What is Salary Packaging?
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.
Salary packaging can be a great way for organisations to add greater value for employees. Not only can it give employees the flexibility to decide how they wish to be remunerated, but it also may increases the value of their remuneration - without increasing the cost to the employer.
The Benefits of Salary Packaging
Salary Packaging allows employees to reduce their taxable income by paying for certain everyday expenses using tax-free dollars. This may result in tax savings, higher take-home pay, and access to additional benefits, making it a valuable tool for both employees and employers.
Salary Packaging and Novated Leasing
Salary Packaging is an Employer Provided Benefit
Some benefits are either exempt from FBT or receive concessional FBT treatment, allowing employees to gain a tax advantage by packaging these benefits instead of receiving the equivalent salary.
It's important to note that salary packaging is an employer-provided benefit, and the amount you can package - as well as the types of expenses you can include - largely depends on the type of organisation you work for.
Can I salary package any of the items shown below?
Expense Item | Commercial Business | Public Hospital | Public Benevolent Institution | Rebatable Organisation |
|---|---|---|---|---|
Car Lease Repayments and Running Costs (i.e. Novated Lease) |  | | | |
Laptop/iPad or similar portable electronic device | | | | |
Self Education Expenses | | | | |
Otherwise Deductible Items | | | | |
Mortgage Repayments | | | .svg) | |
Residential Rent | | | | |
Personal Loan Repayments | | | | |
Personal Credit Card Repayments | | | | |
Meal Entertainment | | | | |
Accommodation & Travel | | | |
Not for Profit
Commercial Business
Hospitals
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Salary Packaging FAQs
I am employed as a 'casual' for a Public Benevolent Institution (PBI) or Health Promotion Charity. Can I still salary package?
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Yes, casual employees working for a PBI or Health Promotion Charity may still be eligible for salary packaging. However, eligibility depends on your employer’s policies and whether your earnings are consistent enough to support regular pre-tax deductions. We recommend checking with your employer or reaching out to Simplygreen for confirmation.
I've started a new job and they use Simplygreen for Salary Packaging. How do I sign up?
Getting started is simple! Just follow these steps: 1. Check your eligibility – Your employer must offer salary packaging, and your employment type must qualify. 2. Register with Simplygreen – You can do this by visiting our website or contacting our customer support team. 3. Submit your application – Provide the required details, including your employment information and what expenses you'd like to package. 4. Simplygreen review – Once we review your application, we may contact you to confirm any missing details. Once our review is complete, we'll set everything up for you. 5. Start saving – Your salary packaging deductions will begin, and you’ll enjoy the tax benefits right away!
I have a salary packaging card. Do I need to spend all the money on the card before the 31st of March every year?
Yes, if you have a salary packaging card linked to tax-free capped benefits (such as General Living Expenses or Meal Entertainment), you should aim to use all the available balance before the 31st of March each year. This is because salary packaging benefits are based on the Fringe Benefits Tax (FBT) year, which runs from 1st April to 31st March. Any unused balance may not roll over, and you could lose access to those funds.
What happens if I leave my job or change employers?
Your salary packaging arrangement ends, and any outstanding amounts (e.g., car lease payments) may need to be settled or transferred if your new employer offers salary packaging.
Can I package a car through salary packaging?
Yes, this is called Novated Leasing. It lets you use pre-tax income to cover the costs of a car, including lease payments, fuel, and maintenance, potentially saving thousands.
How does salary packaging save me money?
By using pre-tax dollars for approved expenses, you reduce your taxable income, which means you pay less tax and take home more of your income.
Who is eligible for salary packaging?
Eligibility varies across commercial, government, health, and not-for-profit organisations. It's best to get in contact to discuss your scenario.
Discover the benefits of Salary Packaging for you
Discover the benefits of Salary Packaging & Novated Leasing for you
Take the next step - call us today or fill out the contact form to discover how Salary Packaging & Novated Leasing can benefit you!