Salary Packaging

Salary packaging is often used by employees to gain tax advantages by reducing their overall assessable income. Normally your employer pays your salary after tax has been deducted. You would then use this after-tax income to purchase or pay for items such as a motor vehicle, a laptop, rent/mortgage repayments and so on.

With salary packaging your employer will 'package' certain allowable benefits and pay for this with your pre-tax salary. You would then receive your salary in the form of post-tax salary and pre-tax benefits. The end result is that your gross income remains the same but less income tax is payable. Generally there are three categories that employees salary package. These are:

1. superannuation (salary sacrifice)
2. motor vehicles
3. other items (such as mortgages, personal loans and rent etc.)

Please see the links on the right-hand side for more information on these categories or contact us to make an appointment.

Most of our clients for salary packaging are government employees whose salary package is administered by Remuneration Services (Qld), which holds the Queensland Government contract.