Welcome Pack
Remunerator (Aust) P/L ABN:79 713 023 583
Level 11 484 St Kilda Road Melbourne VIC 3004 Tel: 1300 654 834
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Table of Contents
Welcome to Remunerator ...... 4 Contact Us ...... 5 Accessing Information ...... 6 Remunerator Website ...... 6 Mobile Devices ...... 6 Automated Phone Service ...... 6
Explaining your Confirmation Report (EPA) ...... 7 Confirmation Report Breakdown ...... 8 How we make payments for your benefits ...... 9 Periodic Payments ...... 9 Reimbursements ...... 10 Submitting your claim for Reimbursements ...... 11 Altering your Salary Packaging ...... 12 Adding/Removing a Benefit/Changing an existing Benefit...... 12 Terminations ...... 13 Fuel Card ...... 13
Salary Package Statement Breakdown ...... 14
Fuel Card Report Breakdown ...... 15
How FBT is Calculated for your Motor Vehicle ...... 16
Lodging Odometer Readings ...... 17
Lodging Unavailability Readings ...... 18
End term for your Novated Lease ...... 19
Selling your car before the end of the term for your Novated Lease ...... 20
Selling your existing car on a Novated Lease and buying a new car ...... 21
Frequently Asked Questions ...... 22
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Welcome Pack
Welcome to Remunerator
Congratulations on your decision to take advantage of salary packaging. I’d like to welcome you to Remunerator. We will work with you to ensure you enjoy the many benefits available to you through our services. Whether you are looking to improve your lifestyle immediately, perhaps through the purchase of a car or house, or taking a longer term view and striving to improve your investment position, Remunerator can assist you in achieving your goals.
Salary packaging is a vital first step to achieving true financial independence. Maximising your earnings through salary packaging allows you to take control of the bigger picture.
We are also able to offer you access to Remunerator Financial Services where you have the option of further improving your financial position, both now and in the future. Our independent financial advisors offer a proud record of taxation and investment expertise and can assist you with retirement planning, mortgage reduction programs and investment strategies.
...it all adds up to financial freedom for life.
Thank you for making the decision to entrust Remunerator with your salary package. We take this responsibility seriously and will ensure you are provided with the best service possible.
Yours faithfully,
Matthew Honan Managing Director
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Welcome Pack
Contact us
The Remunerator Group is committed to delivering excellent service to all of our clients, customers & service partners, including handling any enquiries or receiving feedback from you.
Website www.remunerator.com.au
Phone
Monday to Friday General Enquiries: 1300 654 834 (Toll Free service – only available to interstate customers) Novated & Associate Lease Enquiries: 1800 501 703
Post
Remunerator PO Box 7296 Melbourne VIC 3004
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Accessing information
Remunerator Website
Your company programme and individual salary packaging account information is available 24 hours a day via the Remunerator website.
To access this information follow these steps:
1. Visit our website at www.remunerator.com.au
2. Click on the yellow login button in the top right hand corner and enter your package number and password. Your default password is your date of birth and should be entered as DD/MM/YYYY.
Once you have successfully logged in, you will find all of the account details and reports that you need to understand your payroll deductions and payments, and effortlessly manage your salary package.
3. Click on the green submit claims button and log straight in to submit your claims with our new simplified mobile friendly screens.
Mobile Devices
Remunerator offers a Smartphone application available for iPhones and Androids that is free to download, providing you with easy, 24-hour access to your account, as well as accessing information on salary packaging:
Submit your Claims/Reimbursement Learn about Salary Packaging Apply for a Novated Lease Watch the YouTube Video Obtain a Quote via the Calculator
Automated Phone Service
You can access automated salary packaging information, such as reimbursements currently being processed, by calling 1300 654 834.
Should you have any other enquiries, Remunerator can be reached during business hours. For details on how to contact us, please refer to page 5.
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Explaining your Confirmation Report
The Confirmation Report outlines how your package has been set up and includes:
the package start date, Benefits selected, the budget allocated to each benefit, first payment date, number of deductions, deduction amount.
