Salary packaging allowed current serving members of the Australian Defence Force to restructure their renumeration package, allowing the purchase of a range of items or services (including financial advice) out of the pre-tax salary, rather than after tax salary which can result in a saving.
Salary packaging is when you arrange to receive less of your income after tax, in return for your employer paying for items and benefits out of your pre-tax salary, salary packaging can only be arranged before you are paid and you are unable to package salary that has already been paid to you.
To apply for salary packaging products, simple visit the Smart Salary website , enter the company code ADO, and click on ‘Department of Defence’, as shown below;
If you receive financial advice, you are eligible to salary package the fees into your pre-tax income. To apply, simply follow the appropriate links and ensure you have the following documentation ready:
- Personal Details;
- Payroll Details (ADF Salary Variation Advice);
- Bank Account Details;
- Supporting Benefits Documentation.
Further information on salary packaging can be accessed by visiting the following links:
Australian Taxation Office – Salary Sacrifice Arrangements for Employees
Money Smart – Salary Packaging