If you are an eligible employee within a Local Health Network, SA Ambulance or the Legal Services Commission SA, there are two ways to access your FBT exempt cap benefits:

1. Set up automatic payments where possible
The easiest way to access benefits is to set up automatic payments for items such as mortgage, rent or personal loan repayments. Once you've provided initial documentation to verify the expense (e.g. home loan records), your job is done. 

2. Through the Maxxia Wallet
If you are eligible for the FBT Exempt Cap, for living expenses, such as groceries and clothing and meal entertainment, the technology loaded Maxxia Wallet makes it easy  – there is no need to keep receipts and no claim forms to complete. You use it like a credit card - except the funds are drawn from your salary packaging account. Just swipe, sign or PIN, and go. To find out more go to live.maxxia.com.au.

3. Reimbursement claim
For novated lease, Work related expenses, self-education and financial advice you can lodge a claim for reimbursement using the app or claim forms. 

Ready to find out more?

•    check out the salary packaging calculator to estimate how much you could save
•    call Maxxia on 1300 123 123
•    complete an online quote

Important information: The information about the Maxxia Wallet is general in nature and does not take into account your personal objectives, needs and circumstances. You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement before making any decision.

Maxxia and the Government of South Australia work in partnership to provide the salary packaging program to employees. We have been helping South Australians salary package and make the most of their money since 2001.

Pay less tax
We all want to pay less tax, right? With salary packaging you potentially can, by paying for some expenses with pre-tax dollars – meaning you could reduce your taxable income and increasing your ‘take-home’ pay.   

Enjoy more spending money
At each pay cycle you could have more money to spend on the things you want.

Save on the cost of running your car
By salary packaging your car with a novated lease, you could reduce the cost of keeping your car on the road – and, perhaps, even step up to the latest and safest vehicles. 

Basically, you bundle the lease and the car’s running costs (including fuel, registration, insurance, servicing and maintenance) into one regular payroll deduction. And because you’re using a combination of pre-tax and post-tax dollars, you could save time as well as money.  

You can package a new or used car, or even your existing vehicle.

A simple explanation

This is what happens to your pay once you've set up a Maxxia salary packaging account:

• each pay cycle, your employer's payroll department deducts a nominated portion of your salary before tax is applied – and sends those funds to Maxxia
• Maxxia allocates these funds to your chosen benefits (or a combination of pre-tax and post-tax if you have a novated lease) 
• the rest of your salary is processed through payroll as usual and, after any other deductions and PAYG tax is applied, your post-tax salary is deposited into your bank account
• By getting taxed on a lower amount and effectively paying less tax, your disposable income could be increased. This could leave you with more to spend at each pay cycle

Fully approved by the ATO, hundreds of thousands of Australians benefit from salary packaging every year.   

The benefits you can salary package, and how much, depends on what your employer offers, as well as what the ATO allows for your particular industry.

Rest assured, Maxxia’s tax and compliance specialists are across all ATO rulings and developments in Fringe Benefits Tax legislation to ensure we can accurately and efficiently service your salary packaging needs.

Salary packaging can be complicated, but Maxxia takes care of the hassles so you can focus on enjoying the benefits. After Maxxia sets up your salary packaging arrangements they also manage them for you, paying your nominated expenses with your pre-tax dollars. Set and forget – no more juggling bills and due dates! 

Keep track of your benefits

Although Maxxia pays for your expenses on your behalf, it's still important you know what's being paid and how much is in your salary packaging account at any time. 

Your Secure Maxxia Online is accessible 24/7 and allows you to: 

• view your transactions
• view your account balance 
• change your details
• submit reimbursement claims for eligible expenses

Certain salary packaging benefits will be reported on your PAYG payment summary as a Reportable Fringe Benefits. This may impact other financial arrangements (benefits and obligations) you have in place. For example; education debt repayments, child support arrangements and Centrelink benefits.

Child Support and Government payments such as Centrelink
A salary packaging arrangement may impact the amount of benefit you receive from Centrelink, and can also impact on other financial payments such as Child Support Payments.

