Have You Recently Relocated for Work Purposes?

If you have recently relocated for work purposes, there’s a range of benefits you are entitled to. Relocating can be an expensive and stressful process, but thanks to salary packaging, you can eliminate many of the costs and headaches involved. Every single year millions of people are relocated for work. Companies hire new employees in the area or staff are sent on long-term corporate assignments. For many, it can be a big perk of the job – travel, new environments and innovative opportunities. For others, it can be costly and challenging.

According to MoveHub, 34.8% of global migrants move for work, either with a current or new employee. Almost a third of those people have a job prior to moving, with 9.6% receiving a relocation budget or financial pay out from their employer for the move. Regardless of whether you buy or rent, there are big savings to be made on relocation costs. From stamp duty, legal fees, advertising and borrowing expenses, the benefits of salary packaging are significant.

Under the FBTA (Fringe Benefits Tax Act), there is an exemption from FBT for a workplace that either pays or reimburses your relocation costs. Your employer will get tax deductions for the relocation costs paid, and can, therefore, claim GST input tax credits back on the payment too. This makes the salary packaging arrangement a mutual benefit for both the employer and yourself.  Here’s what you should know you’ve recently been relocated or planning on moving soon:

If You Sold Your House to Relocate, You Can Salary Package the Cost of the Agent’s Commission

For employees that need to sell their homes in preparation for relocating, home sale and buying services can be salary packaged. This means the company will pay any closing costs and agent’s commission on the sale of your old home. Employers that need their staff to move for work purposes want to make the process as easy and as cost-free as possible. Thus, house hunting costs will be covered to allow time to search for a home in the new area you’re being relocated to.

Salary Package the Cost of Your Stamp Duty on Your New Home

Stamp duty is a costly charge we’re required to pay on new homes. But, if you’re moving for work and you need to buy a new property as a result, these costs can be salary packaged to save you money. Stamp duty is classified as an incidental expense incurred by the employee because of the required relocation. Other costs that fall into this include legal fees, advertising to sell or rent out your home, discharge of mortgage costs, associated utility charges and expenses of borrowing. All these will be covered by your workplace and salary packaged to assist with the move.

Salary Package Moving Costs

It doesn’t matter if you’re relocating locally or across the country, moving always ends up a big expense – especially when family is involved too. Salary packaging moving costs for relocation is the best and easiest way to save money. You’ll need transport to and from the new location (especially during the house hunting stages), along with moving your belongings over, including shipment of vehicles. Getting you and your family to the new destination, whether it be by plane, train or car, will all be salary packaged as well.

Salary Package Living Costs for Up to 12 Months

If your employer only requires you to relocate for a temporary period of time, living costs can be packaged for up to 12 months. Even whilst you are still running a home in your prior location, expenses that occur because of the move can be also packaged. Travel expenses and temporary housing costs are included throughout this time frame too.

Salary Package Utility Connection Costs

The cost of connecting telephone, electricity, gas and other utility services can be salary packaged.  To qualify for this benefit, the connection or reconnection must be to your home that’s been required solely because of the relocation for employment. Services must be connected within 12 months of you starting work at the new place of service. Documentation of the connection and reconnection costs are usually encouraged to be provided to your employer as proof.

Other expenses that can be packaged for your benefit include relocation consultant costs, employment interviews or selection tests, leasing of household goods and removal and storage of household effects. Miscellaneous expenses such as professional cleaning, necessary repair works and updating vehicle registration and licenses, providing they’re part of the relocation costs, can also be packaged.

Relocation reimbursements through salary packaging make moving for work easier and practical. The arrangement enables you to use some of your pre-tax salary to pay for these benefits offered by your place of work. It doesn’t matter if you’re currently renting or own your home, or if you’re planning on renting or buying a new property in the area you’re being relocated too, the benefits of salary packaging moving costs is something every employer should consider. 

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