Salary Packaging

Salary packaging is non-cash incentive approved by the Australian Tax Office (ATO) that offers many benefits to employer organisations and their employees.

For employers, salary packaging has become an important component of their recruitment strategies, attracting and retaining high calibre staff while reducing the cost of recruitment, lowering staff turnover and increasing employee satisfaction.

For employees, salary packaging allows them to pay for certain goods and services from their pre-tax salary, which reduces their taxable income.

Salary packaging benefits and the employee groups entitled to them are determined by the ATO. In turn, organisations decide which benefits they’ll make available to their employees.

The most popular items salary packaged with Smartgroup include superannuation, laptops and motor vehicles.

Other packageable goods and service are:

Education and information

Professional memberships and subscriptions, newspapers, magazines and journals, and self-education

House and family

Childcare, relocation expenses, remote area housing, living away from home allowance, and home office expenses

Employee perks

Company products and services, and car parking

Transport and travel

Airline lounge membership, taxis, and development travel

Tools and equipment

Mobile phones, tablets, briefcases, calculators, computer software, work related equipment, and uniforms

Finance items

Income protection insurance, investment loans, and financial/taxation advice

Not-for-profit organisations (also known as Public Benevolent Institutions or PBIs) like research institutions, charities and public hospitals can offer staff these additional services for salary packaging:

  • Meal entertainment
  • Living expenses
  • Loan and mortgage repayments
  • Rent
  • Credit card repayment and other bills

Smartgroup offers a full suite of benefits administered by specialist teams and provides organisations with the choice of award-winning outsourced services or software solutions that enable the management of salary packaging in house.