My new employer is offering me salary packaging of $15900.
I am wondering if this package can be received on top of the tax free treshold of $18200 or if I can only choose one?
Do I understand correct that my first $18200 of the total annual income is tax free? And that I can receive a salary package as well as that?
Appreciate any clarity in this.
Thank you
I assume that you are working for a not for profit employer that is allowed to provide $15,900 of salary packaging without having to pay FBT. If this is the case you are entitled to both the $18,200 income tax-free threshold and the FBT exempt salary packaging benefits.
You have it right. But all your income is added together and then taxed at different rates when you do your return. No you can't choose.
The threshold is spread through the year when you employer taxes your pay.
If you are a resident these are the yearly tax rates.
Tax rates – Australian resident | Australian Taxation Office
I assume that you are working for a not for profit employer that is allowed to provide $15,900 of salary packaging without having to pay FBT. If this is the case you are entitled to both the $18,200 income tax-free threshold and the FBT exempt salary packaging benefits.
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