How salary packaging works

Salary packaging reduces your gross salary by the value of the items you package along with any associated costs, which in this instance would be the employer’s share of the tax savings and the administration fee.

Your remaining salary (after costs are deducted) is paid to you in cash (credited to your bank account) and is subject to normal Pay-As-You-Go (PAYG) withholding tax.

NSW Health staff can salary package because the organisation is categorised as a Public Benevolent Institution by the Australian Taxation Office (ATO). Salary packaging is recognised by the ATO as a ‘fringe benefit’ which, because it is provided by NSW Health, is not liable for Fringe Benefits Tax (FBT).

Items that can be salary packaged

You can salary package the following items:

  • Home mortgage
  • Home rental
  • Credit cards
  • School fees
  • Child care (non-employer owned)
  • Tertiary education fees and loans
  • Motor vehicles repairs and running costs
  • Employee benefits card
  • Private health insurance
  • Insurance premiums
  • Personal loan
  • Private travel
  • Strata fees
  • Payment to utilities
  • Car parking
  • Novated lease (motor vehicle for private use)*

*Leasing companies used may differ between each health service. Contact SalaryPackagingPLUS for more information.

Employee Benefits overview

Further information

Book an appointment or contact the SalaryPackagingPLUS team:

Related information

Back to the top of this page