The Department of Human Services (Centrelink) use adjusted taxable income to calculate eligibility for certain benefits. This adjusted taxable income includes any reportable fringe benefits amounts.

Reportable fringe benefits are benefits you get from your employer such as salary sacrifice. You will need to advise the Department of Human Services the total amount of reportable fringe benefits you get from your employer and if you are employed by a public benevolent institution (Legal Services or a Local Health Network / SA Ambulance Service).

For more information please contact the Department for Human Services.

Education Debts such as HECS/HELP
Salary packaging can still be beneficial if you have a HELP debt; however, it could increase your fortnightly education debt repayment by 1% to 2% of your gross income. So while you may repay your debt at a faster rate, you may still make significant tax savings.

If you have a HECS/HELP debt, you may need to adjust your repayments when you salary package. This is because your HECS/HELP repayments are calculated based on your ‘HELP Repayment Income’ (HRI). In most cases, this will be your annual taxable income plus your total reportable fringe benefits amount shown on your PAYG Payment Summary.

Although salary packaging can reduce your taxable income, it can increase the gross value of your salary. This is referred to as your 'adjusted taxable income'. The ATO assesses you on your 'adjusted taxable income' when working out how much you should pay in HELP or HECS repayments. Your adjusted taxable income equals your salary plus the gross value of your fringe benefits (e.g. for a SA Health employee packaging their $9,010 capped benefits $40,900 income + $17,000 gross value = $57,900).

Before you start salary packaging, please tell your payroll department to take additional HELP or HECS repayments from your salary.

You should seek financial advice or contact the ATO to understand the impact on your individual circumstances.

The FBT cap you can salary package depends on the industry you work in. 

If you work in the health or charity sector, you can package certain items up to a set amount. This is referred to as your 'cap limit'. 
The cap limit is the highest amount you can salary package within a Fringe Benefits Tax (FBT) year (1 April to 31 March) without incurring FBT.

If you salary package capped benefits over your cap limit, FBT will be applied to the expenses - and you could pay tax on the extra.

What are the cap limits for my industry?

Local Health Network

Local Health Network employees may be eligible to salary package a range of benefits within a Fringe Benefits Tax cap exempt limit of $9,010 each FBT year (1 April – 31 March). This amount assumes that the payments are not subject to GST. Where payments are subject to GST, this amount will be reduced to $8,231. There are also additional benefits you can choose to package over and above the FBT exempt cap limit. 

Legal Services Commission SA employees

Legal Service Commission SA employees can salary package a range of benefits up to $15,900 each FBT year.

This amount assumes that the payments are not subject to GST. Where the payments are subject to GST this amount will be reduced to $14,525.
Both of the above groups are able to package the Meal Entertainment benefit up to a cap limit of $2,650 each FBT year. This is over and above the FBT Exempt Cap limits noted.

Which benefits are capped and which are not?

Health and charity employees

Examples of capped benefits for health and charity employees include:

• mortgage and rent payments
• living expenses
• Meal Entertainment  

Examples of uncapped benefits for health and charity employees include:

• Novated leasing a car
• Additional superannuation
• Work-related devices
• Professional memberships

Each capped fringe benefit has a Reportable Benefit value. This is shown as a grossed-up taxable value (GUTV) and is noted on your payment summary. The GUTV of a benefit is the salary that you would have to earn in order to purchase the benefit from after-tax dollars.

Therefore, the cap limits for health organisations is $9,010 per FBT year; for charities, private schools, clubs, associations and religious institutions it’s $15,900 per FBT year

Therefore, based on the grossed-up values provided by the FBT Act (1.8868 for non-GST items; 2.0802 for GST-applicable items), the GUTV of capped benefits for health employees is $17,000, and $30,000 for charities, private schools, clubs, associations and religious institutions.

If you have any questions about how GUTV can affect your personal circumstances, we recommend you seek financial advice.

A small fee for a potentially big saving.

Maxxia charges an administration fee that is dependent on the benefit and agreed upon with the Government of South Australia. All fees are paid out of your pre-tax dollars and don’t contribute to your cap limit or attract FBT. 

Additional charges may apply for the Maxxia Wallet, novated leases and additional superannuation contributions.

