This week is the first article in our series and provides a
general introduction and overview of salary packaging.
We then take a closer look at specific benefits and how you
may be able to potentially increase your equivalent take-home
pay by including a particular benefit in your salary package.
Salary Packaging.
What is it?
How can I benefit from it?
In recent times there has been an increasing interest in Salary
Packaging (or Flexible Remuneration Packaging, as it is also
known) in the ADO.
The ADO introduced salary packaging in 1999, and today approximately
5,500 members are salary packaging, with more than 100 new members
signing up for the service every month.
Why is this service generating so much interest?
Through
Salary Packaging you can potentially increase your effective
take-home pay by up to a few thousand dollars.
It involves converting cash salary, which is taxable, into approved
benefits that are either tax-free or taxed at concessional rates.
The most commonly packaged benefits at the ADO are vehicles
(through a Novated Lease), additional Superannuation.
ADO-provided
childcare, and laptop computers.
The ADO is pleased to offer this initiative to all permanent
ADO members (military and civilian) because it provides attractive
options that may benefit all staff, not just those on higher
incomes.
Since salary packaging is an administratively complex process,
the ADO has retained the services of SmartSalary Pty Limited
to administer the scheme.
Please note that salary packaging is optional, not a mandatory
scheme, and though it may provide you with some attractive remuneration
options, your personal circumstances will determine how it affects
you individually.
Should you require further assistance, SmartSalary can direct
you to a number of independent financial advisors nationwide,
who are familiar with the scheme and can help you to understand
whether and how salary packaging can be integrated into your
overall wealth creation plan.
The ADO strives to provide its members with innovative and beneficial
schemes. We encourage you to find out more about salary packaging.
