Peach Posted August 13, 2013 Share Posted August 13, 2013 My partner has been offered a job that includes salary sacrafice / packaging, managed by a company called Maxxia (www.maxxia.com.au) . Does anyone have any experience of this company? or tips and things to be wary of? On the face of it seems to good to be true. Thanks :wubclub: Link to comment Share on other sites More sharing options...
bensdad Posted August 13, 2013 Share Posted August 13, 2013 My wife has it albeit through epac. Scheme works great she gets something like $16,000 extra tax threshold per year that goes towards our mortgage. Link to comment Share on other sites More sharing options...
gwolst77 Posted August 13, 2013 Share Posted August 13, 2013 I use Maxxia for my car (including fuel, rego, rego and breakdown). One of the market leaders in salary packaging in Oz. Some words of advice 1. What do you plan to do with the car once the lease is finished? You can't just walk away and hand back the keys, you have to either buy the car out right, trade it in and take out another lease on a new car or lease the old car again. 2. The way the system works is that your costs are worked out for the lease and a deduction is made from your salary every month into your Maxxia account. All your bills are paid out of the Maxxia account, if you don't have enough money in the account the bills won't be paid until the are enough funds in it, apart from the car lease and fuel (they always get paid even if your account is in the negative). The problem is if for example you budget $200 for fuel but actually spend $300 one month it then screws up your budgeting for other things and they won't be paid. You then have to pay for the things yourself and then claim the money back from Maxxia when the account has enough funds. However in this situation you can claim any costs back incurred during the lease at any time. This has happened to me because I will probably be approx 4,000km's over by the end of my first year (too many trips to Ikea) and the price of fuel has jumped up, so I have increased my deductions to Maxxia over a 6 months period to cover the shortfall. But I probably will have to pay next years insurance and servicing (September) out of my own pocket and claim it back a few months later. I would over estimate your KM's for the first year just so you don't get into that situation. Link to comment Share on other sites More sharing options...
Peach Posted August 13, 2013 Author Share Posted August 13, 2013 Thanks, but we probably won't go for a novated lease. The offer she's geting includes salary sacraficing for pre-tax mortgage contributions, a Visa card, childcare and so on. Link to comment Share on other sites More sharing options...
Guest GeorgeD Posted August 13, 2013 Share Posted August 13, 2013 My wife works for a NFP organisation as a Nurse. They use Remserve, who are likely to be similar to Maxxia. She can salary sacrifice part of our mortgage, she gets a meals and entertainment card so can buy food in restaurants using money she has paid into it pre-tax, and has a venue hire account where she can get any accommodation paid for pre-tax, so if we go away anywhere it comes out of there. To someone from the UK who has never heard of this sort of thing it sounds completely bizarre that you would be able to do it...and yet it is quite common...my wife gets a higher allowance due to working for a Not For Profit, so it really is a great deal. It's part of the benefit of working for a NFP and Remserve are just the company who administer the scheme on behalf of her employer. If she doesn't use the allowances the worst that happens is that she gets the money back taxed at the normal rate. Link to comment Share on other sites More sharing options...
dmjg Posted August 14, 2013 Share Posted August 14, 2013 You can salary package upto about $350 per fortnight. This equates to $9000 before tax. It will go onto your group certificate as a FBT of $17000. It isn't taxable but does count towards your CCR and CCB. It will probably also count towards Medicare tax limit. We packaged towards our rent at first; our mortgage now. It cannot land in an offset account for some reason, any other seems ok. Maxxia charge about $18 administration per fortnight that comes off your totals. We haven't gone down the entertainment card yet as we rarely go out with two small kids. Can the accommodation section count campsites, georgeD? Link to comment Share on other sites More sharing options...
AJ235 Posted August 14, 2013 Share Posted August 14, 2013 Hi Peach I use Maxxia for my salary packaging. It does seem too good to be true at the beginning but I love it! I work for a Not for Profit organisation and I salary package the full amount that I can ($617 per fortnight) against my rental payments. How it works is they take the money out of my salary before I get it, my employer pays me the majority of my wages and then the next day after pay day I get the $617 into my bank account from maxxia. It really is worth doing as you get about $16000 extra tax free per year. In addition to that you can credit $ to a meals and entertainment card if you eat out regularly and that is also pre-tax. It is definitely something I wish the UK had!! Amy Link to comment Share on other sites More sharing options...
Quoll Posted August 14, 2013 Share Posted August 14, 2013 Another thumbs up for Maxxia. I sacrificed against my credit card because I didn't have any loans or mortgage. Worked really well for me working for a NFP. I did talk to the accountant about sacrificing into a new car but it wasn't cost effective - he suggested getting a loan to buy one then sacrificing against the loan but I didn't need to take a loan just bought it anyway. With Krudd's new FBT stuff impacting cars I would be a bit wary. The issues outlined above are spot on Link to comment Share on other sites More sharing options...
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