What is the Essence of Salary Packaging?
‘Salary Packaging’ is a typical type of financial arrangement, which opens up a legitimate way for the monthly salaried class, to reorganize their monthly income smartly, so that the value of their net monthly salary can be substantially augmented. Moreover, by using this arrangement, such individuals will be also able to buy some valuable items of their own choice. In many practical cases, most of the employees try to procure pricy items such as brand new motor vehicles, laptop computers, tablets, smart phones etc. without causing dents to their existing savings, by going for this scheme. This is possible because, an agreed portion of the ‘pre-tax’ salary of the concerned employee is taken by the employer, to pay the monthly installment that is due to the financial firm, which has advanced the needed capital for buying the subject item, as per the wish of the employee. As a result of this, the employee will be getting the benefit of lowered taxable monthly earnings, because this amount goes straight off from the ‘pre-tax’ salary.
What is the main attractive feature of ‘Salary Packaging’?
One of the most important advantages of ‘salary packaging calculator’ is that, the scheme is a legally valid way to bring down the taxable monthly salary; in essence, this means that the concerned employee will be able to enjoy maximum monthly take-home salary, which of course, will be a great relief to the entire monthly salaried class. Another noteworthy advantage is that, they will be able to buy costly products in a cost-effective manner. In fact there are a whole lot of items such as new cars, expensive laptops, tablets, notebooks, iPads, GPRS units, income protection insurance, education, parking and fuel that can be salary-packed with the official consent of the ‘Australian Taxation Office’. When an employee wishes to buy a new model car, he or she, in any case, will have to find a viable financial source for the same, and for meeting this urgency, they may have to use their stored capital or sell some of their other valuable goods. However, when they get an offer from their employer, for using the financial scheme of ‘salary packaging’, then of course they can stay away from such drastic steps. This scheme will not only give them the needed resource for buying their intended brand new car, but also will provide them more take-home salary, because, the monthly reduction will be done by the employer, from the pre-tax salary of the employee. This ‘dual gain’ opportunity is indeed a tempting factor, and prompts all monthly salaried employees to go for ‘salary package’ schemes, whenever their employers offer such schemes.
Is it imperative to get quotes from different financial companies, before settling on one particular firm?
However, before finalizing a particular finance company for making use of the benefit of ‘salary packaging’, all employees should verify that they are getting a competitive interest rate. Getting quotes from different companies is not at all difficult, during the present-day; it can be done through online methods. The concerned employee must tally the received quotes and must go for the reliable, at the same time, more cost-effective option.
