Deducting Electricity Bills
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Salary Packaging Electricity
Employees of some Queensland Government entities are eligible to salary package utilities as a Fringe Benefit Tax (FBT) exempt benefit up to a limit of $1,333.33 per FBT year (1 April – 31 March).
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- You can also salary package the ambulance levy included in your electricity bill.
- The benefit is offered as reimbursement from your salary packaging, up to the value of $1,333.33 per year for electricity to your property and/or public transport.
- Electricity must be provided through electricity retailers sourcing electricity from Queensland Government owned generators.
- When salary packaging electricity bills, it can be in your name or that of a spouse or relative living with you.*
*Conditions apply.
How does it work? Example
Trevor, a Queensland Government employee entitled to in-house benefits, earns an annual salary of $45,000 per annum (excluding his employer's super contributions) and is considering salary packaging the maximum allowable amount of $1,333.33 towards his electricity bills.
By choosing to salary package and receive reimbursement for his electricity bills, Trevor could increase his net disposable salary by $420 per annum or $16 per fortnight.
EXAMPLE ONLY
| Item | Not Packaging | Packaging |
| Trevor's Annual Salary |
$45,000 |
$45,000 |
| Electricity Payments (packaged pre-tax) |
$0 |
-$1,333.33 |
| Fringe Benefits Tax |
$0 |
$0 |
| Trevor's Taxable Salary |
$45,000 |
$43,667 |
| Less tax & Medicare Levy |
-$7,725 |
-$7,305 |
| Trevor's net Cash Salary |
$37,275 |
$36,362 |
| Electricity Payments (paid post-tax) |
-$1,333.33 |
$0 |
| Trevor's Net Disposable Salary |
$35,942 |
$36,362 |
| ESTIMATED ANNUAL BENEFIT |
N/A |
$420 |
| ESTIMATED FORTNIGHTLY BENEFIT |
N/A |
$16 |
