NFP Salary Packaging – Tax-effective benefits
For not-for-profit organisations, supporting staff with meaningful benefits while keeping costs low is always a balancing act. That’s where NFP salary packaging makes a real difference. Also known as salary sacrificing, it’s an ATO-approved way for eligible employees to pay for everyday expenses using their income before tax is taken out.
By reducing taxable income, salary packaging for not-for-profits helps employees take home more each pay cycle, without the need for salary increases. For employers, it’s a smart, cost-effective way to boost staff wellbeing, loyalty, and engagement.
What is NFP Salary Packaging?
NFP salary packaging is a tax-effective benefit that allows eligible employees to use part of their pre-tax salary for everyday expenses, helping to stretch their take-home pay further.
If you work in the not-for-profit, community services, education, government, or healthcare sectors, salary packaging gives you the opportunity to pay for essential costs like groceries, rent, bills, and meal entertainment using income before tax is applied.
To make the process easier and fully compliant, organisations can now use SalaryMax. This purpose-built salary packaging card simplifies how employees manage living expenses and meal and entertainment benefits. SalaryMax is powered by Mastercard, aligned with ATO requirements and easy to manage.
With SalaryMax, you can offer:
Living Expenses: groceries, fuel, utility bills and more
Meal and Entertainment: restaurants, cafes, and eligible catering
Built-in spend restrictions to help ensure compliance
Same-day digital card delivery for fast access
Full tracking and reporting via a secure Client Portal
How NFP Salary Packaging works with SalaryMax
SalaryMax is designed to make not-for-profit salary packaging simple, secure, and compliant.
We set you up: Your organisation is onboarded with tailored Living Expenses or Meal & Entertainment benefits.
Staff get their cards: Digital or physical SalaryMax cards are issued with pre-tax funds loaded.
Smart, compliant spending: Each card includes built-in ATO-approved spend restrictions.
Real-time tracking: Monitor activity through a secure Client Portal with full transparency.
Fast access: Same-day digital delivery options support quick rollouts across teams.
Advantages for NFPs and employees
Why more NFPs are choosing SalaryMax for salary packaging:
Benefits for employees:
- Spend with confidence - cards are preconfigured to only work at ATO-approved merchants
- No claims or reimbursements - just tap and go with a preloaded, compliant card
- More take-home pay each pay cycle by spending pre-tax dollars on everyday living and dining expenses
- Instant access with same-day digital card delivery via SMS or email
Benefits for NFP employers:
- Peace of mind knowing funds are spent exactly as intended
- No manual approvals or receipts to process
- Easy program setup with guided onboarding and built-in compliance controls
- Real-time tracking and reporting through a secure Client ortal
- Range of delivery methods including digital, SMS and physical cards
Notes:
We don’t provide tax or financial advice. Always refer to the ATO for the latest rules and eligibility criteria.
Eligible NFP Salary Packaging expenses
To comply with ATO and FBT guidelines, spending must fall into approved categories. Our prepaid cards are pre-configured with merchant category blocking so that funds are used as intended.
Common eligible expenses include:
Supermarket and grocery items
Utility bills like gas, electricity, water
Household goods and personal care
Clothing and essential items
Education-related expenses
Work-related memberships or subscriptions
Meal entertainment (where eligible and capped under ATO rules)
Note: This is general information only. Please refer to the ATO or consult a financial advisor to confirm eligibility and compliance for your organisation.
Ready to get started?
We’re here to help you build your not-for-profit salary packaging program to attract and retain great staff.