Salary sacrificing

Salary sacrificing, also referred to as ‘salary packaging’, describes an arrangement that allows salary to be taken as benefits before tax is paid. Employees benefit as they do not pay income tax on the amount of salary that is sacrificed. Employees benefit as they do not pay income tax on the amount of salary that is sacrificed. This information sheet outlines what is salary sacrificing, what factors impact on my ability to salary sacrifice, what problems can occur with FBT and salary sacrificing, what individual circumstances should I be aware of that can impact on my salary sacrificing, what are the costs of salary sacrificing, what happens if I stop work, and do all employers offer salary sacrificing.