Salary Packaging
For Contractors
Get the freedom of being a contractor with the security of a regular pay day.
What is salary packaging?
Salary packaging is a smart, easy way to restructure your income, giving you a number of cash-saving benefits. This is an Australian Tax Office-approved arrangement that benefits both employers and employees, providing a popular solution for making the most out of your income.
Under a salary packaging agreement, you can purchase items such as a car, a laptop or a mobile phone out of your pre-tax pay, instead of after tax. This means you can get a better deal on the item you want, lower your taxable income so you pay less tax, and end up with more money in the bank to play with.
How does salary packaging work?
When you enter into a salary packaging agreement with your employer, your payroll officer will deduct an agreed amount of funds from your pre-tax pay each pay cycle to cover the cost of the item in instalments. By paying for these items before tax, you are lowering your taxable income, so you pay less tax, and at the end of each pay cycle, you could end up with more money to spend on the things you want.
Salary Packaging Calculator
The Salary packaging calculator will show you the benefit of salary packaging through PayMe.
