Salary Packaging Arrangements
Salary Packaging (also known as Salary Sacrifice) is a smart, easy way to structure your income. It is an arrangement between you and your employer (us) where you pay for some items or services straight from your pre-tax salary.
The typical items that many people include in their salary packaging arrangements are;
- Vehicle Lease repayments
- Vehicle running costs (if the vehicle is leased)
- Income Protection Insurance
- Mobile phone
- Internet
- Laptops
- Computer Software
- Additional Superannuation payments
- Tools of the trade
- Safety Equipment
- Training
Under a salary packaging agreement these items are taken out of your pay before tax is applied, thereby reducing the total amount of your income subject to tax. This helps to reduce your taxable income giving you more money in your pocket.