It’s Never Too Late to Start Salary Packaging

An employee smiling on her office desk starting a salary package with Maxxia before 1 April.

Did you know that if your employer offers salary packaging, you can start at any point during the FBT year rather than waiting until 1 April? While there may be fewer pay cycles remaining before 31 March, you could still make the most of your available benefits and potential tax savings by packaging eligible expenses.

Whether you’ve recently started a new job or simply haven’t set up your salary packaging account yet, there’s always time to start making the most of your available salary packaging benefits.

And remember, you don’t need to use your full salary packaging cap to benefit. Salary packaging is flexible, allowing you to package an amount that suits your circumstances, up to your eligible limit.

Can you start salary packaging mid-year?

Yes. Eligible employees can start salary packaging at any point during the FBT year.

Salary packaging works by using a portion of your before-tax income to pay for eligible expenses. This could reduce your taxable income and help you keep more of what you earn.

How salary packaging caps work throughout the FBT year

If you’re eligible to salary package up to $9,010 as a healthcare employee, or up to $15,900 as a not-for-profit employee, these caps are typically spread across the full FBT year.

Employees who are paid fortnightly generally divide their available cap across 26 pays, or 25 pays when using a Maxxia Wallet.

Example: Fortnightly salary packaging amounts

Cap

Over 26 Pays

Over 25 Pays (Maxxia Wallet)

$9,010 (Healthcare Employee)

$346.54

$360.40

$15,900 (Not-for-Profit Employee)

$611.54

$636.00

$2,650 (Meal Entertainment)

$101.92

$106.00

By spreading your salary packaging cap evenly throughout the year, you can make the most of your available benefits while maintaining a consistent deduction from each pay.

Starting late in the FBT year

If you begin salary packaging part-way through the FBT year, you may be able to use some or all of your available cap by spreading it across the remaining pay cycles before 31 March.

This means you may still have an opportunity to maximise your benefits, even if there are only a limited number of pay cycles left in the year.

Example: Maximising your cap over 13 remaining pays

Cap

Over 13 Pays*

$9,010 (Healthcare Employee)

$693.07

$15,900 (Not-for-Profit Employee)

$1,223.07

$2,650 (Meal Entertainment)

$203.85

^{*The amount you nominated will depend on your individual circumstances, available cap and employer arrangements}

If you’re a casual employee, many employers also allow you to nominate a percentage of your pay to salary package, up to your eligible cap limit.

Why it may be better to start salary packaging now rather than wait

Waiting until the next FBT year may mean missing out on potential tax savings you could access today. By starting now, you may still be able to take advantage of your available salary packaging cap and put more of your money towards the expenses that matter most.

Even if you’re not planning to use your full cap, starting sooner means you can begin enjoying the potential benefits of salary packaging straight away.