Want more information on fees? Please refer to your Info Guides for details.

No matter whether you’re employed on a full-time, part-time or casual basis or how much you earn, if you're paying income tax, you could save by salary packaging. And depending on your employer, you can salary package as much or as little as you like.

The Maxxia Wallet is a technology-loaded smart card that makes claiming everyday living expenses, such as fuel and groceries, fast and easy. The card also carries meal entertainment funds if the employee selects that option.

You use it like a credit card – except the funds are allocated from your salary packaging account. Just swipe, sign or PIN, and go. 

To find out more go to live.maxxia.com.au.

Important information: The information about the Maxxia Wallet is general in nature and does not take into account your personal objectives, needs and circumstances.  You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement before making any decision.

As per the Maxxia Wallet Product Disclosure Statement, the Wallet should not be used for setting up recurring direct debit or direct credit payments, money transfers or money orders, withdrawing money from an ATM, loan repayments or credit card bill repayments.

You can choose to salary package additional superannuation to a complying South Australian Government Superannuation Fund, such as the Super SA Triple S Scheme, directly through Shared Services Payroll, or through Maxxia to a complying superannuation fund of your choice.

If you only contribute to Super SA Triple SA Fund, contribution caps do not apply.

For more information go to the ATO website or check our FAQ's.

The Government of South Australia offers salary packaging to all permanent full-time, part-time and casual employees. 

With salary packaging, you have the option to make additional before-tax contributions into any compliant superannuation fund through Maxxia, or you can choose to make before-tax contributions to a Super SA Triple S account through Maxxia or Shared Services Payroll. 

Additional superannuation contributions from before-tax salary are subject to 15% contributions tax. The taxation of additional superannuation contributions via salary packaging may differ from the taxation of additional superannuation contributions from after-tax salary. For up-to-date information, please refer to ato.gov.au. 

It is recommended that you seek professional independent tax and financial advice in regards to your personal circumstances.

Maxxia will require your Unique Super Identifier and a Tax File Number declaration to make contributions to a compliant superannuation fund on your behalf. 

For self-managed funds, Maxxia will also require your Electronic Service Address. 

You can benefit from salary packaging even if you have a HELP (Higher Education Loan Program) or HECS (Higher Education Contribution Scheme) debt. When you salary package, you are using money before it gets taxed. This could reduce your taxable income – and increase your disposable income.  

Understanding your 'adjusted taxable income'

Although salary packaging can reduce your taxable income, it can increase the gross value of your salary. This is referred to as your 'adjusted taxable income'.

How your adjusted taxable income impacts HELP/HECS repayments

The ATO assesses you on your 'adjusted taxable income' when working out how much you should pay in HELP or HECS repayments. Your adjusted taxable income equals your salary plus the gross value of your fringe benefits (e.g. $40,900 + $17,000 = $57,900).

HELP repayments are calculated based on your 'HELP Repayment Income'. In most cases, this will be your annual taxable income plus your total Reportable Fringe Benefits Amount shown on your PAYG Payment Summary.

*RI = Taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable super contributions and exempt foreign employment income.

The table below shows the potential annual benefit from salary packaging with a HECS/HELP debt.

Potential annual benefit for a health employee

*Assumptions: Estimated Annual Benefit based on an eligible health employee salary packaging the full $9,010 per annum limit and $2,650 for meal entertainment expenses. PAYG tax rates effective 1 July 2020 have been used. HELP repayments are based on 2020-2021 HELP repayment thresholds and rates. An average administration fee of $190 is included in the example. The actual administration fee that applies to you may vary depending on your employer and may alter the calculation. Estimated Annual Benefit based on the assumption that an employee does not have any accumulated Financial Supplement debt. Your benefits will vary depending on your income and personal circumstances. Compulsory HELP repayments commence once your adjusted taxable income reaches $46,620.

