As an employee you may be able to salary package part of your income.
Salary packaging or salary sacrificing is an arrangement between you and your employer. It's where you agree to forego part of your future pay in return for us as your employer providing benefits of a similar value. This allows us to deduct pre-tax income from your pay and use it to pay for your chosen benefits.
By reducing your pre-tax income, you reduce the amount of income tax you pay.
Most of our employees can participate in salary packaging, but it depends on the type of employee you are.
Who can participate in salary packaging
The ability to get the benefits of salary packaging isn’t a guaranteed part of your employment. However, you may be able to participate if you’re any of the following type of employees:
- permanent full or part time
- temporary full or part time
- long-term casual.
If you’re a long-term casual employee both of the following must apply:
- we’ve employed you on a regular basis for 12 months or more
- there’s a reasonable expectation that your employment will be ongoing after 12 months.
While you may be able to participate in salary packaging, your actual working arrangements will determine if you can access the Fringe Benefits Tax exemption cap to obtain a higher level of tax savings.
How it works
Salary packaging or sacrificing allows us to deduct some of your pre-tax salary and use it to pay for your chose benefit items such as:
- superannuation contributions
- professional association fees
- rent or mortgage repayments
- motor vehicle operating expenses
- novated car leases
- travel expenses.
The types of items that will be financially viable for you to salary package will depend on if you can access the FBT exemption cap.
If you’ve previously salary packaged in an interstate health jurisdiction or a non-profit employer, you may find our salary packaging rules are different.
Where to get more information
Before entering into a salary packaging agreement, you should consider seeking independent financial advice.
We use RemServ and SmartSalary to manage employees' salary packaging arrangements. You can contact them on the following phone numbers:
- RemServ on 1300 30 40 10
- SmartSalary on 1300 218 598.