Following the introduction of the Federal Government’s 2014 Budget, high income earners are set to be impacted by the new debt levy, which will see an extra 2 per cent on taxable income in excess of $180,000.
Taxpayer A, earns $190,000.00 per year will pay an additional $200 per year in tax.
Taxpayer B, earns $290,000.00 per year will pay an additional $2200 per year in tax.
The levy is predicted to contribute $3.1 billion to the budget over the next three years starting from July 1 through to June 30, 2017.
Pendragon a major provider of Salary Packaging services to Contractors Australia wide since 1998, suggests that “now is a great time for high income earners to think about their salary structure and whether they can reduce the impact of the Levy through Salary Packaging.”
Salary Packaging of expenses reduces the amount of tax payable on a per pay basis, leaving more of your hard earned money, in your back pocket.
Items to salary package:
- car parking
- transport and travel
- professional memberships or subscriptions
- mobile phone
- newspapers, magazines and journals
- computer software
- self education
- training seminars and workshops
- income protection insurance
- relocation expenses
- investment loans
- LAFHA home
- home office expenses
- And special items such as uniforms etc
Talk to us…. today to determine how we might salary package your wages and reduce the impact of the 2014 Federal Budget.