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
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
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
- 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.