Financial Foundations

Salary Packaging

Salary packaging can be used by anyone who earns a wage and allows you to buy everyday items from your pre-tax salary, which means savings for you. The most common items salary packaged are vehicles, either company or leased, mobile phones and laptop computers or other smart devices. Different companies allow their employees to salary package different things but some of these can be difficult to set up and require the help of someone who specialises in salary packaging arrangements.

Salary sacrificing into your super is no different – albeit saving for retirement whilst minimising income tax. Although it may mean forgoing some of your money in the form of a reduction in your take-home pay, not only are you boosting your retirement savings, but you will save on tax. You can pay extra cash into your super from your pre-tax salary at the concessional 15% rate of tax; up to the relevant concessional cap limits. For most people, there is usually a considerable tax saving compared to their usual marginal tax rate.


Stephen Rees Primary School Teacher

"FFA has offered me advice and support in salary packaging, superannuation planning and investment opportunities. I am happy to be working with advisers who are sympathetic and understanding of the needs of those of us working in schools and whom are expert in the intricacies of the Emergency Services Superannuation Schemes (ESSS)."