We get thousands of visits each month to this page on our website, most people have heard of the term "Salary Packaging" but what does it actually mean and more importantly, how can you benefit from salary packaging.

First things first, what is salary packaging?

Salary Packaging is the term used to explain the process of buying goods and services out of your salary before the tax is taken out. What this effectively means is that your salary minus any salary packaging payments equals your taxable income. For example, if you were earning $1000 a week gross (before tax) and you had a salary packaged car with payments of $200 per week, you would only pay tax on the difference, in this example, you would pay tax on $800 as opposed to $1000.

This means that you will be able to make large savings on items that can be salary packaged, even if it is on sale, you will get even further savings by salary packaging.

Often in Australia you will become subject to fringe benefits tax which is a tax applied by the ATO although some things you are able to purchase are exempt from having to pay Fringe Benefits Tax.

If you feel this doesn't explain salary packaging and you would like further information, please use the enquiry on the right hand side or contact us on 1300 123 123 to speak with an expert salary packaging consultant.