When you have received your Confirmation Report, you should review these details and ensure the particulars are correct and what you expect. Please ensure you read and follow the instructions outlined in the covering letter as you may be required to sign your Confirmation Report and return it to your payroll department to action.
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Confirmation Report Breakdown
Frequency of payments made and/or available This is the amount in your package that will be available in line with the payment frequency. This is the GST payable on Post-Tax Total amount deductions budgeted for each for a motor benefit vehicle.
Vehicle Registration This date Number This is the FBT payable on your vehicle if indicates when you are using the Full FBT method (i.e, your package is deductions in pre-tax) due to cease. ‘Continuous’ packages will automatically commence in the next FBT year. This is the amount you can expect to be deducted from your pay Pre Tax
If you have selected the Employee Contribution Method to cover the FBT This is the This is the payable on your vehicle, this is the total amount you number of you can expect to be deducted from your can expect to deductions to pay Post Tax for this package. be deducted occur for this from your package. pay Post Tax.
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How we make payments for your benefits
A package start date will be advised on your Confirmation Report. The start date will align with your next available pay date and indicates the amount you can expect to be deducted from your Pre and Post Tax Salary.
The first payment made by Remunerator for each benefit will be specified in the first payment date column of the employee package Confirmation Report.
Periodic Payments
This method is used for expenses of a set amount, which occur on a regular and frequent basis such as mortgage repayments.
Once your salary package commences, payment via Electronic Funds Transfer (EFT) will be made, in accordance with the payment options specified on your Confirmation Report i.e.
The frequency of payment The amount of each payment The final date of payment (if applicable)
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Claims/Reimbursements
Some items within your salary package may require you to purchase an item outright and then claim this expense against your salary package. This payment process is referred to as ‘reimbursement’.
When you have paid for the benefit item, send a copy of the receipt / tax invoice together with a completed reimbursement claim form to Remunerator for processing. Funds will be paid to your nominated bank account as they are deducted from payroll.
How do reimbursements work?
Step 2 Step 4 Step 5 Step 1 Step 3
Submit your claim Remunerator Funds available You pay for your Remunerator transfers available and a copy of your in your account expenses in receipt by logging processes your funds from your person, by into your package, claim within two employer's salary 5 days after phone or or 'submit claims', business days packaging Remunerator receives your electronically. on our website or of receipt. account to your SmartPhone App. account. claim.
Example: You have budgeted $6,000 per year for your Motor Vehicle Running Costs. You have $231 deducted from your salary each fortnight for salary packaging ($6,000 ÷ 26). After 3 fortnights you have had $693 deducted from your salary ($231 x 3). $693 is available for you to claim
When you claim less than what has been deducted When you claim more than what has been deducted from your salary from your salary (eg. more than $693) (e.g. less than $693) 1. After paying $800 towards your motor vehicle 1. After paying $200 towards your motor vehicle running costs, you provide your tax invoices, and running costs you email your tax invoice, and a a reimbursement claim form, to Remunerator. reimbursement claim form, to Remunerator. 2. Remunerator processes your claim within 2 2. Remunerator processes your claim within 2 business days of receipt. business days of receipt. 3. $693 is deposited into your nominated account in 3 3. $200 is deposited into your account in 3 working working days. days. 4. The remainder of your claim is reimbursed to you 4. Please Note: You still have $493 available to claim over the following pay periods as the money is ($693 - $200). deducted from your salary. i.e. your claim for $800 is reimbursed over 2 fortnights ($693 + $107)
Remember: You will only be reimbursed the amount deducted from your salary. You will receive the funds in your account within 5 days of Remunerator receiving your claim or as funds become available.
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Submitting Your Claim for Reimbursement
There are several ways for you to make claims:
Mobile Device
Remunerator provides a free-to-download Smartphone App available for iPhones and Androids that allow you to:
Submit Claims/Reimbursements Access your Transaction History Apply for a Novated Lease Update your details
Remunerator Web Site
By logging into your “My Statements” area on our website, or by selecting the quick ‘Submit Claims’ option.
