Remote area benefits explained.

If you live and work in a remote area, you could be eligible to pay for your rent or interest on your mortgage repayments with your pre-tax dollars - and you could save on tax.

You could salary package the cost of:

  • interest you pay on your mortgage for the house you live in,
  • rent you pay to a private person or real estate agent for the house you live in,
  • rent you pay to your employer for the house you live in.
  • your electricity or gas expenses if you salary package rent or mortgage as a remote area benefit
  • purchasing a property in a remote area or the purchase of land to build a home in a remote area

Renting from your employer?

Here's an example:

Anna earns a salary of $120,000. She pays $20,000 in rent per year for her house provided by her employer. By salary packaging her rental payments, Anna enjoys $7,644 more in disposable income each year.

Here's how it works:

Item Not salary packaging Salary packaging
Gross annual salary $120,000 $120,000
Remote housing rental $0 -$20,000
Fringe benefits tax $0 $0
Administration fee $0 -$280
Net salary $120,000 $99,720
Input tax credits $0 $25
Net salary after input tax credits $120,000 $99,745
Tax & medicare -$34,432 -$26,533
Net salary $85,568 $73,212
Rental payment -$20,000 $0
Net cash salary $65,568 $73,212
Salary packaging benefit - $7,644

Renting privately or through a real estate agent?

Here's an example:

James earns a salary of $120,000 and pays $20,000 in rent per year. By salary packaging 50% of his rental payments, James enjoys $3,744 more in disposable income each year.

Here's how it works:

Item Not salary packaging Salary packaging
Gross annual salary $120,000 $120,000
Remote housing rental $0 -$10,000
Fringe benefits tax $0 $0
Administration fee $0 -$280
Net salary $120,000 $109,720
Input tax credits $0 $25
Net salary after input tax credits $120,000 $109,745
Tax & medicare -$34,432 -$30,433
Net salary $85,568 $79,312
Rental payment -$20,000 -$10,000
Net cash salary $65,568 $69,312
Salary packaging benefit - $3,744

Paying interest on your mortgage?

Here's an example:

Sam earns a salary of $120,000, and pays $10,000 in interest on his mortgage per year. By salary packaging his interest repayments, Sam enjoys $814 more in disposable income each year.

Here's how it works:

Potential tax benefits of salary packaging the cost of the interest you pay on your home in a remote area.

Item Not salary packaging Salary packaging
Gross annual salary $120,000 $120,000
Remote mortgage interest payment $0 -$10,000
Fringe benefits tax $0 -$4,804
Administration fee $0 -$280
Net salary $120,000 $104,916
Input tax credits $0 $25
Net salary after input tax credits $120,000 $104,941
Tax & medicare -$34,432 -$28,559
Net salary $85,568 $76,382
Mortgage interest payments -$10,000 $0
Net cash salary $75,568 $76,382
Salary packaging benefit - $814

Find out more

To find out how you could increase your disposable income with Maxxia's remote area benefits call
1300 123 123 today.

Simply fill out the form above and a Maxxia representative will contact you shortly to talk about your options.

Let's talk savings!  Leave your details below and we'll be in touch.

Our Privacy Policy contains important information about how we collect, hold, use and disclose the personal information that you are providing to us by submitting this form.

All fields marked * are mandatory.