There are some exciting changes coming to how you can access your Salary Packaging and Meal Entertainment benefits.
Hood Sweeney Securities Life Risk Specialist Mark Mullins* says the Maxxia Wallet card can help you spend and save smarter. The new card will offer discounts at retailers and restaurants, including every day, entertainment and wellbeing offers with the Smarter Savings program.
Employees of public and not for profit hospitals are able to use pre-tax income on Meal Entertainment expenses and Salary Packaging.
Workers can set aside up to $9,010 of their pre-tax salary each FBT year (1 April-31 March) for items such as rent, mortgage repayments, groceries and utility bills.
Meal Entertainment allows hospital employees to pay for their restaurant meals with pre-tax dollars, up to $2,550. Like living expenses, they just need to set aside a nominated amount each pay period, this is currently added to a separate meal entertainment card.
Following regulatory changes by the Reserve Bank of Australia (RBA) Maxxia identified a way to increase functionality and streamline processes for their customers.
They have introduced a new payment card, the Maxxia Wallet, to house both benefits in one place.
The card has an integrated chip to identify transactions as Meal Entertainment or Salary Packaging, if a card doesn’t have sufficient funds for a transaction it will determine if other linked benefits can be used.
The card also utilises relevant technology with payWave capabilities and access to real time account information.
There’s no need for you to do anything to order your Maxxia card, unless the balance exceeds $5,000, it will be sent in the post ready to be activated online.
You can log onto your Maxxia Online to ensure that your postal address, name and mobile phone number are current, if you don’t have an account sign up at securemaxxia.com.au.
Funds from your current ANZ benefits card can be used until 1 July 2017, after this date the card will be automatically deactivated and the balance transferred to your new Maxxia Wallet.
Spouses and family members can still have access to additional cards and they will be replaced as part of the transition program.
A charge will be applied to cover the card program at $4.40 per benefit/per month this will be salary packaged and deductions will be increased to cover the charge. This will increase the total amount you are salary packaging and count towards the applicable limits.
Maxxia will begin paying money to your Wallet from your first payday after 12 June, the card will be available from late-May.
For more information about meal entertainment salary sacrificing Mark Mullins* at Hood Sweeney on 1300 764 200.
*Mark Mullins is an Authorised Representative (323919) of Hood Sweeney Securities AFSL No. 220897
Information contained in this article is of a general nature only and does not constitute personal financial or taxation advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information with regards to your objectives, financial situation and needs. It is recommended specific financial advice be sought in relation to matters referred.
The information in this document has been derived from sources we believed to be reliable and accurate. Subject to law, neither Hood Sweeney Accounting & Business Advisory ABN 30 007 696 595, AFS License No. 485569 or Hood Sweeney Securities ABN 40 081 455 165, AFS License No. 220897, nor their directors, employees, agents, representatives or Authorised Representatives gives any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this article.