Salary sacrifice arrangements for employees

While we can give details about how fringe benefits tax (FBT) is calculated, we do not give financial advice about accepting or rejecting a package. You should seek financial advice before entering into a salary sacrifice arrangement.

What is a salary sacrifice arrangement?

A salary sacrifice arrangement is also commonly referred to as salary packaging or total remuneration packaging. It is an arrangement between an employer and an employee, where the employee agrees to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar value.