Salary Packaging - Salary Packaging in Australia

Salary Packaging in Australia

Items commonly salary packaged include:

  • vehicles (either a company car or through a novated lease)
  • mobile phones
  • laptop computers

Some companies also allow their employees to salary package other items, including household utility bills, although this is complicated and normally requires the assistance of a third-party company who specialise in salary packaging arrangements.

Charities and public & not for profit hospitals can do this most effectively as they are exempt from fringe benefits tax up to a certain limit per employee (currently $9095 for public hospitals)

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.

Read more about this topic:  Salary Packaging

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