Salary packaging is a common practice in Australia that allows employees to receive a portion of their salary as a combination of cash and other benefits, such as additional superannuation contributions, car leasing, or other fringe benefits. Here’s how it works:
It’s important for employees to carefully consider the benefits and potential drawbacks of salary packaging before entering into an agreement with their employer. Seeking professional advice can help ensure that the arrangement is suitable for their individual needs and circumstances.
Susan Sangroula is a Chartered Accountant and a Registered Tax Agent in Australia