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Altering your Salary Package
If any of your personal details change, such as your address, phone number or salary details, it is important to notify Remunerator as soon as possible. This information is necessary in order for Remunerator to accurately manage your salary deductions and payments.
Adding/Removing a Benefit or Changing the amount allocated to an existing Benefit
Prior to the anniversary date, with the agreement of your Employer, you can change your existing package structure, a repackage fee may apply. Changing details within your package, such as account numbers or personal details, is not considered a repackage and no fee applies.
This can be done via 2 ways:
1. Website
Simply login to the “My Statements” area and complete the online amendment form. Once you have submitted the changes and your package is updated accordingly, you will receive an updated confirmation report outlining any relevant changes to deductions and payments, and the date it is set to take effect.
2. Email
Each client has a team email address depending on the type of client industry sector they are. These email addresses are listed below. This would also be the same email address which sent you your Confirmation Report. You simply email [email protected] with the requested changes to be actioned.
Both options come through to the team to action. Once this is completed, the team will send out confirmation of the change to the employee outlining when the altered deduction will take place.
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Termination
You can stop packaging your salary at any time with no cancellation fee. In order to Terminate your package, Remunerator will need notification in writing.
Under the following circumstances, terminating your package may be required. Please notify Remunerator immediately if any of the following circumstances become applicable to you:
Termination of employment Commencement of unpaid leave Transferring from full-time employment to part-time employment Suspension without pay Any transfer, promotion or reassignment to a position outside your current employer.
In order to terminate your salary package, you can contact our Customer Service Team via email as outlined previously or via phone, and request a termination form.
Fuel Card
You may elect to be provided with a fuel card such as MotorPass, which can be used to pay for maintenance and running costs. In doing so, you will pay with the card when purchasing fuel. The card provider will issue you with a monthly statement. This Statement is NOT to be paid by yourself. Remunerator will be invoiced separately and pay up to your annual budget. If you exceed your annual budget, Remunerator will contact you to advise you that your funds are exhausted and organize an increased budget.
Remunerator also provides a choice of fuel card facilities and includes:
Motor Pass Fuel and Maintenance card which provides access to most petrol stations and service centers and is not restricted to one brand. Widely accepted, this allows employees to use fuel dockets and provides discounts on a wide range of motor accessories, tyres and car rental;
Vehicle Management Program Remunerator's market leading vehicle management program in partnership with Australian Vehicle Consulting. The program is designed to control costs by authorising all service and repairs for their vehicle/s. This authorisation of vehicle servicing, tyres and repair work is a proven cost saving technique with an average savings between 15-30% on their repair and maintenance costs
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Salary Packaging Statement Breakdown
Package Balance Summary
Running For multiple cars in one salary Balance of package, each item would have the Transactions corresponding car registration number to assist in identifying which Total Package item was for which car. Tax Deductions
Payments made against package
Detailed Fuel Card Report, Please see next page for breakdown
ITCs Accrued GST on redeemable Contribution. Charges Finalised at package completion or 31st March.
Charged FBT. Charges Finalised at package completion or 31st March.
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Fuel Card Report Breakdown
Vehicle Registration Number of Fuel Card number corresponding Name of used for transaction with for transaction supplier for Type of item purchased item purchased
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How FBT is Calculated for your Motor Vehicle
Fringe Benefits Tax (FBT) is charged on all motor vehicles included in your salary package over the FBT year.
To calculate the FBT payable on your motor vehicle, a formula set by the Australian Taxation Office (ATO) is used:
Gross FBT Purchase FBT = X 20% X Up X Payable Price Rate Factor
Cost price of vehicle (excluding stamp duty, registration and Purchase Price = fleet discount but including dealer delivery and GST). Statutory Rate = 20% for all vehicles and distances travelled 2.1463 - Novated Leases Gross Up Factor = 1.9608 - Associated Leases FBT Rate = 49%
Example:
Purchase price of vehicle: $25,000 Distance travelled: 16,000kms – therefore the statutory rate=20% Lease type: Novated FBT payable: $25,000.00 X 20% X 2.1463 X 49% = $5,258.44
NB: Statutory and FBT rates are set by the ATO and are subject to change.
