Salary Packaging | Information for Staff

Salary Packaging (also sometimes referred to as salary sacrificing or total remuneration packaging) is an arrangement where you and your employer agree for you to receive less income before tax and in return your employer pays for certain benefits of similar value for you. This means you pay less tax on your income. 

Effectively, this means your rent payment, mortgage payments, car repayments and more can all become pre-tax deductions. These pre-tax deductions reduce your taxable income, and as such, reduce the amount of income tax you pay. 

Our recent endorsement from the Australian Tax Office means that Bila is now exempt from paying Fringe Benefits Tax. So, all staff, casual, part-time and full-time are now entitled to up to $15,900.00 tax-free earnings through salary packaging!

Deductible bills can include:

  • Rent payments
  • Mortgage repayments
  • Motor vehicle loan repayments
  • Credit card repayments
  • … and more!

So if you pay rent, a mortgage or a motor vehicle loan, you could be paying less tax!

If you have a HECS debt

If you have a HECS debt, you want to benefit from salary packaging, and you earn over $51,100 per year, you will need to ensure that our payroll team withholds additional tax to cover your compulsory HECS repayments.

Additional tax needs to be withheld because salary packaging increases disposable income, which affects your HECS repayment obligations.

This needs to occur for all employees who:

The additional tax withheld for your compulsory HECS repayment will appear as an after-tax deduction line on your pay slip, called ‘Extra tax deduction’. The amount withheld each pay run will depend on your annual income and the amount of HECS you owe, among other things.

Use this calculator to calculate your annual HECS repayment. Alternatively, you can calculate it using the table on the Study Assist website.

Once you have your annual repayment figure, divide it by the number of paydays remaining in the Fringe Benefits Tax year (1 April – 31 March). This will give you the after-tax deduction figure.

This is the figure you will need to enter on a signed Deduction Authority form which you submit to our payroll officers. The deduction authority form allows Bila to legally withhold additional tax throughout the year, ensuring you don't end up having to make a lump sum payment towards your HECS debt after submitting your tax return.

Final Considerations 

Please note: Information, advice or guidance provided on this webpage, including links to external resources, is general in nature and provided without reference to your employer's policies or your circumstances. It is not and should not be organisational or personal advice to you. Please contact your accountant, tax agent or legal adviser to determine how the information on this web page may apply to your circumstances. Alternatively, you can contact Benefit@bility with any queries about how the information on this web page may apply to your circumstances.

We acknowledge Aboriginal and/or Torres Strait Islander peoples and communities as the Traditional Custodians of the land we work on and pay our respects to Elders past, present and emerging. We recognise that their sovereignty was never ceded.

We are committed to cultivating inclusive environments for staff, consumers, and carers. We celebrate, value, and include people of all backgrounds, genders, sexualities, cultures, bodies, and abilities.

We acknowledge Aboriginal and/or Torres Strait Islander peoples and communities as the Traditional Custodians of the land we work on and pay our respects to Elders past, present and emerging. We recognise that their sovereignty was never ceded.

We are committed to cultivating inclusive environments for staff, consumers, and carers. We celebrate, value, and include people of all backgrounds, genders, sexualities, cultures, bodies, and abilities.