Salary packaging is an arrangement where the employee forgoes a part of their salary in return for a benefit of a similar nature. The employee’s cash salary is reduced or ‘sacrificed’ by the cost of the benefit and any associated tax and administrative costs.
For further details on salary packaging, read the salary packaging guideline (see related resources).
We recommend seeking financial advice from a licensed professional to determine if it is right for you before entering a salary packaging arrangement.
SmartSalary administers salary packaging services for MOP(S) Act employees.
Eligibility for salary packaging
Ongoing MOP(S) Act employees may access salary packaging arrangements for items listed in the benefits profile on the SmartSalary website.
Non-ongoing employees whose employment agreement is for a period of three months or longer, may only salary package additional employer superannuation contributions.
Other non-ongoing employees and casual employees do not have access to salary packaging.
Salary packaging items
Commonly salary packaged items include:
- motor vehicles
- portable electronic devices such as notebooks, laptops or tablets, portable printers, mobile phones and navigation systems
- airline lounge memberships
- additional employer superannuation contributions (these can be made to the Public Sector Superannuation accumulation plan (PSSap) but not to the Commonwealth Superannuation Scheme (CSS) or the Public Sector Superannuation Scheme (PSS)).
Items that attract the full rate of Fringe Benefit Tax (FBT) may not be included in salary packaging. Examples of such items are mortgage repayments, non-work-based childcare and desktop computers.
How to access salary packaging
Please ensure you read the salary packing guideline (see related resources) and get advice from a financial professional before accessing salary packaging.
To access salary packaging, you will need to contact SmartSalary and enter your employer as ‘Members of Parliament Staff’.
You will also need to complete a Salary Packaging Deed. Copies of the Deed and other relevant documents can be obtained by contacting SmartSalary.
The purpose of the Deed is to indemnify the Department of Finance from any liabilities it may incur by allowing the employee to salary package. A representative from the Department will sign the deed on behalf of the Commonwealth.
Employees must complete and sign all relevant forms then forward them to the Department of Finance at Mailbox-MOPSSalaryPackaging@finance.gov.au. The Department will then forward the signed documents to SmartSalary.
Employees should keep the original of the Deed for their own records.