Salary packaging uses your gross income (your pre-tax earnings) for payments to help you maximise your money. And because you’re using your pre-tax earnings, salary packaging helps lower your taxable income and increases your take-home pay, allowing you to save more.
Salary packaging isn’t just limited to novated car leases, it can be applied to a range of other expenses and services too. However, these salary packaging options and inclusions are dependent on your employer.
In Australia, salary packaging can be applied to:
- Mortgage repayments
- Utility bills
- Meals and entertainment