The Australian Taxation Office

The ATO allows employees to restructure their income by receiving a portion of their salary as an approved benefit.  However any such salary packaging must be for future remuneration and cannot be implemented retrospectively.

Why do employees choose salary packaging / salary sacrificing?

As the employee you would salary package or salary sacrifice if you placed greater value on the benefit than its cost to your employer. Because such benefits are paid for from your pre-tax salary you can reduce the amount of taxable cash salary received.

What types of items can be Salary Packaged?

Depending on whether your employer is a non-profit organisation or not, will determine the kinds of benefits that can be provided, however here is a sample of the types of benefits most commonly ‘packaged’ for employees:

  • Superannuation (concessionally taxed)
  • Motor Vehicles
  • Running costs of motor vehicles
  • Car parking
  • Portable computers, portable printers & business computer software
  • Electronic diary and calculator
  • Mobile phones
  • Briefcase
  • Taxi travel to and from work
  • Gym membership (in-house)
  • Self education expenses
  • Home office expenses
  • Newspapers and periodicals
  • Professional memberships & subscriptions

Like to know more?

At Cameron Recruitment, we notice that on the whole most employees do not spend time researching or negotiating all the packaging items available to them.  We recommend you talk with your employer to see what salary packaging currently exists or can be accommodated according to your salary as well as talking to a financial planner or your accountant (if you use an external accountant) to obtain further advice.