** i.e. $9,010 on living expenses post-tax

Potential annual benefit for a charity employee

*Assumptions: Estimated Annual Benefit based on an eligible charity employee salary packaging the full $15,900 per annum limit and $2,650 for meal entertainment expenses. PAYG tax rates effective 1 July 2020 have been used. HELP repayments are based on 2020-2021 HELP repayment thresholds and rates. An average administration fee of $190 is included in the example. The actual administration fee that applies to you may vary depending on your employer and may alter the calculation. Estimated Annual Benefit based on the assumption that an employee does not have any accumulated Financial Supplement debt. Your benefits will vary depending on your income and personal circumstances. Compulsory HELP repayments commence once your adjusted taxable income reaches $46,620.

** i.e. $15,900 on living expenses post-tax

Yes, you can. Additional HELP repayments can be salary packaged if you wish to pay your HELP debt off sooner.

Example:
Barry has a debt of $4,500 and makes a $1,500 voluntary repayment reducing his total debt to $3,000.

Use our HELP calculator for salary packaging.

Contact Maxxia on 1300 123 123 to see how salary packaging could help you pay your HELP debt off sooner and increase your disposable income.

Salary packaging could reduce your taxable income but may affect the way the ATO calculates your HECS/HELP repayments – which could leave you with a tax bill at tax time. So your employer may not be taking out enough HECS/HELP repayments or in some cases, may not be deducting any HECS/HELP repayments at all.

To avoid a possible shortfall at tax time for unpaid HELP repayments, you need to let your payroll department know when you start salary packaging as they may need to adjust the amount of your withholding-tax deductions.

While each employer is different, in most cases your payroll department will be able to help you manage the process and changing your HECS/HELP repayments is quite simple to do.

Your payroll department may have its own form or they may ask you to use the ATO's Tax declaration form or Withholding tax form. Check with your payroll department first.

This is quite simple to do and in most cases your payroll department will be able to help you manage the process.

Yes – you have the choice and convenience of a fully-maintained lease or you can choose a self-managed lease. 

With a fully maintained lease, a dedicated leasing consultant coordinates the set up and ongoing management of your lease, including sourcing a car of your choice, arranging your finance, calculating your budgets for running costs and lease repayments upfront, plus managing your end-of-lease options. You could benefit from Maxxia’s national buying power when purchasing a vehicle through our extensive dealership network.

You also have the option to choose comprehensive insurance from Maxxia's insurance provider, or you can choose your own comprehensive insurance provider. You also have the option for additional lease protection products through Maxxia’s providers including:-

• Lease Protection
• Total Loss Assist (gap cover)
• Residual Protection
• Extended Warranty 

Maxxia can also provide you with a choice of three convenient fuel cards – Ampol, BP or Shell.

With a self-managed lease, you take full control of the day-to-day management of your lease – from organising your own finance and insurance, to setting your own budget to pay for the lease repayments and running costs. However, Maxxia will still set up your salary packaging account so that your lease repayments are automatically deducted on a fortnightly basis and the lease payment paid to the financier monthly on the nominated date.  Maxxia will process claims for reimbursement of eligible expenses that you submit for processing.  Both lease payments and claims are paid subject to availability of funds in your account. 

When you go to top up your fuel, a self-managed lease has the option of a BP Fuel Card.

Yes! In most cases you’re not limited to any particular car type, model or make. You’re not restricted to just new cars with a novated lease, either – you can lease a used car, or even your existing vehicle. (Some conditions may apply and the age of the car you wish to lease needs to be considered.)

Whether you drive fewer than 10,000 or more than 50,000 kilometres a year, a novated lease is a great way to finance a car. And you could save on tax.

Yes. The claim “you need to earn big to benefit from a novated lease” is probably the main myth to debunk.   

For example, an employee earning $60,000 could save more than $1,700 a year on a novated lease.

You don’t pay GST on the purchase price of a new car purchased through a dealership instantly saving you thousands, and then there’s the convenience factor: all your car’s running costs – fuel, servicing, registration, insurance – are bundled into one regular payment, meaning bill shock is a thing of the past. 

So you’re saving time and money – and reducing your stress levels.

Hold the GST. 
That’s right – when you source a new car through a dealership, you don't pay GST on the purchase price.

Potential tax savings.
Because part of your novated lease payments come from your pre-tax salary, your taxable income could be less. Once your deductions commence, your payslip will show the pre- and post-tax deductions made to Maxxia relating to your novated lease. With a regular car loan, you’d be making all loan and running expense payments with your post-tax salary – and giving more to the taxman.  

