Thanks!
We'll contact you within the next business day to discuss your calculation in more detail.
Talk to you soon!
Investment Loan Interest
Save tax on interest repayments on loans associated with income-earner activities. Available to all employees.
A win-win situation
If you have an investment loan which you fully use to produce income, you can package the interest charged on that loan. You need to be careful about what you claim, as you can only package the interest – not the principal – and only the portion in your name, so talk to us.
A win-win situation
Don’t let this one slip through the net. If you have an investment loan that you pay interest on, you can package the cost and maximise your savings. It’s important to know that you can only package the interest charged on your investment loan – not principal repayments. You’ll need to submit bank statements to confirm the amount of interest you’ve paid, the loan must be 100% for income-producing purposes, and it must relate to an Australian investment.
Other factors to consider: as the amount of interest varies from month to month, we are unable to set up regular reimbursements for investment loan interest. And if the loan is jointly held, you may only salary package your portion of the interest.
What you need to do, and what you should know:
· First you need an investment loan – you can use an existing one or set up a new one. Obtain a copy of your bank statement which shows the interest charges on your loan for the periods/months you wish to claim.
· Submit a claim form to us and attach bank statements as evidence.
· We will arrange for your employer to deduct the amount from your pre-tax salary.
· We will arrange for the full amount to be transferred back to you.
· You thus save on income tax.
· Depending on the amount, we may be able to spread the deductions over several pay periods to help you out.
How Much Could I Save With Salary Packaging?
Using your pre-tax salary to pay for things allows you to increase your disposable income and pay less tax – often thousands of dollars less each year. There are dozens of items you can potentially salary package, but some depend on your employer and the industry they work in.
It’s all fully approved by the Australian Taxation Office, however it pays to seek specialist clarification from us to ensure you gain everything you’re entitled to, and make the process of setting up your package easy. You can use our calculators for indicative savings, or talk to us today to find out more and the next steps to take towards saving!
Calculate Your Savings
Help Your Staff Buy A New Car
Find out instantly how your employees could save thousands on a new car and other major expenses. Call 1300 303 357 and speak to one of our friendly specialists today.
Get In Touch!
Find out how much you can save on a new or used vehicle with a novated lease through SalaryMasters. Enter your details and we will get in touch with you shortly.
