Tax planning for wage earners

Mal Smith • May 19, 2015

Tax planning for wage earners

Budgeting and tax planning might sound like something just for businesses, but getting advice before 30 June is important for individuals too, especially if you’re earning higher wages. One option to consider is salary packaging.

If you are an employee, you would typically receive a regular salary paid directly to a bank account. Sometimes, it can be beneficial to forgo part of our cash salary and receive payment in the form of some other type of benefit instead. In this situation, you make an agreement with your employer to receive part of your payment for work in the form of a ‘non-cash benefit’. This is called salary packaging.

One of the main benefits of salary packaging is that it may allow you to reduce the amount of tax you have to pay. This allows you to receive a greater overall benefit from your employment, as the amount you save in tax you receive in non-cash benefits. In theory, it’s possible to salary package any benefit you like. However, only certain items will provide a tax benefit when packaged.

When you elect to package part of your salary, you are still required to pay tax. The amount and type of tax you pay depends on what you are receiving. Non-cash benefits are generally subject to a tax called fringe benefits tax (FBT), rather than being taxed at your marginal rate.

So what benefits do not attract FBT? Superannuation contributions, laptop and portable computers, work related items like protective clothing, subscriptions and memberships, professional education and income protection are some examples of how salary packaging allows you to structure your income in a more effective way. As most of these items are expenses that are usually payable over 12 months, now is the time to be planning for next financial year.

The success of a salary packaging strategy strongly depends on the tax implications, which is why we recommend that you seek advice and speak with your accountant as to what suits your situation.

This document provides general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. This information does not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances.

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Adrian Rasmussen retires after decades supporting Regional Queensland

By BMO • June 30, 2026
After an incredible career dedicated to supporting regional businesses, farming families and rural communities, BMO Business Centre Partner Adrian Rasmussen will officially retire from the partnership effective 30 June 2026. For many across the Western Downs and beyond, Adrian has been far more than an accountant or advisor. Over decades in business, he has built trusted relationships grounded in honesty, loyalty and a genuine understanding of regional life and the people who live it. Adrian’s connection to the country and agriculture has always been at the heart of who he is. He has worked alongside generations of farming families and business owners through seasons of growth, challenge and change, becoming a steady and respected presence for clients, colleagues and the wider community alike. Reflecting on his time at BMO, Adrian said the relationships formed throughout his career have been among the most rewarding parts of the journey. “It has been a privilege to work with so many wonderful people over the years; not only clients, but colleagues and communities who have become lifelong friends,” Adrian said. “Regional communities are built on relationships, trust and supporting one another, and I’m incredibly grateful to have been part of that throughout my career.” BMO Business Centre Managing Partners Kelvin Tyler and Michelle McVeigh said Adrian’s contribution to both the business and the region would leave a lasting legacy. “Adrian has played an incredibly important role in shaping BMO into the business it is today,” they said. “His care for clients, commitment to regional communities and calm, practical approach have earned enormous respect across our industry and the communities we serve. While we will certainly miss having him in the office, we are excited for Adrian and his family as they enter this next chapter.” While stepping away from the partnership, Adrian is looking forward to spending more time with family, on the farm and enjoying a well-earned change of pace after many years dedicated to supporting others. Everyone at BMO Business Centre extends their sincere thanks to Adrian for his years of service, friendship and leadership, and wishes Adrian and his family all the very best for the future.

Your 30 June superannuation checklist

By Nikki Ashurst • June 4, 2026
Five easy ways to get more into your super fund before the end of the financial year.