Pay less tax
This means less of your salary goes to the taxman - and more of it ends up in your pocket.
Here's an example.
|Without salary packaging
||With salary packaging
|Ann earns $60,000 each year
||Kate earns $60,000 each year
|Her taxable income is $60,000 and she gets taxed $12,450.
||She salary packages $9,000 to her mortgage and $5000 in additional superannuation contributions
|Ann then pays $9000 to her mortgage and $5,000 in additional superannuation contributions
||Kate's taxable income is reduced to $45,809 and she then gets taxed $7,980
|Ann's take home pay is $33,550
||Kate's take home pay is $37,829
Ann and Kate earn the same amount, but because Kate uses her pre-tax salary to package her mortgage and additional superannuation contributions, it reduces her overall taxable income. So she pays $4,470 less in tax than Ann does. That's a big tax saving.
The best part is, you can spend your extra tax savings on whatever you choose.
Ready to find out more?