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.