As an employee, it is fair to use your salary in the discharge of your repayment obligation. So, if you are interested in finance, this might be a great option to do so.

What Is Salary Packaging?

Salary packaging is an arrangement between you and your employer. You agree that your employer pays for some of your pre-salary expenses to get a lesser salary. This is put in place to reduce the taxes on your salary.

How Does It Work?

The whole essence of salary packaging is so you can sort your expenses quickly and still have a sizable part of your salary, even after tax deductions.

It is an arrangement with your employer before you start working for the salary you want to package. So, you enter a written or oral agreement for your employer pay you lesser and use the remaining compensation to finance your expenses.  

After this, you receive the agreed salary, and your employer reaches out to us with your packaged salary to fund your expenses.  For detailed explanation about salary packaging, visit the Australian Taxation Office

If you are a middle or high-income earner, salary packaging is most efficient and beneficial to you.

The type of salary package available also depends on the industry you work in. For instance, if you are in the Healthcare and charity industry, there are for sixteen different salary packages. Also, if you are in the Corporate/ Government and Education, there are eleven other salary packaging options. Then, if you are in the Rebatable and Other industry, there are fourteen salary packaging options. 

What Items Are Available For You To Salary Package?

Generally, anything you would pay for with your salary is available for the salary package.  As such, you can take advantage of various items from computer gadgets to cars down to health insurance. 

Nonetheless, the type of benefits enjoyed under your salary packaging depends on your employer’s offers. There are three kinds of salary packaging benefits that your employer may offer you; fringe benefits, exempt benefits, and super.

Fringe Benefits

Fringe benefits are additions to compensation that companies give their employees. It is a different form of payment order than the employee’s salary. You can see for more details about fringe benefits. Under fringe benefits, you have the following services.
• Your health insurance
• Your loans for cars
• Your school fees or children’s fees
• Salary sacrifice
• Other benefits to motivate you, like payment for your gym
membership, free tickets to concerts, etc.

Exempt Benefits

These are benefits you enjoy from your employer that are not subject to fringe benefit taxes. They include:
• Your electronic devices
• The tools related to your work
• Protective clothing etc


Your super benefit is the percentage of money, usually a minimum of 9.5 % ( called super guarantee) that your employer pays on your behalf into a super account. This payment is a compulsory contribution of part of your ordinary salary. Provided you have a job (even if you are below eighteen), your employer should be paying your super benefits into your super account. The Australian Taxation Office says that it does not matter whether you are a casual or full-time work or even a temporary resident of Australia. For the instances where your employer is not allowed to contribute to your super accounts, you can see the website

Business Car Finance

If you are starting as a new business or have been in the industry for a while, you would need cars to soften the stress of movement and making work easy. This is also the same as your employee might need a car. Still, it’s not without its stress. For you to surmount this, you can put the salary packing option to use. In this case, you can provide the cars through a novated lease? Here at Loan Grading Research Australia, we provide everything you need to get proper car finance. Whether you want to get a car or a fleet, we are the right plug for you. Our offerings cut across different forms of business car finance.

Business Loans

Well, you can bypass this financial difficulty with a business loan. It is a financial option that allows you to obtain the purchase sum of the with no initial lump sum payment. You then commit to the repayment of the purchase price over a specific period in a particular manner through your salary.

Commercial Hire Purchase

Here, your lender purchases the car and give it out to you on a hire agreement. You then enjoy possession while you make repayment on a scheduled base. You can then use your salary packaging to discharge your obligation as a student here. Asides this, you only pay as agreed. Once you complete payment, the business car becomes yours.