Bring forward your tax deductions through salary packaging

What Is Salary Sacrifice for Exempt or Deductible Items?

Salary sacrificing for exempt or otherwise deductible items allows you to reduce your taxable income by packaging work-related expenses. These items are typically tax-deductible and may be exempt from Fringe Benefits Tax (FBT) when used primarily for business purposes.

Instead of claiming these deductions at the end of the financial year, you can access the benefit upfront by having your employer reimburse the cost through payroll.

How Does Salary Packaging for Work-Related Items Work?

You agree to forgo part of your salary in exchange for your employer covering the cost of eligible items. This arrangement brings forward the tax deduction and may reduce your taxable income immediately.

Whizdom processes these reimbursements through payroll once you submit the required documentation.

Key Benefits of Salary Sacrificing Exempt or Deductible Items:

• Reduces your taxable income
• Brings forward allowable deductions
• May be exempt from FBT
• Covers a wide range of work-related items

Eligible Work-Related Items You Can Package

You may salary sacrifice the following items if they are primarily used for work:

• Portable electronic devices (e.g. mobile phones, tablets, laptops)
• Computer software
• Protective clothing
• Briefcases
• Tools of trade
• Professional association fees
• Income protection insurance premiums
• Financial advice fees
• Work-related self-education expenses (excluding HECS/HELP)

Important Note: Only one item per category can be packaged per FBT year (1 April to 31 March). Items must be purchased in your name and reimbursed via Whizdom’s payroll. To learn more visit the ATO website.

Substantiation Requirements

To access FBT exemptions, you must:

• Provide original tax invoices
• Declare the item is primarily for business use
• Submit the Salary Sacrifice Request – Exempt or Otherwise Deductible Items form

Important Rules and Exclusions

• Items exempt from FBT cannot be claimed again as a tax deduction in your annual return
• HECS/HELP payments and courses with a HECS/HELP subsidy cannot be packaged
• Additional warranties, accessories, or insurance are not covered

Step-by-Step: Submitting a Salary Sacrifice Request for Deductible Items

1. Purchase the item(s) following the guidelines above
2. Complete Whizdom’s Salary Sacrifice Request – Exempt or Otherwise Deductible Items form upload your original tax receipts and submit everything online.
3. Once all the necessary receipts and form have been submitted, Our Finance Team will review your request and confirm the arrangement with you before processing it in the next pay cycle.

For more detailed information, visit the ATO’s official page on Salary Sacrificing Or reach out to our finance team

for a confidential chat.