Tax Savings
Just how much tax can you save?
Power Pays is all about helping you to maximise your net income as a contractor. There are lots of opportunities where you are able to legitimately reduce your tax through smart Salary Packaging. This gives you much more in your pocket.
The major benefit of using Power Pays services is that we can reduce the tax you pay and increase the after-tax dollars in your pocket.
Your Recruitment Company is often able to include you on to their books to pay your salary - but is this the best option for you? Usually not. You will pay your agency a fee for your insurances and also the cost of administering your pay. In addition you will not have the flexibility of full Salary Packaging services that Power Pays provides.
Power Pays can generally cover the fee you pay in what you can save through Salary Packaging. The net effect: you’re better off than if you were on the Agency books.
Here is how tax effective Salary Packaging can put more money in your pocket.
Let’s take a look at the following simple salary sacrifices:
If you do a basic novated car lease and your pre-tax weekly contribution is $388. This can give you a massive tax saving of $8070.*
Other Salary Packaging options you might like to consider are:
| Salary Sacrifice | Post Tax (normal) Cost | Tax Saving |
| Laptop/ PDA | $3000 | $1200 |
| Yearly Mobile Cost ($90/month) | $1080 | $432 |
| Internet($69/month) | $828 | $331 |
| Financial/Tax Advice | $660 | $264 |
| Professional Books | $300 | $120 |
| Income Protection | $1000 | $400 |
| Education/Course | $2200 | $880 |
| Total Saving* | $3,627 |
In the above example you are way ahead. But please contact us to assist you in determining the benefit to you of engaging Power Pays as your Payroll Services company.
Power Pays – how IT gets paid.
* Example only, this example is based on a contractor earning $65 per hour, it is recommended that you seek advice from your Accountant or Financial Planner prior to commencing any salary packaging to ascertain what is suitable for your situation. Power Pays does not provide financial advice.