What are the benefits of Salary Packaging?

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.