Salary Packaging, or Salary Sacrifice as it is also known, allows employees to change the structure of their remuneration package and take non-cash benefits in lieu of salary.
This has the benefit of providing you with the flexibility to tailor your entitlements to best suit your individual financial and personal needs, as well as taking advantage of legitimate taxation laws to maximise your benefits.
It simply allows employees to elect to take part of their salary as a noncash benefit rather than take home pay.
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.
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.
Items that can be salary packaged are dependant on your employer. Generally speaking salary and wages can be packaged into a variety of benefits including.
- Superannuation
- Car fringe benefits (novated lease), and
- Expense payment fringe benefits, such as school fees, child care costs or loan repayments
Green Light with the assistance of one of our Accredited Business associates can help you with this.
To find out more call Green Light on 1300 939 675 or email info@greenlightonline.com.au