Case Study Comparison | Prosperity Payrolls | Australia

The example below assumes a contract rate of $100 per hour and business expenses of $500 per month. By packaging your income through Prosperity Payrolls, you add $204.90 to your monthly after-tax pay – this represents a net benefit to you of $2,459 per year.

Without Packaging

With no salary packaging and no ability to offset business-related expenses, you will be taxed on your full income less the compulsory superannuation contribution of 9.5%:

Gross income (160 hours @ $100 per hour)$16,000.00
Deduct super @ 9.5%-$1,388.13
Deduct income tax on $14,611-$4,689.00
Less PIPL insurance-$95.00
Net Monthly Income$9,827.87

With Prosperity Payrolls Packaging

By using Prosperity Payrolls’ salary packaging, your net monthly income increases:

Gross Income less $1.55 fee (160 hours @ $98.45 per hour)$15,752.00
Deduct Expenses-$500.00
Deduct super @ 9.5%-$1,323.23
Deduct Income Tax on $13,928-$4,396.00
Net Monthly Pay$9,532.77
Add Tax-free Expenses$500.00
Net Monthly Packaged income$10,032.77