Employees

You don't have to earn a lot to benefit from salary packaging

You may have heard lots of people talking about salary packaging at work and even when they try to explain how it works, it might all seem quite complicated and perhaps even a little too good to be true. Does the tax department really allow you to pay for some everyday items using pre-tax income? Yes they do. It’s 100% true.

Fully approved by the Australian Tax Office, salary packaging lets you pay for certain everyday expenses like electricity, clothing, groceries, holiday accommodation, even cars through a novated lease, from your salary before tax is taken out.

This reduces your taxable income, meaning you could pay less tax and increase your disposable income. No matter whether you work full-time, part-time or casually – if you expect to pay income tax, you could be better off.