Salary packaging, also known as salary sacrifice, is an Australian Tax Office-approved strategy that allows employees to forego a portion of their salary in exchange for benefits of a similar value. This not only aids in potentially reducing the taxable income but also ensures employees receive more value from their remuneration package.

By effectively utilising salary packaging, clients can enhance their overall remuneration structure and extract more value from their earnings. With our expert guidance at Northern Taxation & Accounting, clients can navigate the complexities of the Australian taxation system, ensuring both compliance and optimisation of their financial assets.

When an individual opts for salary packaging, a portion of their pre-tax salary is used for certain expenses or benefits. This includes motor vehicles, laptops, or even superannuation contributions. By directing pre-tax salary towards these items, one can effectively reduce their taxable income, potentially lowering the amount of tax paid overall.