What is Salary Packaging or Salary Sacrificing?
Salary Packaging or Salary Sacrificing is an ATO-approved method of restructuring your salary.
What does that mean in easy terms?
For an easy explanation of Salary Packaging, watch the video here
Here are some examples of the potential tax saving structures:
So why does salary sacrifice work for you?
If you work for a not-for-profit organisation and are offered a salary-sacrificing package, you can use part of your gross income to pay for everyday living expenses. Salary Sacrificing also minimises your taxable income giving you more take-home pay.
In easy terms, you pay less tax and have more money in your back pocket. How can this be? Easy, your salary-sacrificed income is deducted first, and then you pay tax on the remaining income second. It's that easy.
