What is salary packaging?
Salary packaging allows you to effectively structure your income by paying for approved benefits from your pre-tax pay.
You can choose to receive your salary as a combination of cash and benefits. These benefits are either tax free or taxed at concessional rates. This means you reduce your taxable income, allowing you to maximise your tax benefits and essentially save you money.
About Prosperity Salary Packaging
Prosperity Salary Packaging was established in 2001 and is one of the leading providers of salary packaging and vehicle leasing services in Australia. With offices in Sydney, Newcastle and Brisbane and employing over 150 staff, Prosperity has the necessary resources and capacity to service the financial needs of our clients.
Our clients range from public hospitals, aged care facilities, charities, religious organisations, government agencies (local and state), universities, private schools, listed corporations and private businesses.
Our salary packaging team has grown extensively since 2001, to a current team of highly skilled employees. We pride ourselves on the longstanding relationships we develop with our clients and their employees.
In addition to the full range of salary packaging and vehicle leasing services, Prosperity also offers the following services:
- Business advisory
- Corporate assurance
- Wealth management
Our salary packaging business services the diverse needs of its individual employer clients throughout Australia.
What are the benefits
Prosperity Salary Packaging works to maximise the advantages of your salary package, which can enhance your lifestyle, reduce the amount of PAYG tax that you pay and allow you to take home more cash at the end of the day.
If you want to take advantage of a Federal Government incentive that will save you money, then Prosperity Salary Packaging can help you. With the cost of your selected benefits taken out of your pre-tax income, salary packaging will provide immediate tax savings.
How it works?
Arranging salary packaging is easy:
1. Nominate the benefit(s) that you would like to package
2. Your employer deducts the relevant amount from your pre-tax salary
3. Tax will then only apply to your remaining income
By reducing your taxable income, you will reduce the amount of income tax that you pay, which means more money in your pocket.
Salary packaging provides an opportunity for you to access direct savings in your regular pay. Paying or reimbursing your nominated benefits before tax means the savings can be used in a variety of ways, including:
- Make extra payments towards your mortgage
- Having extra cash each pay
- Improve your lifestyle
- Taking advantage of investment opportunities
Salary packaging makes saving money easy.
What can be packaged?
Prosperity works closely with clients to introduce a suite of benefits for employees. The Australian Tax Office guidelines offer varying benefits depending on the type of organisation you work for. You can receive benefits from your employer up to 100% of your total base gross salary.
Benefits can include:
- Car leasing (novated lease)
- Personal insurance
- Laptop computer (business use)
- Mobile phone (business use)
- Membership fees or subscriptions
- In-house benefits, depending on your employer
If you are an employee of a Public Health Service or a NFP, you may package an additional and extended list of benefits each year. These may include:
- Mortgage/rent payments
- Personal living expenses
- Eating out
- School fees
- Personal loans
Prosperity Smart Drive
Prosperity provides a complete vehicle management service called Prosperity Smart Drive.
Our service includes:
- Best price procurement of your new or used vehicle
- Sourcing competitive finance
- Administration costs by fuel card programs
- A full range of insurance products
- Ongoing monitoring and reporting of costs including payroll deductions.
Prosperity can manage all of your salary packaging and vehicle needs, under one roof! For more information, contact Prosperity Smart Drive on 1300 761 388 for a consultation or view our car packaging page.
Where do I begin?
Arranging salary packaging is easy! Our friendly team will work closely with you to arrange everything, including the following:
- The nominated benefit(s) you are eligible to package
- The payroll deduction set up and paperwork
- Tracking and reporting your expenses via our web portal
The next step is to contact a Prosperity Salary Packaging consultant for a private discussion on your salary packaging options.
- Alteration of Salary Packaging I want changes made to benefits packaged or other general changes
- Cessation of Salary Packaging I am retiring, leaving my employer or simply want to stop packaging
- Change of Details I have new bank account details, a new e-mail address/phone number/postal address
- Expense Reimbursement Claim I want to submit expenses for reimbursement
- Joint Authorisation I want my partner/accountant/other to have joint authorisation regarding my salary package
- Leave Form I am going on leave and want to advise Prosperity of this for my salary packaging