The principal aim of Salary Packaging is to use part of your salary towards “non-cash benefits” such as your home mortgage, personal loan repayments, home rental payments, household living expenses or credit card repayments.
These benefits are deducted from your gross salary, reducing your taxable income which in turn reduces the amount of tax required to be paid and therfore increasing your take-home pay.
Salary Packaging is an “Australian Tax Office” approved method of restructuring your income.
How does Salary Packaging work to increase my take home pay ?
Salary packaging enables you to restructure your income so as to lower the gross taxable value amount and therefore pay less tax on a weekly, fortnightly or monthly basis as it is based on the reduced salary level.
The amount packaged is deducted from your gross wage leaving an amount to be taxed in accordance with ATO income tax rate and guidelines.
Then the packaged amount when added to your net remaining pay will show a significant increase to your take home pay.
For further information please contact us on:
Phone: 1800 932 394 or 03 8768 5777
