Salary Packaging, also known as Salary Sacrifice is a technique of restructuring your income. It permits you to purchase a range of items out of your pre-tax salary, rather than your after-tax salary, meaning you have more money in your pay.
Salary Sacrifice is a tax effective strategy for your Superannuation. Given you only pay income tax on your take-home pay, salary sacrificed amounts are not taxable. Like other superannuation contributions, salary sacrificed contributions are taxed at the super fund rate of 15%. Sacrificing a portion of your pre-tax income into super may enable you to reduce your tax bracket and thus, minimise the overall tax you are required to pay.