Salary Sacrificing
The most common strategy in respect of salary sacrificing is that of sacrificing some of your pre-tax salary into your superannuation fund.
Employees may also be eligible to enter into an arrangement with their employer in order to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar value. A common salary packaging scenario is that of a car lease.
It is important to seek both financial and taxation advice in relation to salary sacrificing strategies because of the taxation implications including income tax and fringe benefits tax.
