Here’s an example of how it works for Jenny – a nurse who earns $21 an hour and works 36 hours a week. Her fortnightly pay is $1,512 which means that each year she earns $39,312.

Before she started salary packaging, $197 was deducted from her pay each fortnight for tax and medicare. She uses this pay to cover here living expenses.

Without

Salary Packaging

With

Salary Packaging

Jenny’s fortnightly pay

1,512

1,512

Salary packaging to an Everyday Purchases card per fortnight

550

Jenny’s taxable salary

1,512

962

Tax and Medicare

197

65

Salary after tax

1,315

897

Money added to Everyday Purchases card

550

Total money available

765

897

Extra money with salary packaging per year

3,432

With salary packaging, Jenny decides to package $550 a fortnight. Her pay is reduced to $9,762.

her mortgage repayment is still made, the only difference is that it’s now paid from her pre-tax salary. And the payment is made by Salary Solutions.

That’s an extra $3,432 a year in Jenny’s pocket! Even with the fees Jenny pays for salary packaging, she will still have well over $3,000 more to spend each year from her salary packaging account.