Salary sacrifice

Under this process, employees forgo some of their pre-tax cash salary for non-cash benefits such as additional superannuation contributions and salary-packaged cars. Depending upon the particular packaged benefit, valuable tax benefits may arise. Salary-packaged superannuation contributions, for instance, are exempt from Fringe Benefits Tax (FBT) and salary-packaged cars can be concessionally valued for FBT. (See Fringe Benefits Tax)
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