There are three main ways to increase your take home pay.
You could get a high paying job.
Ask your boss for a pay rise.
Or you can salary package.
And here's the tip: Salary packaging with Access Pay is so much easier than your other options. In fact, you may be able to start salary packaging as soon as your next payday.
Salary packaging allows you to pay for some of your expenses from your gross income. That means your tax is calculated on a lower amount. You pay less tax and enjoy more of your pay.
Here's how it works. Say you’re on a gross salary of fifty-five thousand dollars. In salary packaging terms, we call this your pre-tax income. Income tax is calculated on that fifty-five thousand dollars bringing your take home, pay down to almost forty five thousand dollars - about one thousand seven hundred dollars a fortnight. This is your post tax income from your post tax income. You’ll pay your mortgage or rent, bills, put food on the table, run your car and all the other things you do with your hard earned pay, just like you've always done.
But with salary packaging, your expenses are paid before your income tax is calculated.
Let's say you work for a not for profit organization and you’re eligible to package everyday living expenses, like the fortnightly grocery shop that is currently costing you two hundred dollars from your post tax salary. With salary packaging, we take the two hundred dollars from your pre-tax income, reducing the tax you pay by sixty-nine dollars per fortnight. Over a year, just by salary packaging, your groceries, you get to enjoy one thousand seven hundred and ninety-four dollars you would have otherwise paid in tax.
Groceries aren’t the only expense you can salary package. In fact, you can salary package up to six hundred and eleven dollars per fortnight. Or fifteen thousand nine hundred dollars per year to what expenses like your rent, or mortgage, utility bills and car expenses, and you'll save almost five thousand five hundred dollars per year in tax. Just imagine what you could do with all that.
Now, you're bound to have some excellent questions like what benefits does my employer offer? Does salary packing change the way I get paid and, most importantly, am I eligible?
For the answers to those questions and a whole lot more, check out accesspay.com.au.