Salary packaging example
Let's take a look at an example that shows how salary packaging could save you money in real cash amounts.
Andrew earns $80,000. He salary packages $15,000 towards car repayments using a combination of pre and post tax funds, and $9,000 in additional super contributions.
This is deducted from Andrew's taxable salary, which means that he pays less tax.
Andrew pays $13,529 in tax,* so he is left with $42,966.
Meanwhile, Jack also earns $80,000 but doesn't package any of his expenses.
Jack pays $18,900 in tax.* He pays $15,000 in car repayments and $9,000 in super from his after-tax salary. This leaves Jack with a take home salary of $37,100
Andrew takes home an extra $5,866 than Jack each year just by salary packaging some of his everyday expenses.
* Includes PAYG, Medicare Levy and Flood Disaster Levy (where applicable)
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