Who can salary package the living expenses benefit?

This salary packaging option is available for the following industries:

• Healthcare & Charity
• Rebatable & Others

What is the living expenses benefit?

Living expenses are just that – expenses necessary to get by. Whether you’re looking to package the roof over your head, the food on your table at home or at a restaurant, or even your utility bills, you could put pre-tax dollars towards a range of expenses and potentially save on tax.

What counts as living expenses for salary packaging?

You could be eligible to salary package living expenses if you work for a:

• private or public not-for-profit hospital – up to $9,010
• charity or other not-for-profit organisation – up to $15,900
• eligible private schools, clubs or religious institution - up to $15,900**

The benefits you could be eligible for comprise a range of fixed and variable expenses.

FIXED

• Mortgage
• Rent
• Loan repayments

VARIABLE

• Groceries
• Utility bills
• Fuel
• School tuition fees (private or public schools)
• Council rates
• Clothing
• Dining out
• Movie tickets
• Gym memberships
• Private travel and holidays (domestic travel and overseas travel expenses)
• Household expenses
• Childcare (non-employer provided)
• HECS-HELP repayments
• Insurance premiums (including life, home/contents, health, car, and disability)
• Trauma life insurance (for yourself, your spouse and/or your dependents)
• Kitchen accessories
• Hand-held devices
• Other items you can pay for with your Maxxia Wallet***

Salary packaging utility bills

Nobody likes bills, but with salary packaging, they could be a little less painful. Whether it’s electricity, phone, gas, water or internet, you could make these payments using pre-tax funds in your salary packaging account.

Maxxia Wallet

Loaded with your pre-tax dollars, the Maxxia Wallet is the most convenient way to tap into your Living Expenses benefit – wherever you are, 24 hours a day.

While you cannot pay fixed expenses with this debit card, you can pay a range of variable expenses – simply tap at the point of payment like you would a bank card.

With the Maxxia Wallet*** you can enjoy:

• Real-time updates on card balance and account information
• Management of both Living Expenses and Meal Entertainment benefits through the one debit card
• Real savings on everyday products and services through the Everyday Savings Program

If the item you want to salary package isn’t listed above, we recommend confirming with your employer/us if you’re able to package it.

How much could you save with the Living Expenses benefit?

Let’s say you earn $60,000, you’re a health worker and you salary package your full $9,010 and $2,650 entitlements in Living Expenses and Meal Entertainment. Because you’re using pre-tax dollars for the items you package under this benefit, you could enjoy an annual net benefit of $3,644^{^}.

^{^}Assumptions: All calculations are for illustrative purposes only. The estimated potential tax benefit is based on the assumption that an eligible employee salary packages the specified amount and that Input Tax Credits (ITCs) are passed on by the employer. FBT rates effective 1 April 2024 and PAYG tax rates effective 1 July 2024 have been used, average fees and charges are included. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit and Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded. This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply. The availability of benefits is subject to your employer’s approval.

Potential financial benefit on Salary Packaging Living Expenses and Meal Entertainment. Annual salary $60,000

Living Expenses Cap: $9,010
Meal and Entertainment Cap: $2,650

Important things to know

You can only package Living Expenses if your employer allows it as part of your workplace benefits program. Contact your employer to find out if this benefit is available to you.

The Maxxia wallet fee is $4.40 per benefit, per month (GST incl.). This will be salary packaged and your deductions automatically increased to cover the charge. International transaction fees and disputed transaction fees also apply. Please refer to the Wallet’s Product Disclosure Statement for more information.

*Assumptions: The estimated potential tax benefit is based on the assumption that an eligible employee salary packages the specified amount. FBT rates effective 1 April 2024 and PAYG tax rates effective 1 July 2024 have been used and average Fees and Charges are included. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit and Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded. This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval.

**Employees are eligible for a 47% rebate on the Fringe Benefits Tax (FBT) subject to a capping threshold up to $15,900.

***This material is general information only. It does not take into account your particular/personal objectives, personal financial situation or personal financial circumstances. You should read the Product Disclosure Statement (PDS) for this product before making any decision on the new Card (Maxxia Wallet). You can read the PDS here. The Target Market Determination for this product can be found here. Maxxia Wallet is a Mastercard and is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131 pursuant to license by Mastercard. Maxxia Pty Ltd (Maxxia) ABN 39 082 449 036 is an Authorised Representative of EML Payment Solutions Limited Australian Financial Services Authorised Representative number 000278683 and participates in the promotion and distribution of the Card.

Things you need to know: The above information is not intended to constitute taxation or financial product advice. Your benefits and savings will vary depending on your personal objectives, financial situation and needs. We recommend you obtain independent financial advice before making any financial decisions. Eligibility criteria and terms and conditions apply. All salary packaging proposals are subject to the requirements of your employer. Administration fees will apply. The actual administration fee that applies to you may vary depending on your employer.

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