Offering a rewarding salary packaging program is the core component of engagement and recruitment strategies for many organisations across Australia. But what does it take to administer such a program, and do you have the resources to make it work?
Partnering with a Smartgroup company to deliver your salary packaging program is an extremely cost-effective way to both reward your employees and take the pressure off your internal teams. We’ll work with you to build an effective program, and fully mange its administration, keeping you free to spend more time on other meaningful work.
Salary packaging is an Australian Tax Office (ATO) approved incentive that allows employees to increase their disposable income by paying for certain expenses from their pre-tax income, and at no cost to their employer.
The ATO determines the makeup of each salary packaging benefit and the employee groups entitled to receive them. In turn, organisations decide which benefits they’ll make available to their employees.
For employers, salary packaging is an extremely cost-effective way to help attract and retain high-calibre staff, effectively helping to reduce the cost of recruitment, lowering staff turnover and increasing employee satisfaction.
Also known as Public Benevolent Institutions (or PBIs), not-for-profit organisations such as research institutions, charities and public hospitals can offer staff these additional salary packaging benefits: