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New year, new you.
20 Jan 2025
Ready for a fresh financial start? The new year is the perfect time to take control of your finances, and salary packaging could be your ticket to a smarter, more secure future.
Imagine keeping more of your hard-earned money by using pre-tax income to cover everyday expenses, dining out and even big-ticket items, like a laptop or a new car. Salary packaging lets you do just that.
This isn’t just a smart strategy – it’s a simple one. Salary packaging reduces your taxable income, which means less tax and more money in your pocket. It’s a practical, Australian Tax Office (ATO)-approved way to set yourself up for success in 2025, helping you reach your financial goals faster and with less stress.
Salary packaging, also called salary sacrificing, is a benefit offered by your employer that lets you pay for some everyday goods and services from your pre-tax income.
It’s a simple way to reduce the amount of income tax you pay and maximise your take-home pay. With loads of expenses already paid for from your pre-tax income – from dining out to working out – you have more in your pocket to spend on everything else.
Sound too good to be true? It’s not. Salary packaging is approved by the ATO. Many employers offer it to their employees to help them manage their finances more effectively.
A better question might be what can’t you salary package?
The benefits you could salary package will depend on your employer, industry and whether you're a full-time, part-time or casual employee. Some of the benefits that could be on offer may include salary packaging your groceries, a long lunch with friends, mortgage payments, or even a brand-new car.
Here’s a quick guide to the benefits you may be able to salary package:
With salary packaging, eligible employees in the Not-for-profit, Disability and Aged Care sectors can pay for a huge range of everyday living expenses from their pre-tax income, up to $15,900 each Financial Benefit Tax (FBT) year.
For eligible Healthcare workers, mortgage or rent payments are just some of the everyday expenses you could salary package, up to a cap of $9,010 each FBT year.
Living expenses you may be able to salary package include:
By covering everyday essentials with pre-tax dollars, salary packaging makes it much easier to manage your budget.
If you work in Healthcare, Not-for-profit, Disability and Aged Care sectors, you may be able to dine out and save on tax by salary packaging your meal entertainment*. Whether that’s eggs benny at brunch or burger with your family or friends or even throwing a catered party, you can package up to $2,650 of meal entertainment expenses each FBT year – which could save you hundreds of dollars in income tax.
Meal entertainment expenses you may be able to salary package could include dining at a restaurant, café, pub, club, or fast food restaurant and even hiring professional caterers to prepare and serve food and drink.
With salary packaging, you can turn memorable moments with family and friends into smart financial savings. It’s a no-brainer.
Ready to upgrade your tech?
With salary packaging, you may be able to pay for the portable electronic devices (PEDs) you use for work – including laptops, tablets, phones and even wireless headphones for your Teams calls – from your pre-tax salary. You just need to use your PED for work more than 50% of the time.
Generally, you’re allowed to package one type of portable electronic device per FBT year.
Better yet? You may even be able to salary package an item you’ve already bought, as long as you bought it within the last 12 months.
With a novated lease, you can pay for your car and running costs – like fuel, maintenance, insurance and registration – using your pre-tax salary.
A novated lease is a salary packaging arrangement that bundles these expenses into a single, payment deducted from your pay each month.
You could lease a new or used car^, or even the car you already own. Your car could be for personal or work use and shared with other drivers.
Novated leasing is a simple, cost-effective way to own and run a car, potentially saving you thousands in tax.
Wondering if salary packaging is worth it? Absolutely.
Eligible employees could save thousands annually on their everyday expenses, eating out and entertainment. Corporate employees stand to benefit too: savings on electronic devices or cars can add up significantly over a year.
Still unsure? Here are five reasons why you should consider salary packaging:
Salary packaging is a smart way to make your income go further. When you use your pre-tax dollars to pay for eligible expenses, you could reduce your taxable income, leaving more in your pocket to spend or save on whatever you want.
Whether it’s rent, groceries, petrol, or even dining out, salary packaging means you could save on everyday essentials. Eligible expenses vary by industry, but the savings can add up, especially for those in Healthcare or Not-for-profit sectors.
Dreaming of a new car, laptop, or phone? Salary packaging could make these purchases more affordable. With options like novated leasing or portable electronic device benefits, you can spread the cost and save on tax.
Salary packaging isn’t a complicated or risky scheme – it’s an ATO-approved benefit offered through your employer. With clear guidelines and support, it’s a straightforward and smart way you could improve your financial health.
Start the new year with a clear financial plan. Salary packaging is a practical, easy-to-manage tool that helps you gain better control of your finances and achieve your goals – whatever they might be.
Whether you’re exploring salary packaging for the first time, or wanting to add new benefits, we make it simple. Thanks to our easy-to-use tools and dedicated support team, salary packaging is now simpler than ever.
Step 1: Check your eligibility
Step 2: Explore your benefits
Step 3: Apply now
In just a few simple steps, you can unlock the benefits of salary packaging and take more control of your financial health this year.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon your own particular circumstances. The availability of benefits is determined by your employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a SmartTM company.
^ To be able package a used or current car, it must be under 15 years old at the end of the lease with a minimum value of $5,000.