Many fringe benefits can be included in your Salary Package if your employer agrees.

The main advantages to an employees are to: increase their net disposable income; reduce their tax liabilities and to increase their long term investments through superannuation.


potential reduction in workers compensation, public liability and payroll tax.


However you must be wary to avoid over packaging, where you do not have enough take home pay to youre your general living expenses. They include: 1.


To be effective for tax purposes, the package must be agreed before the work commences. administrative costs tax deductible off your package.


Generally, your employer or outsourced salary packaging manager, provides an estimate to the employee based on the options they have selected in their salary package. Therefore where you have reached the end of a salary sacrifice arrangement accounting period, or Cosmetic Containers Manufacturers where you have terminated, then the remaining cash earmarked to be used to pay the benefit(s) must be taken as taxable salary and superannuation (where applicable). Once this has been accepted by the employee, the salary packaging manager sets up the salary package and payroll with the individuals employer. Some common benefits include motor vehicles, allowances, reimbursements, extra superannuation within government limits, otherwise deductible items and exempt benefits. It often involves the employee forgoing a part of their future entitlement to salary or wages in return for the employer providing them with benefits with the same total cost to the employer, but providing better value to the employee. Therefore, the employer can offer packaging to their employees,. able to be outsourced with costs met by the employee; 5. Without the hassle of administration and calculations, whilst reducing internal costs.


For each pay cycle the employer forwards the total cost of the employees employment to the salary packaging manager, who then calculates the package based on the options selected, and pays the monies either idirectly into the employees bank account or to benefit suppliers on the employees behalf. improved cash flow as less pressure on bonuses or wage increase; 3. reduced administrative burden; and 4. Salary packaged benefits in Australia generally attract Fringe Benefits Tax within the Australian taxation system, with a few exceptions - some benefits are Fringe Benefits Tax exempt, including mobile phones and laptop computers. increased disposable income; 2.


Benefits for the Employees include: 1. The timing of the payment of benefits may not however coincide with the payroll period. Good staff retention; 2. The sacrificed salary must be permanently forgone for the period of the arrangement. The individual takes home more money and receives tax effective salary packaging.Salary Packaging is defined as the process of an employee specifying the components of their total remuneration, which may be a combination of cash salary or benefits in accordance with a menu of items allowed by an employer. pay less income tax; 3.


Salary Packages with a rich selection of benefits to an employee also provide many benefits to Employers.


Charities and public & not for profit hospitals have legislative advantages in the items that can be paid as a benefit, as they are exempt from fringe benefits tax up to a certain limit per employee for these organisations