Access to competitive third-party pricing with a fully maintained lease with Maxxia.
As one of Australia’s leading novated lease providers, Maxxia has long-held relationships with suppliers and insurers nationwide, and can help you get competitive prices. We also deal directly with your mechanic on the servicing and maintenance of your vehicle.

Roll up, roll up. 
Cruising along an open road in your new car aside, it’s the convenience of a novated lease that many enjoy. In addition to your car repayment, all of those dreaded running costs – fuel, servicing, insurance and, most pertinently, registration – are rolled up into one regular payroll deduction. 

Near the end of your lease – usually one to five years – Maxxia will contact you to discuss your options. You may be able to: 
•    keep the car: you pay the remaining amount owing on the car (conditions may apply)
•    refinance the car (conditions may apply if the car is more than seven years old at the end of the lease, or valued at below $5,000)
•    upgrade to a new car: you would trade in your current vehicle and pay any amount owing
•    sell the car: you will need to pay off the remaining amount owing

With people changing careers more than ever, this is a likely scenario for many people. But you have a number of options available and subject to whether you are transferring to another SA Government agency employer.  Including:
•    paying the amount owing and buying the vehicle outright
•    continue paying the lease and running costs directly yourself (with your post tax funds)
•    transfer the lease to your new employer (subject to your new employer's approval).

Circumstances change, markets fluctuate and all manner of other variables can push your expenses north or south. With a fully maintained lease Maxxia is available to help. 

If you are spending MORE than budgeted…

Maxxia will contact you to discuss increasing your regular payments to ensure you can cover the higher amount. You should also monitor your online statements regularly and contact Maxxia if you notice your budget is being overspent. Maxxia can adjust your deductions even sooner.

If you are spending LESS than you budgeted…

You can contact Maxxia to discuss adjusting your running expense budget in line with your usage.

With a self-managed lease, you will need to monitor your account balance and expenses to ensure that you have adequate funds to pay your regular lease payments and to cover claims that you may lodge for reimbursement.

Where insufficient funds are available in your account, Maxxia will be unable to pay your lease payment and you will be required to pay the amount directly to the financier using your post-tax funds.  This payment is not able to be claimed as a reimbursement and the associated tax benefit for this amount is foregone.

At the end of your lease term Maxxia will reconcile your account within 60 days. If there is money in your account, the funds will be sent to your employer to be processed via payroll, with PAYG to be applied before the balance is paid to you. 

You’ve probably seen both these acronyms pop up in your benefit quote or online calculator result. 

Fringe Benefits Tax (FBT) is a tax which is applied to benefits you receive from your employer that are not in the form of cash salary or wages. For example, a novated lease is a benefit outside your cash salary or wages – so it is subject to FBT. As of the 1st April 2020, the FBT rate is 47%. 

This is where the ECM bit kicks in.

But what does ECM mean? Now a standard novated lease calculation, the ECM – or "employee-contribution" method – helps offset any FBT you may be liable to pay on your novated lease. By making after-tax as well as pre-tax payments you could reduce the taxable value of your car to $0, and minimise the risk of FBT liability at the end of the FBT year (31 March).

Yes, The SA Government does not have a specific list of vehicle available to lease. Beyond that, vehicles designed to carry one tonne or more and designed to carry 9 passengers or more are also not eligible under a novated lease.  So that means some utes are off limits, but some of the Australia’s most popular utes and trucks including the Ford Ranger and Toyota Hilux are OK.

Whether you’re seeking a ‘weekend car’ or something for an immediate family member, you can – dependent on your employer’s novated lease policy – lease multiple new or used cars and get the same convenience and cost-effectiveness. The additional vehicles would be leased under your name and the payments deducted from your salary.

With a fully maintained novated lease with Maxxia, getting approval for your novated lease is fast and easy. Maxxia can obtain approval of applications within four hours of receiving your request with our secure on line application process with our panel of financiers.

With a self-managed novated lease, the approval process will be dependent upon which financier you select and you manage that process directly with your chosen financier.