Salary packaging is an alternative way of being paid your annual remuneration, to optimise the benefits you receive. Some of your gross salary is sacrificed in return for non-cash, employer provided benefits.

Careful selection between benefits and cash can enable you to increase your disposable income by a reduction in total taxes paid.

The key to developing a successful salary package is to have a clear view of your immediate and future personal requirements. Our specialist salary packaging consultants can help you to salpac your remuneration in the most effective way.

It’s not just a matter of what is provided, but how the benefit is provided that determines the tax implications.

The valuation of any benefit depends on:

1. the type of benefit;
2. how the benefit is provided; and
3. the fringe benefits tax status of the employer.


There are three main areas of salary packaging you may like to consider:

  1. Packaging a motor vehicle
    A car is provided by your employer, usually through a novated lease or an associate lease.

  2. Expense items
    General payments made as a benefit – including regular payments such as mortgage or health insurance.

  3. Superannuation
    The ability to package extra superannuation using pre-tax money provides future security at a time when contributions tax rates are being reduced by Government.

You need to discuss the availability of salary packaging for employees with your employer before contacting Salpac about a program.