Salary Packaging Living Expenses – Boost Take-home Pay
Looking for a simple way to help your team get more from their salary? Salary packaging living expenses, also known as salary sacrificing, is an ATO-approved way for eligible employees to use part of their pre-tax income on everyday essentials – like groceries, utilities and household items.
With the SalaryMax Living Expenses Card, powered by Mastercard, you can offer a benefit that genuinely supports financial wellbeing, reduces tax, and keeps things easy to manage.
What is Living Expenses Salary Packaging?
Living expenses salary packaging allows eligible employees to pay for approved everyday costs using income before it’s taxed. The result? A lower taxable salary and more money in their pocket each pay cycle.
This benefit is widely available across sectors like healthcare, education, not-for-profits, mining and government, where helping employees stretch their salary further really matters.
To make managing this benefit easy and compliant, we offer SalaryMax, a reloadable card which is powered by Mastercard and designed specifically for living expenses salary packaging. With built-in merchant category controls, it ensures funds are spent only on eligible items, helping employees and employers stay on track with ATO and FBT requirements.
Secure, flexible, and easy to use, SalaryMax takes the complexity out of salary packaging.
How it works – Prepaid Cards and ATO compliance
With SalaryMax, the process is designed to be seamless for everyone involved. Here’s how it works:
Your organisation sets up the program
Employees receive a SMS-delivered or physical SalaryMax Living Expenses Card
Pre-tax funds are added to the card based on your pay cycle
Cards can be used online or instore at eligible merchants
Merchant blocking ensures spending stays within ATO-approved categories
Export transaction reporting through our secure Client Portal
Every card is valid for 3 years and backed by Mastercard’s Zero Liability protection.
Benefits for employers and employees
Benefits for employers:
- Offer an additional benefit without increasing salaries
- Attract and retain great people with a stronger value proposition
- Reduce paperwork with real-time tracking and automation
- Reinforce your brand by adding your logo to the card
- Demonstrate care and support in a meaningful way
Benefits for employees:
- More take-home pay without a salary increase
- No reimbursement forms or claims, just tap and go
- Spend confidently at retailers Australia-wide
- Instant access via same-day digital delivery
- A practical way to improve financial wellbeing
You can also pair SalaryMax with employee rewards or cashback programs to offer even more value across your benefits program.
Eligible living expenses for Salary Packaging
To meet ATO guidelines, salary-packaged funds can only be spent on approved items. That’s why SalaryMax includes built-in merchant blocking to ensure compliance.
Common eligible expenses include:
Groceries and supermarket items
Utility bills (electricity, gas, water)
Household goods and personal care
School and education-related costs
Health and medical supplies
Clothing and everyday essentials
Note: This information is general and not intended as tax or financial advice. Please consult a financial advisor or refer to the ATO for specific eligibility details.
Offering Living Expenses Cards to employees
Rolling out living expenses salary packaging is easier than you think. Here’s how we support you:
1. Pick your format
Choose SMS-delivered or plastic prepaid SalaryMax Card
2. Set up your program
Supported by our award-winning Australia-based team
3. Customise your cards
With your logo
4. Top-up and manage funds
Via our secure, easy-to-use Client Portal
5. Monitor and report
Access real-time data and downloadable reports anytime
Our Australian-based team is here to help from start to finish – whether you’re launching for the first time or improving your current setup.
Why choose SalaryMax?
Rule-based merchant blocking ensures ATO-compliant spending
Reloadable with real-time tracking and audit-friendly reports
Same-day delivery via SMS. Post delivery available for physical cards.
Secure. Powered by Mastercard and covered by Mastercard Zero Liability Policy.
Cards are valid for 3 years and automatically renewed
Trusted provider with AFSL licensing, PCI compliance, and over 20 years of prepaid experience
SalaryMax is the perfect way to attract and retain employees.