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Salary Packaging

What is salary packaging and how does it work?

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How does salary packaging work?

As a Queensland Government employee, you may be eligible to restructure your salary in a way that is approved by the Australian Tax Office, which means you could pay less tax and have more money to spend on the things you want.

It enables you to buy a range of everyday items using your salary before it gets taxed. This lowers your overall taxable income as a result.

The diagram below illustrates the difference in the salary you may receive before and after salary packaging.


Once you choose which items you’d like to package and sign up with Smartsalary, we’ll open an account for you. We’ll calculate how much money needs to be deducted from each pay cycle before your salary is taxed. The rest of your salary is then taxed and paid into your bank account as normal. Depending on the items you package the funds sent to Smartsalary are then paid straight back to you or to a third party on your behalf.


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What can you package?

There are lots of great items that the Australian Tax Office (ATO) allows most employees to package, although the choice is dependent on the type of industry you work for, as well as the items your organisation has selected.

See the benefits your organisation offers and how much you could save.

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How much can you salary package?

Salary packages are as unique as you are. How much you can salary package (or salary sacrifice) will depend on the industry you work in.

If you work for Queensland Health, Queensland Ambulance Services, QGAir or Legal Aid Queensland, you will need to check your FBT Exemption Cap. A salary package cap is the maximum amount you can salary package.

Calculate how much you could save.

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Is salary packaging difficult to manage?

No. At Smartsalary, everything we do - from how we answer calls to the products and services we provide - is designed to make your life easy.

Our salary packages give you access to a range of services that can help you manage your account without you having to do the heavy lifting.

Gain access to real-time tracking, customer support where and when you need it online, over the phone, or at your place of work, first-call resolutions in most cases and fast and easy online claiming.

Salary packaging is easy with Smartsalary

Explore the benefits available to you

Select your packaging benefits

Save on everyday expenses

Ready to start salary packaging?


Salary packaging is only available to eligible employees of the Queensland Government as per the Standing Offer Arrangement QGP0065-21. The implications of salary packaging for you (including tax savings and impacts on benefits, surcharges, levies and/or other entitlements) will depend on your individual circumstances. The information in this publication has been prepared by Smartsalary Pty Ltd for general information purposes only, without taking into consideration any individual circumstances. Smartsalary Pty Ltd and the Queensland Government recommend that before acting on any information or entering into a salary packaging arrangement and/or a participation agreement with your employer, you should consider your objectives, financial situation and needs, and, take the appropriate legal, financial or other professional advice based upon your own particular circumstances. You should also read the Salary Packaging Participation Agreement and the relevant Queensland Government Salary Packaging Information Booklets and Fact Forms available via the Queensland Government Contracts Directory. The Queensland Government strongly recommends that you obtain independent financial advice prior to entering into, or changing the terms of, a salary packaging arrangement.