Employee FAQS

FAQs - Salary Packaging for Employees

What is Salary Packaging?

Salary packaging combines both benefits and cash into a ‘package’. Instead of earning money, paying tax on it, and then spending it on items such as cars, computers and so on, you choose the things you want, and make a salary packaging arrangement. This arrangement means you agree to substitute some of your cash salary for the ‘non-cash benefits’ you choose.

Why Salary Package?

The aim of salary packaging is to increase your take-home salary. You still earn the same money, and you still get the benefits you want, but the amount of net salary should be greater.
For example, suppose someone includes a car in their salary package. Because the money for buying and running their car comes from pre-tax dollars, they would either take more money home overall, or get a better car for less money.
It can provide you with some attractive remuneration options, but your personal circumstances will determine how it affects you individually – That’s where PackagePlus comes in.
   

How do I start Salary Packaging with PackagePlus? 

The first step in accessing the fantastic savings available via PackagePlus is to make contact with us and have the most appropriate Salary Package modelled taking into account your individual circumstances, this is something that can’t be done on a form or web based calculator – and it’s the Package Plus Advantage. We ensure your package will be appropriate to your needs and maximise the savings available to you.

As we have a direct link with your employer’s payroll once we have created the best package for you we then set this in place and make pre-tax deductions from your employers payroll, we then account for your pre-tax funds , administer your payments / reimbursements on your behalf, and then provide real time data via our client login for you to track how your package is going.

If your employer does not offer Salary packaging you can refer your HR department to this site, or alternatively contact us and we will approach your employer directly and look to have packaging put in place with your employer.

Salary packaging combines both benefits and cash into a ‘package’. Instead of earning money, paying tax on it, and then spending it on items such as cars, computers and so on, you choose the things you want, and make a salary packaging arrangement. This arrangement means you agree to substitute some of your cash salary for the ‘non-cash benefits’ you choose.

How does it work?

The money you are currently paid (your remuneration) is set out in the relevant award for your classification and level. It can be paid as cash, or in the form of the non-cash salary packaged items offered by your employer.
When you participate in salary packaging, your employer deducts the salary packaging component from your salary, and then pays you the remaining cash salary component. You receive a pay slip for the salary component according to your employer’s normal procedures.
The salary-packaged component is paid to PackagePlus by your employer. We then use your funds to pay for the benefits you chose to salary package, or reimburse you, as instructed.
 

Salary packaging arrangements are legal. An arrangement must be prospective – meaning a package has to be set up in advance (not afterwards). And all the benefits must comply with all relevant taxation legislation and rulings provided under the Fringe Benefits Tax Assessments Act 1986