What can be salary packaged?
The items that can typically be salary packaged fall into a number of broad categories. Eligibility for each category depends on your employer's policy and, in some cases, the industry or sector you work in.
Vehicles: novated leasing
A novated lease is the most widely-used salary packaging arrangement and is available to most PAYG employees whose employer participates in a novated leasing program. It allows you to package a car and its running costs, including fuel or charging, insurance, registration, servicing and tyres, partly from your pre-tax salary.
The vehicle is registered in your name and is entirely yours for private use. Eligible electric vehicles also qualify for the government's Fringe Benefits Tax exemption, which can significantly increase the tax benefit compared to a petrol car.
Work-related technology
Portable electronic devices used primarily for work purposes can often be salary packaged as an FBT-exempt benefit, potentially including laptops, tablets and smartphones. The ATO generally permits one device of each type per FBT year, provided the device is used for work.
The FBT exemption for work-related devices means there’s no offsetting FBT cost for you or your employer. GST savings could also apply on the purchase.
Professional development and memberships
Costs directly connected to your current employment can often be packaged as a work-related expense. This could include industry body membership fees, relevant professional association subscriptions, and self-education or training costs related to your current role.
Everyday living expenses (for eligible workers)
Employees working for public benevolent institutions (PBIs), registered charities, not-for-profit organisations and certain healthcare employers may be able to package everyday living expenses including mortgage or rent repayments, utility bills, council rates, credit card repayments and other household expenses.
The annual cap for this type of packaging varies depending on your sector. Eligible employees can package a certain amount tax-free up to a specified annual limit per FBT year. Some providers offer a prepaid salary packaging card that eligible employees can load with pre-tax funds and use for everyday purchases, so you don’t need to worry about individual reimbursement claims.
NOTE: If you work in the NFP, charity, healthcare or PBI sector, it’s worth confirming what salary packaging is available through your employer.
Meal entertainment benefits
Employees working for public benevolent institutions (PBIs), registered charities, not-for-profit organisations and certain healthcare employers may be able to salary package meal entertainment expenses, including restaurant dining and accommodation, subject to an annual cap.
Other work-related expenses
Depending on your employer's salary packaging policy, other work-related expenses might also be packageable. Examples include workplace car parking, airline lounge memberships , home office expenses or other equipment used in the course of employment. The range of items eligible for packaging is determined by ATO guidelines and your employer's approved program.
Does salary packaging apply to me?
The benefits available to you depend on three things: whether your employer has a salary packaging program in place, your salary level (since packaging affects your taxable income differently at different income levels), and the industry or sector you work in.
If you’re not sure whether salary packaging is available to you, or what your employer's program includes, get in touch with our salary packing experts, or speak to your employer's HR or payroll team.
Get in touch
Fill in your details and a FleetPartners salary packaging specialist will be in touch to discuss what options might be available to you.
We'll be in touch within one business day to discuss your needs
We'll look at what salary packaging may be available
We'll walk you through the options and how to get started
Contact our team
Privacy Statement
By providing your details, you consent to us contacting you about our products and services (including comprehensive motor vehicle insurance). FleetPartners Privacy Policy contains information about how you can access and correct your personal information, how to make a complaint, and how we deal with complaints.
Information on this page is general in nature and does not constitute financial or tax advice. The benefits available to you depend on your personal circumstances, your employer's policy, your salary level and your industry. Independent financial and tax advice should be sought before entering into any salary packaging arrangement. Subject to ATO guidelines as at 01/07/265. Terms, conditions and eligibility criteria apply.