Employees

Salary Packaging is a means to effectively restructure your income to reduce the overall amount of tax that is paid.  You can choose to receive salary as a combination of cash (salary) and benefits.  These benefits are either tax free or taxed at concessional rates, like that of a motor vehicle lease.  Prosperity works with you to maximise the advantages of salary packaging which in turn can enhance your lifestyle, reduce the amount of PAYG tax that you pay and take home more cash.

To find out the benefits that you are entitled to, call a Prosperity Salary Packaging consultant.

How does salary packaging work?

Working within the guidelines provided by the Australian Taxation Office (ATO), your employer may provide a portion of your salary as a fringe benefit (FB).  Your employer will advise you on their FB status and how much you are able to Salary Package.

This FB portion is exempt from Pay As You Go (PAYG) tax. Therefore, you gain more expendable funds than you would have otherwise received if the total salary were paid in cash and subject to PAYG tax. Salary packaging works as follows;

You decide on what benefits you want packaged (subject to limits set by your employer and the ATO). The value of the benefits will be deducted from your pre-tax base salary by your payroll department. Prosperity Salary Packaging then administers the payments on behalf of your employer and in accordance with your instructions.