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Lodging Odometer Readings
Remunerator has developed a tool that enables you to quickly get a status update of how your motor vehicle is tracking in your salary package.
The Dashboard shows:
Your current expected odometer reading to be on track; How much of your allocated running costs has been utilised for petrol and maintenance; How long to go in the current FBT year.
This facility is available online and also via the Remunerator iPhone and Android Application.
As your actual FBT liability is calculated at the end of the FBT year (31 March) based on the actual km’s you have travelled, it is important that you provide us with regular odometer reading updates.
Your odometer readings can be submitted via the following.
1. Website
By going to www.remunerator.com.au, log into the “My statements” area and follow the instructions.
2. Phone App
By downloading Remunerator’s app, you are also able to submit odometer readings.
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Lodging Unavailability Readings
If you do not have use of your vehicle for a period of time, you may be able to declare unavailability. Your FBT liability will then be reduced by any days deemed as being unavailable.
You will only be eligible to claim unavailability in the following circumstances:
1. The vehicle is garaged on company owned or leased premises; AND The employer removes the control of the vehicle from the employee (eg. holds the keys) and ensures the vehicle is not available for private use by the employee or a family member of the employee.
OR
2. The vehicle is being repaired and you do not have access for at least a 24 hour period.
To lodge unavailability readings, you can either log in via my statements on our website or via our Smartphone Apps.
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End term for your Novated Lease
Two months before the end of the lease, Remunerator will contact you to advise that your Novated Lease is approaching its expiry. You will be presented with three options:
1. Lease a New vehicle
Remunerator will provide quotes on a new novated lease. We will also assist with sourcing the new car and organising the payout of the residual on the old lease.
2. Refinance the current vehicle
Remunerator provides quotes on extending the lease for the customer. If they choose this option we will organise to have the lease extended and the salary package to continue for the customer.
3. Paying out the lease
If the customer decides they wish to pay the residual, Remunerator will organise a payout letter from the financier that includes all of the relevant steps for them to follow.
Once this is complete, the salary packaging team will provide a new confirmation report outlining the changes to the lease or, a reconciliation of the terminated account and return any funds through your payroll. This will include finalising any packaging balances, collecting a final odometer reading and closing off of any fuel cards.
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Selling your car before the end of term for your Novated Lease
Remunerator can help you sell your car whether at Novated lease end, midway through a lease, owned outright or under regular finance.
At Remunerator we know this can be a daunting prospect so we’ve come up with the perfect service for you!
The Remunerator Sell My Car tool takes away the hassle, and will help you get the best price for your existing car.
Please see below for further information.
If you decide to sell your car before or at the end of your Novated Lease, Remunerator can help you get the best deal when selling your car.
Simply load up the details and pictures of the car (exterior and interior) and we’ll distribute it to our network of dealers and buyers and come back to you with the best price…for CASH!
It’s easy as 1,2,3…
1: Fill out your contact details and information about your Car via the ‘Sell My Car’ link
2: Load up photos of the car and of the service books
3: We shall get back to you with a CASH offer (usually within 24 hours) and either Accept or Reject
It is worth noting that sometimes the maximum selling price can be achieved through private sale.
Remunerator offers this service should you wish to sell any of your privately owned cars too!
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Selling your existing car on a Novated Lease and buying a new car
During your novated lease, you also have the option of replacing your existing car by selling it and purchasing a new car. Remunerator can also assist you in this regard. Remunerator can help source a new car, as we act primarily as a Buyer's Advocate for both new and used cars, providing personalised service that ranges from which car to consider purchasing, through to delivery.
You may opt to buy your new car independently, as you are not restricted to buying through one of Remunerator’s suppliers, and then provide your Account Manager with the details.
