salary packaging the maximum for non-GST benefits and excluding the AccessPay Fee. Income tax savings are based on the 2014 -15tax rates.)Salary Packaging ExampleAssumes Salary Packaging used for a non GST expenseNo SalaryPackagingWith Salary PackagingGross salary40,53840,538Salary packaging paid to expenses(15,900)Gross taxable salary40,53824,638Less tax and Medicare levy(5,141)(1,271)Net salary paid to bank35,39723,367Expenses paid after tax-15,900Disposable income after expenses35,39739,267Savings per annum3,870