1

Last year Australians spent an estimated $642 billion on living costs – including $8 billion on beauty and a mere $2 billion on education. According to an infographic from MoneySmart we’re also spending a major slice of our wages on alcohol, cars and gadgets.

If you’re one of the few who are spending money on books over Botox, you could be saving as you spend by using your pre-tax dollars to do so.*

Self-education expenses, publication subscriptions and professional membership fees can all be salary packaged; so basically you can pay for your educational expenses before income tax is applied to your wages.

If you fancy improving your resume and taking a qualification or course related to your current employer you can package course fees, stationery, text books and student union fees. As these costs will come out of your salary pre-tax, you’ll be reducing the amount of tax you pay each year.

E.g.

Salary = $50,000

Annual course fee = $1400

Annual tax saving = $560

Total saving on course fees = 40%

 

You can find out how much you’ll save by using our quick online calculator.

Although you are able to claim self-education expenses on your tax return, you can’t claim for the first $250 you spend each financial year. However, by salary sacrificing your expenses you can save on the costs from the first dollar you spend.

Find out the finer details about how you can save money whilst building on your education in the ‘What Can I Package?’ section of our website.

*Log in to smartsalary.com.au to see if your employer offers salary packaging self-education fees as an employee benefit.

Click on a tab to select how you'd like to leave your comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>