For more details on your Novated Leasing options, contact our Novated Leasing team at:
1800 501 703 [email protected]
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Frequently Asked Questions
We’ve included here some of the top FAQs for your information. Please refer to the Remunerator website for a complete listing.
General Salary Packaging Questions
1. How do I get the most out of my Salary Package? There are many items that the ATO allows to be paid as a Fringe Benefit from Pre-Tax Income. The specific Benefits available for you depend on which industry sector you work in and the programme that your Employer has selected.
For further information please contact the Customer Service Team on 1300 654 834. We also recommend that you seek advice regarding your specific circumstances from a Financial Advisor or Tax Accountant.
2. How will salary packaging effect my pay? Your payroll department will deduct the nominated portion of your salary before tax is applied. The funds will be transferred to us to make payments to the benefits you have chosen. This effectively reduces your taxable income with only the remaining portion of your salary subject to PAYG tax and will be reported on your Payment Summary for Individual Tax Returns accordingly. Please note if you work for a Health or Charitable organisation that is eligible for a Threshold, your Payment Summary will report the gross up value.
3. What will happen to my salary package if I have a pay increase or decrease? Generally there is no effect to your salary package if you receive a pay increase, you may however wish to add a benefit or increase your budgets to maximise your entitlements. A decrease in your pay could impact the amount we are able to deduct from your pay and the payments we need to make on your behalf. Please contact the Customer Service Team urgently to determine what action will have to be taken.
4. How do I change my personal details? It is important to notify Remunerator as soon as possible to ensure we accurately manage your salary package. Simply use the Update Contact Details areas available on our mobile app or website. Alternatively you may contact the Customer Service team on 1300 654 834.
5. Can I change my package during the year? We recommend that you thoughtfully budget your expenditure needs for the FBT year. This will minimise any disruption and avoid any repackaging fees that may be applicable.
6. Can I put my package on hold? If any of your circumstances change it is important to notify Remunerator as soon as possible. We will work with you to provide a suitable outcome.
7. Can I have deductions taken in advance? If any of your circumstances change it is important to notify Remunerator as soon as possible. We will work with you to provide a suitable outcome which may include taking deductions in advance to cover a period of absence or leave without pay.
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8. What happens to any unused funds that remain in my package? A full reconciliation of your salary package is conducted annually after the completion of the FBT year. Any unused portion of funds will be returned to you via Payroll with PAYG tax applied or in some cases will be carried forward into your new package to utilise.
9. Can I claim for additional items paid for on the same receipt? There are many specific rules set by the ATO when claiming for reimbursement. Each claim will be assessed by the Reimbursements Team to ensure compliance to these regulations and you will be notified if any part of your claim does not qualify.
Some common Benefit claims that are ineligible include;
• A drink purchased with fuel Motor Vehicle: Petrol & Maintenance Benefit • After market vehicle accessories (e.g. tyre rims, bulbar & sat nav) Motor Vehicle: Petrol & Maintenance Benefit • Drinks without any meal Threshold: Meal Entertainment Benefit
10. I have a receipt for something I purchased prior to packaging, can I claim it? You can use tax invoices and claim for reimbursement of expenses that are up to 12 months prior to the start date of your package. To claim a reimbursement you must show proof of expense and payment – i.e. invoice/receipt, credit card statement or bank statement showing payment has been made.
11. Can I separately claim any part of the packaged benefits on my personal income tax return? No, you cannot receive a tax benefit twice. If you package a benefit through your employer you are immediately prevented from claiming it again privately. The salary packaging programme brings forward any potential tax savings/claims that you may have had at the end of the financial year (June 30 each year).
12. What happens if I leave my employer? Your package will be reconciled to balance the deductions from your pay and payments made and ensure that the correct amount of Fringe Benefits Tax has been applied to your package. Any shortfall or overpayment will then be taken into account by your Employer in your termination pay.
13. What is the cost to salary package? As your salary packaging provider we manage your account for a small fee as negotiated with your Employer. This is included in your package and is paid out of your pre-tax earnings. The fee does not attract FBT or contribute to any Threshold Limits.
