As an essential healthcare worker, you make a huge contribution to the community. So, isn’t it time you were rewarded for your hard work and sacrifice?
One way you can do that is through salary sacrifice. Also known as salary packaging or total remuneration packaging, salary sacrifice lets you use some of your before-tax salary to cover set expenses such as a car loan or childcare fees.
Because salary sacrifice deducts payments from your salary before you’ve paid tax on it, this reduces your total salary for tax purposes. This means your taxable income is lower, so you could pay less tax as a result. Salary sacrificing can make a difference to your take-home pay, especially if you’re on a higher salary, and it may take you into a lower tax bracket.
A special deal for health professionals.
It’s even better for some healthcare workers. The law allows eligible healthcare workers to sacrifice up to $9,010 each year towards your mortgage repayments. Imagine how much faster you could pay off your mortgage as a result.
Am I eligible?
If you’re employed by a public, not-for-profit hospital, charity or other not-for-profit organisation, or you work for an ambulance service, you may be eligible to salary sacrifice part of your home loan repayments.
Salary sacrificing your mortgage has other benefits.
Paying less tax can give your finances a boost. But there are plenty of other potential benefits of salary sacrificing towards your mortgage repayments.
- Pay off your home loan faster: By salary sacrificing your mortgage, you could pay less tax, giving you more of your income to spend. You could also use this money to make extra mortgage repayments (if your loan contract allows). Depending on how much you pay and interest rates, this could shave years off your mortgage.
- Pay less interest: The faster you pay down your mortgage, the more you could save on interest.
- Build your borrowing power: By salary sacrificing, you’re taking home more money, giving you the potential to build your savings. This could allow you to borrow more – and finally afford that dream home you’ve had your eye on.
- Have more money to spend: Of course, just because you have extra money in your account, it doesn’t mean you have to spend it on your mortgage. It’s your money – so spend (or save it) how you want to. This may mean a well-earned holiday, a new car or building a rainy-day account.
- Have one less payment to manage: Utilities, rates, insurance, education fees – keeping track of all your bills can take up your valuable free time. But if you choose to salary sacrifice your home loan repayments, your employer makes the payment on your behalf – giving you more time for yourself.