Salary Packaging

Salary packaging, also known as salary sacrificing, is a financial arrangement where employees can receive part of their salary in the form of non-cash benefits instead of cash. This can include items like superannuation contributions, vehicle leasing, or even paying for work-related expenses. By doing so, employees may reduce their taxable income, potentially lowering their overall tax bill. This arrangement can help employees maximize their take-home pay and reduce living costs, but it’s important to understand the implications and eligibility criteria involved. Always consider consulting a financial advisor for personalized guidance.