Salary packaging, also known as salary sacrifice, is an employer-employee arrangement that allows employees to package their salary into income and benefits. By doing so, employees can receive less income after tax in return for their employer paying for benefits out of their pre-tax salary. This can reduce their taxable income and result in paying less income tax, which can increase their take-home pay.

The benefits that can be included in a salary packaging arrangement depend on what the employer offers, but they can include things like a car, a phone, computers, child care, superannuation, aged care, and disability costs. Most employers will offer salary sacrifice for super to all employees, but may restrict who can package other benefits.

Its important to note that salary packaging is usually more effective for people on middle to high incomes, and its recommended to get professional tax advice to determine if its right for you. Salary packaging needs to be arranged before getting paid, and its not possible to package salary after it has been earned.

There are several companies in Australia that specialize in salary packaging, such as Smartsalary and Salary Packaging Australia.