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Albertzshot

Salary Packaging and Tax

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Hi everyone,

Can anyone advise if there is a % limit of the amount of your basic salary which can be "packaged"?

I currently use the scheme for LAFHA and currently exceed 50%. Would this be an issue for the ATO? If so I think I best place LAFHA on hold until the end of the tax year.

Thanks in advance

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There is a limit for concessional contributions which includes the employer contribution as well as salary sacrificed employee contributions.

If you are under 50 the limit is $25000 per year

If you are over 50 the limit is $50000 per year.

 

The tax payable is significant if you go over these amounts.


Buy a man eat fish. The Day, Teach Man, to lifetime.      - Joe Biden.

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Thanks for the reply Parleycross.

 

So being under 50, I'm entitled to package only upto $25k? Regardless of my basic salary ?

 

Have you seen any decent ATO Guidelines on this, I have had little success finding any docs re Salary packaging or LAFHA

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Just in case I misled you, the cap is only for your salary sacrifices and employer contribution to Superannuation.

 

Other packaged items are a separate issue, you can still package a car or whatever if your employee allows you to.

 

Just make sure you don't go over the $25K a year going to Super


Buy a man eat fish. The Day, Teach Man, to lifetime.      - Joe Biden.

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I only wish i knew what this all meant - I've read its worth hiring a tax accountant for these sorts of things as they often make you more many back than their annual fee?


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