What is Salary Packaging / Salary Sacrifice?
Salary packaging is a phrase used to describe a process of converting your ordinary gross salary and wages into fringe benefits. This is achieved by you entering into a salary sacrifice agreement with your employer.
The salary sacrifice agreement is an agreement where you agree to forego part of your future entitlement to salary or wages and in return your employer provides you with non cash benefits (i.e. fringe benefits) to the same value you have agreed to forego.