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Salary Packaging FAQ

Salary packaging involves an agreement between you and your employer whereby you agree to forego (sacrifice) part of your salary and in return receive non-cash benefits of similar value. Benefits received in lieu of cash salary are not assessable under the PAYG system and are taxed in accordance with the Fringe Benefits Tax (FBT) Act. Put simply – you’ll be able to purchase certain things using your pre-tax salary. This means that you can reduce the amount of salary subject to income tax – so you pay less tax!

A number of benefits are either exempt from FBT or are treated concessionally for FBT purposes and may provide the employee with a tax advantage by taking the benefit rather than salary. The level of benefit is dependent upon the employee’s marginal tax rate.

Simplygreen Salary Packaging can tailor a salary package program to meet the individual needs of each organisation.

The number of items that can be salary packaged will ultimately depend on the tax status of the organisation. The following items are generally available to ALL employees irrespective of the tax status of their Employer:

  • Motor Vehicles (via a Novated Lease)
  • Motor Vehicles (via an Associate Lease)
  • iPads (and similar tablet devices)
  • In-house Benefits
  • Airport Lounge Membership
  • Mobile Phones & plans
  • Briefcases
  • Investment Loans
  • Additional Superannuation Contributions
  • Income Protection Insurance
  • Professional Subscriptions & Memberships
  • Financial Advice Fees
  • Work Related Software
  • Work Related Self Education
  • Laptops and personal organizers

Some organisations are eligible for an FBT rebate or exemption. In such instances, employees may be eligible to salary package additional items such as:

  • Private Health Insurance Premiums
  • General Living Expenses
  • Mortgage Repayments
  • Rental Repayments
  • Meal Entertainment
  • Personal Loan Repayments
  • School Fees