What is salary packaging?

With salary packaging, part of your salary is deducted and used to pay for everyday expenses. Your tax is then calculated on the remaining amount, meaning you pay less tax and have more of your salary available to you.

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What can I include?

The typical benefits most employees choose are:
- Everyday Purchases (mortgage, loan, school fees)
- Meal and Entertainment (dining out)
- Holiday Accommodation and Venue Hire
- Car Packaging (also known as a novated lease)

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How do I save?

Saving with salary packaging is easy, all you have to do is decide how much you want to have deducted from your salary each pay and we do the rest.

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How do I start salary packaging?

Setting up your salary packaging is easy, and we can help you with all your salary packaging needs. You can choose a mix of benefits to include in your salary packaging arrangement or, if you prefer, just choose one.

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Frequently Asked Questions

  • How will my pay change if I salary package?

    Each pay cycle, your employer will deduct a nominated amount from your salary before tax is applied and then send that money to us. We then use this money to pay for the items you have selected, such as your mortgage, rent or daily expenses. It’s still your money and you can still spend it on the things you need, but it’s taken out of your pay before your tax is calculated. The remainder of your salary is then taxed and paid to you as normal. As your salary package amount is taken before tax is applied, you are left with more to spend each pay cycle.



    The example below is based on a charity employee earning $50,000 and salary packaging $15,900 a year.

    Gross wages $1,923.08 per fortnight
    Pre-tax Salary packaging ($15,900/26) – $611.50
    New gross (before tax) $1,311.58
    Less tax (Includes 2% Medicare levy) – $142.43
    Net wages $1,169.15
    Money deducted for salary packaging + $611.50
    Total pay $1,780.65 per fortnight

    NOTE: Fees and charges have not been included in the above calculations.

    See how much you can save by using our Salary Packaging Calculator.

  • Will I benefit from salary packaging with my rebatable employer?

    If you work for a rebatable employer then in most instances you will only benefit from salary packaging general living expenses if you earn over $85,000 per year. However, you can benefit from salary packaging a car (also known as a novated lease) and paying for your vehicle and running costs from your pre-tax income, as the savings you make with a novated lease are linked to the value of the car rather than your salary.

    See how much you can save by using the Novated Leasing Calculator.

  • Is there a maximum amount I can salary package?

    Yes. The maximum amount you can contribute from your pre-tax salary depends on the type of employer you work for. This is known as the Fringe Benefits Tax (FBT) limit, cap or threshold. You will pay FBT on any amount over this limit.

    If you work for a qualifying organisation, such as a charity or Public Benevolent Institution (PBI), you can salary package up to $15,900 per year for everyday expenses such as your mortgage or rent, bills, shopping and petrol. If you work for a public or private not-for-profit hospital or the ambulance service, the annual limit is $9,010. As it’s deducted from your pre-tax salary, it significantly reduces your annual tax bill.