Salary sacrifice is an arrangement between an employee and employer where the employee agrees to receive less income before tax, and in return, the employer pays for certain benefits of similar value for the employee. This means that the employee pays less tax on their income. Salary sacrifice is also known as salary packaging or total remuneration packaging. The benefits that can be included in a salary sacrifice arrangement are not restricted, but they must form part of the employees remuneration. Common benefits include contributions to superannuation, cars, computers, phones, and laptops. Salary sacrificed super contributions under an effective salary sacrifice arrangement are considered employer contributions and are not fringe benefits if the contributions are made to a complying super fund. Salary sacrificing can reduce an employees taxable income, meaning they may pay less tax on their income. To have an effective salary sacrifice arrangement, there must be an agreement between the employer and employee, usually in writing, and the employee must not be able to access the sacrificed salary. It is important to seek financial advice before entering into a salary sacrifice arrangement.