Salary packaging is an easy way for eligible staff to increase their take home pay (net income) by paying for approved personal expenses using their gross salary (salary before tax is deducted). The tax saving for the employee is achieved as a result of their pre-tax salary being packaged in exchange for benefits which are exempt from FBT or benefits that attract a lower amount of FBT than the amount of PAYG tax applicable to salary.
Salary packaging allows you to use up to $9,009 of your pre-tax income each year towards an approved expense. This reduces your taxable income and therefore the amount of tax you pay.
The salary packaging year runs from 1 April to 31 March each year and staff can start salary packaging at any time throughout the year.
Prior to signing any salary packaging agreement, eligible employees are strongly advised to obtain independent financial advice relevant to their particular circumstances. The information for financial advisors page has been developed to assist financial advisors.
Contact the Employee Benefits Team on:
Phone: 8848 5111
- How salary packaging works
- Savings and benefits
- Eligibility and fees
- Living expenses card
- Before you begin
- Forms and getting started
- Salary packaging FAQ
- Salary packaging information for financial advisors