Salary packaging is the easiest way to increase your income without working longer hours.
Salary packaging is the ATO approved way for employees to purchase goods and services with tax-free dollars. Those eligible to salary package can significantly increase their take home pay and pay less income tax.
Who is eligible to salary package?
Not everyone can salary package, it’s a privilege available to employees of organisations with Public Benevolent Institution (PBI) or Health Promotion Charity (HPC) status as granted by the ATO.
If you work for a PBI or HPC employer, you are able to salary package. This means income tax is not paid on a portion of your salary and you are financially better off. Note too that the tax-free threshold still applies to salary packaging employees.
How does salary packaging work?
Read our case study to find out how Kate gained a 15% pay increase by salary packaging.
Each pay period, a portion of your pay is directed to your CBB Salary Packaging account, completely free of income tax.
A popular option is to have your tax-free dollars loaded onto a CBB Salary Packaging Card each fortnight. This card operates just like a debit card and allows you to purchase goods and services anywhere Visa is accepted. Imagine how much you could save buying groceries, petrol and other household purchases with tax-free dollars…
It may also be possible to have funds paid to a regular expense incurred by you. Examples of expenses that can be paid with tax-free dollars include mortgages, rent, personal loans and school fees. In fact, just about any debt we are able to see proof of (which has an electronic payment facility) can be paid with salary packaged dollars.