14. How will my package affect my HECS/HELP Debt? Salary Packaging increases your Assessable income which will affect how much HECS/HELP you are required to pay for that financial year.You will need to advise us and your payroll if you have a HECS/HELP debt.. Depending on individual circumstances, your package may effect your HECS/HELP repayments whilst still providing you with the benefit of savings through your salary package. We recommend that you seek further, specific advice regarding your circumstances from a Financial Advisor or Tax Accountant.
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15. Will my salary package affect my Family Tax Benefits and Child Support? Salary Packaging does not usually affect Centrelink Payments however; your individual circumstances will need to be reviewed.
Child Support payments will be based on an individual’s taxable income after salary packaging plus the reportable Fringe Benefits amount.
We recommend that you seek further, specific advice regarding your circumstances from a Financial Advisor or Tax Accountant.
Industry Specific Questions for Health, Charities and Rebateable Employees
16. What is a threshold? The Public Health and Charitable industry sectors can package specific benefits up to a limit set by the ATO without incurring FBT. Some of these benefits are; • Mortgage and Rent Payments • Credit Card Payments • Living Expenses
The limits are set by the ATO and subject to change. The current rates are; Public Health - $9,010 plus Entertainment benefit capped at $2,550 both per fbt year. Charitable Organisation - $15,900 plus Entertainment benefit capped at $2,550 both per fbt year.
Please note – As of the FBT Year 2017-2018, Entertainment benefit will be capped at $2650.
17. I work for a Rebateable Employer (Education/Trade Unions/Associations),how is FBT treated for me? Employers in this industry sector are eligible to provide a salary packaging programme with benefits up to a specified amount. The benefits provided by these types of Employers are subject to FBT at a rebateable rate of 51%.
18. When can I use my NAB General Expense Card / NAB Meal Entertainment Card? Your card may take up to 21 days to be delivered from the time of ordering and is issued by the NAB. Generally your card/s will be issued via post direct to you however; in some cases the NAB may forward your card/s to your nearest branch for collection. In these cases, a member of the Customer Service Team will notify you of the branch and instructions for collection.
19. What if I start throughout the FBT year? You can still package the full threshold. However, this can depend on what you are packaging, so please contact Remunerator to discuss.
Questions relating to a Motor Vehicle Lease
20. When can I use my Motorpass Card? Your Motorpass Card usually takes 14 days to be delivered from the time of ordering. During this time any expenses incurred for petrol and the maintenance of your vehicle may be submitted for Reimbursement.
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Please note that this card is issued by Wright Express Australia and is not a credit card. The card works similarly to a debit card with the funds you nominate to be deducted from each pay becoming available for you to spend.
21. When can I use the Vehicle Management Program? A detailed Vehicle Management Pack will be sent to you usually within 14 days from the time of ordering. The pack will include all information and instructions. For a list of dealers and merchants associated with our Vehicle Management Program, please visit our website or contact us for more details.
22. Why is my Confirmation Report different to my Novated Lease quote? Generally, your quotation will be based on a full year of salary packaging therefore spread over 12 months. Depending on when your package starts this may not be the case and your package will be based on the months remaining in the FBT year.
For example if you package commences in November, your deductions and payments will be established over the 5 remaining months to the end of March.
23. Can I package a Scooter or a Motorcycle? The Salary Packaging of Motorcycles and Scooters is allowed under the FBT act category of Residual Fringe Benefit. The FBT payable will be determined by a business log book. Your ability to Salary Package these types of vehicles is a policy decision of your Employer.
24. Do I have to travel the exact kilometres that I nominate? Your FBT will be calculated on the flat 20% statutory rate regardless of distance travelled.
Please note if you entered into your lease agreement prior to the 10th May 2011, your previously nominated statutory bracket and the associated FBT rate will be applicable.
25. Can I terminate my salary package prior to the end of my lease? If any of your circumstances change it is important to notify Remunerator as soon as possible. We will work with you to provide a suitable outcome including how to make payments for your lease direct to your Financier.
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