Australia's education system is estimated to be a $20 billion export industry. Department of Education pay scale rates have changed recently, keeping with inflation and the increased risks that teachers face daily with Covid-19. However, there are other ways that educators can get an increase in take-home pay: salary packaging and using a novated lease to get your next car.
How much do teachers earn in Australia?
Australia's average primary teacher salary is $89,593, with entry-level positions beginning at around $81,000. As of 1 January 2022, the department of education salary scales changed, including an increase to the minimum award rate. In addition, the new Teachers Award classification structure has five levels instead of the previous 12. View the 2022 award rates for Australian teachers.
How to save money as a teacher.
When starting as a teacher, it's common that you'll be straining and stretching to make your allocated budget cover the entire school year. What, on the surface, looks generous is quickly gone even if you're perpetually raiding the discount bin at Officeworks. So it's essential to document all the supplies you buy, including the ones from your own pocket that aren't reimbursed. The earlier you start doing this, the better chance you have to make a case for a budget increase.
But suppose you're upgrading your personal electronic equipment or need to get a new car. In that case, these can also become extreme saver moments through a salary sacrifice car deal — the ATO-approved way to save on tax that is possible for teaching and school staff who have permanency.
How can teachers salary sacrifice?
Salary packaging, sometimes called salary sacrifice, is the tax-effective way to get things like a car or personal electronics such as laptops, tablets and phones. So, if you're sick of waiting for the 'spinning wheel of doom' on the laptop you used in uni, maybe it's time to upgrade.
As for cars, this is sometimes called a "Novated Lease" — an agreement between you, the Department of Education and Easi to reduce your car costs. Think of it as all-inclusive car finance that pays for your choice of vehicle, and its running costs using your pre-tax salary. Education assistants, private school teachers, public school teachers and university staff can sign up to save with a Novated Lease from Easi.
Many new graduates miss out on salary packaging when they start their teaching career — but you don't need to wait or even ask the admin team. Instead, they will likely direct you to us to set up the arrangement.
All you have to do is reach out to Easi, pick your car, and we do the work to make it all happen with the Education Department. Educators at any pay level or stage of their career can reduce income tax, GST on the vehicle purchase price, plus fuel, tyres, insurance, registration and more.
What are the financial benefits of being a teacher?
Those working within the Department of Education enjoy competitive salaries, salary packaging, flexible working arrangements, attractive leave provisions and career development opportunities.
Education Department Salary Packaging arrangements are an unsung hero, because most other benefits are directly handed to you as an employee. Salary Packaging arrangements require a tiny amount of paperwork for massive rewards — 15 minutes that could save you thousands of dollars.
Let's imagine you're relocating to a regional area to take on a more senior position as a department head. Rather than waiting to claim all these expenses for moving in your annual tax return lodgement, with a Salary Packaging arrangement, your relocation costs — including stamp duty and real estate costs if you are selling or buying a new home — can be paid for using your pre-tax salary.
Maybe you need a new car (or a pre-owned one) that's more fuel-efficient. Rather than pay sales taxes from your already taxed income, you can get a tax break on any car under ten years old, and industry fleet discounts on new cars. The savings are usually in the thousands of dollars for teachers — use the Easi calculator to see.
Have a few questions for our experienced team?
Talk with an Easi salary packaging specialist about your situation and what we can do for you.
Gather some identifying documentation like your driver's licence, a water bill and a few payslips, and you could get the ball rolling in your DOTT time, or one afternoon after class. Applications are usually approved in 7-14 days.
No. Salary sacrifice is another name for salary packaging.
Whether it’s a ‘package’ or ‘sacrifice’, it’s an arrangement is the same for both between you and your employer.
Most general living and everyday expenses can be salary packaged, if approved by your employer. Mortgage and rental payments, personal loans, school fees or credit card repayments are also available to not for profit and health workers to be salary packaged.
Other expenses you can salary package are your superannuation, insurance, work equipment such as laptop or office setup, vehicle through a novated lease or child care fees. HECS and other education fees, mobile phone plans, car registration, groceries and utility bills can also be salary packaged.
