With the costs of everyday living increasing, employees are looking for more effective ways to support their lifestyles whilst also preparing for their future. One of the ways employees can achieve this is through salary sacrifice.
Your salary package includes your base salary, superannuation, and non-cash benefits, referred to as Fringe Benefits payments. Through negotiations with your employer, you can “sacrifice” a portion of your base salary to pay for fringe benefits to improve your cash flow.
One of the main benefits of salary sacrificing fringe benefits is you are using pre-tax income to pay for the expense which ought to reduce how much tax you pay and therefore improve your cash flow position.
For medical professionals in NSW that work in public health, you may be able to salary sacrifice fringe benefits of up to $17,000. Examples of fringe benefits you can apply this amount to includes home loan repayments, rent and school fees.
There is also a separate fringe benefit cap for meal entertainment which can also be used by public health employees.
Please contact Waterford Accountants to learn more about the benefits of salary sacrificing.