Salary packaging is a way of enabling employees to receive part of their gross salary in a form other than take-home pay. Some gross salary is sacrificed in return for these non-cash employer provided benefits.

It’s not just a matter of what is provided, but how the benefit is provided that determines the tax implications. In many cases fringe benefits tax is either zero or charged at a rate less than Pay As You Go (PAYG) tax, thereby producing a savings in tax paid.

The valuation of any benefit depends on:

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

• PBIs
  
• Schools and rebatable employers
  
• Corporates
  

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