workplace benefits with ease

What is Salary Packaging?

Salary Packaging

(or Salary Sacrifice) is an ATO-approved method of reducing the amount of income tax a person pays each pay cycle. It lowers the person’s taxable earnings so they pay less tax and have more money in their take-home pay.
With

Salary Packaging

, your employer pays you the same salary, but instead of paying your living expenses after you’ve been taxed(post-tax), you pay for selected expenses before the tax is taken out (pre-tax). This lowers your taxable income and helps you pay less tax.
The types of benefits and the amount you can salary package depends on your employer exemptions status and the industry you work in.
Public Hospitals
  • Annual Living Expense Cap $9,010
  • Annual Meals or Accommodation Cap
  • Voluntary Super Contributions
    (Caps apply)
PBI-Charities
  • Annual Living Expense Cap $15,900
  • Annual Meals or Accommodation Cap $2,649
  • Voluntary Super Contributions
    (Caps apply)

How does it work?

Salary Packaging
Salary Packaging is simple. It just means your wages arrive in two parts. The first part you package toward standard living expenses which are then reimbursed to you from pre-tax wages. This is your fringe benefit payment made by Eziway. The second part of your salary is processed by the your Organisation’s payroll department. Usually this means your normal salary and packaged portions arrive in the bank on consecutive days.
An example: Bill earns $60,000 per year working for a charitable organisation that allows him to sacrifice $15,900 a year (or the first $611.53 per fortnight) towards his fixed mortgage repayments. When the employer deducts the fixed capped amount of $611.53 per fortnight in pre-tax form, it effectively reduces Bill’s tax by $210 a fortnight or $5,485 annually*. Please note that Bill’s ability to salary package is dependent on the industry he works in and the package his employer provides.
Contact us to discuss your eligibility to Salary Package and how much you can save given your individual circumstances.
*These tax savings are an estimate only. Each person’s circumstance will determine how much tax they can save.
What can I package as an employee of a not-for-profit employer?
  • Mortgage repayments
  • Rent payments
  • Credit Card repayments
  • Personal loan repayments
  • The purchase price and running expense of new and near-new cars
  • Venue Hire
  • Meal Entertainment
  • Laptops and smartphones
  • Various Some costs of living in remote areas