Salary Packaging, commonly known as Salary Sacrifice, is an arrangement between an employee and their employer where the employee agrees to forego a portion of their income for ‘other benefits’ offered by the employer.

This portion of salary is ‘sacrificed’ in return for other benefits, such as payment of employee mortgage, rent or school fees.
The salary packaging benefit is paid in pre-tax dollars, reducing the employee taxable income. Reducing tax paid may result in increased take-home pay.

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