What is Salary Packaging in Australia?
Salary packaging, or salary sacrificing, is an arrangement where employees agree to spend part of their pre-tax salary on approved benefits. Because these payments are made before income tax is deducted, employees reduce their taxable income and take home more.
Eligible expenses typically include:
- Groceries
- Utility bills
- Meal and entertainment
- Rent
- Fuel
With SalaryMax, your team can access all the benefits of salary packaging through a prepaid card that is easy to issue, track and manage, and fully aligned with ATO and FBT rules.
If your organisation falls under the not-for-profit or public health sector, see what’s possible on our NFP salary packaging page.
Salary Packaging benefits for employees and employers
Benefits for employees:
- More take-home pay in every pay cycle
- Tap and go, no reimbursement forms
- Instant access with digital cards
- Peace of mind knowing funds can only be spent on approved categories
Explore real-world uses like the Prepaid Fuel Card for essential travel and transport costs.
Benefits for employers:
- Offer a high-value benefit that boosts staff retention
- Reduce FBT and payroll tax where applicable
- Ensure compliance with automatic spend controls
- Save time with simplified admin and reporting
- Enhance brand awareness with customised card designs
- Combine with employee rewards programs for a seamless incentive experience
What expenses can be salary packaged?
The ATO allows specific benefits to be salary packaged, depending on your industry and eligibility. SalaryMax supports two core benefit categories:
- Living Expenses: groceries, fuel, household bills, rent
- Meal & Entertainment: restaurants, cafes, takeaway, catering
All SalaryMax cards are locked to ATO-compliant merchant categories, so funds are only spent as intended.
This is general information only. Please check with the ATO or a financial adviser for advice specific to your situation.
How to offer Salary Packaging to your team
Launching a salary packaging benefit doesn’t have to be difficult. Here’s what to expect with SalaryMax:
- Choose your card type: Digital, physical or email-delivered Mastercard
- Set up your program: Our team will guide you through a smooth setup process
- Customise your cards: Add your logo and messaging for a professional, branded experience
- Manage online: Load and track funds via our secure Client Portal
- Ongoing support: Our award-winning Australian-based support team is here to help
We’ve been Australia’s leading provider of prepaid card solutions since 2005. With SalaryMax, you get a secure, scalable salary packaging solution that meets ATO requirements and delivers real value to your team.
Let’s build a Salary Packaging Program that works
SalaryMax gives your organisation a smarter way to support staff, with a benefit that improves wellbeing and is easy to manage.
