October 18, 2018

Why would I want to Salary Package?

The main reason why employees salary package is to reduce the total amount of tax that is paid on their salary. This occurs because the non-cash fringe benefits (e.g.Peter’s mortgage payments in example) are provided tax free.

Note: in most cases you will only receive fringe benefits tax free if your Employer is endorsed by the ATO as a Public Benevolent Institutions, Health Promotion Charity or if you are employed by a Public and non-profit hospital or a Public ambulance service.

Please click the following link to view a Salary Packaging Worked Example.