What is salary packaging?
Salary packaging is a smart, easy way to restructure your income, giving you a number of cash-saving benefits. This is an Australian Tax Office-approved arrangement that benefits both employers and employees, providing a popular solution for making the most out of your income.
Under a salary packaging agreement, you can purchase items such as a car, a laptop or a mobile phone out of your pre-tax pay, instead of after tax. This means you can get a better deal on the item you want, lower your taxable income so you pay less tax, and end up with more money in the bank to play with.