How does salary packaging work?

Some employers offer salary packaging and will pay directly for items and services on your behalf rather than paying a cash salary. Common things that are salary packaged include cars, computers, child care and additional contributions into superannuation. Salary packaging can reduce your taxable income however some salary package items may be considered fringe benefits and your employer will have to pay fringe benefits tax.

It is worth asking your employer if salary packaging is available and discussing with your adviser or accountant if it makes sense to you.

More info: