Salary Packaging is about paying for your personal expenses from your pre-tax salary. While most of these would result in a hefty FBT tax for your employer, there are some very specific exclusions and concessions. Planning your Salary Packaging is thus about exploring these concessions to gain an advantage in tax. These could be packaging your car, children's eduation, trips back home, Living Away from Home allowance, etc.
Salary sacrificing is a term used for contributing your pre-tax salary into your super. This could result in saving substantial tax and building your retirement nest.
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