Salary Packaging Examples - Annual Gross salary of $70,000
These examples show how salary packaging arrangements can work. It is only intended to be a guide and you should not act solely on the basis of this information. Please contact Return Salary Packaging or your financial advisor for further advice.
Return is a CPA business
The following assumptions are made about the employee in these examples:
- the 2006/2007 tax rates have been used to calculate income tax
- the tax free threshold has been claimed from the employer
- they are an Australian resident
- no tax offsets or special rebates have been claimed
- full medicare levy is payable
- there is no entitlement to leave loading
- there is no HECS debt or Accumulated financial Supplement debt
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Gross Annual Salary |
$70,000 |
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Superannuation |
$6,300 |
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Total Renumeration Package |
$76,300 |
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Laptop Purchase Comparison |
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$2,000 (incl GST) |
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No Salary Sacrifice |
Salary Sacrifice |
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Salary |
70,000 |
70,000 |
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less laptop (GST exclusive) |
- |
1,818 |
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less admin fee (GST exclusive) |
- |
100 |
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less FBT |
- |
- |
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New Salary |
70,000 |
68,082 |
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less income tax |
17,424 |
16,848 |
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Net Salary |
52,576 |
51,234 |
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less after tax cost of laptop |
2,000 |
- |
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Net Position |
50,576 |
51,234 |
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Gain from Packaging |
658 |
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Additional Superannuation Comparison |
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$200 additional super per month |
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No Salary Sacrifice |
Salary Sacrifice |
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Salary |
70,000 |
70,000 |
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less additional super |
- |
2,400 |
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less admin fee |
- |
100 |
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less FBT |
- |
- |
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New Salary |
70,000 |
67,500 |
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less income tax |
17,424 |
16,644 |
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Net Salary |
52,576 |
50,856 |
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less after tax additional super |
2,400 |
- |
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Net Position |
50,176 |
50,856 |
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Gain from Packaging |
680 |
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Novated Motor Vehicle Comparison |
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MV value $40,000, km's per yr 18,000 |
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Includes Employee Contributions |
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No Salary Sacrifice |
Salary Sacrifice |
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Salary |
70,000 |
70,000 |
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less motor vehicle costs (excl GST) |
- |
4,646 |
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less admin fee (excl GST) |
- |
318 |
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less FBT |
- |
- |
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New Salary |
70,000 |
65,036 |
|
less income tax |
17,424 |
15,864 |
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Net Salary |
52,576 |
49,172 |
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less after tax motor vehicle costs (incl GST) |
13,088 |
8,000 |
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Net Position |
39,488 |
41,172 |
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Gain from Packaging |
1,684 |
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Novated Motor Vehicle Comparison |
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MV value $40,000, km's per yr 25,000 |
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Includes Employee Contributions |
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No Salary Sacrifice |
Salary Sacrifice |
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Salary |
70,000 |
70,000 |
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less motor vehicle costs (excl GST) |
- |
8,664 |
|
less admin fee (excl GST) |
- |
318 |
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less FBT |
- |
- |
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New Salary |
70,000 |
61,018 |
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less income tax |
17,424 |
14,616 |
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Net Salary |
52,576 |
46,402 |
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less after tax motor vehicle costs (incl GST) |
13,907 |
4,400 |
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Net Position |
38,669 |
42,002 |
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Gain from Packaging |
3,333 |
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Liability limited by a scheme approved under Professional Standards Legislation
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