How to win with your salary packaging – A smart strategy for healthcare workers.

Working in healthcare is rewarding, but let’s be honest – it comes with its fair share of challenges. Long shifts, ongoing training costs, and the everyday pressures of the job can make financial security just as important as career fulfilment.  

That’s where salary packaging comes in. It’s a smart way for doctors and healthcare workers to keep more of what’s earned, reduce tax, and put more money towards things that really matter to you.  

So let’s dive in on how to make your salary packing work for you.  

What is salary packaging? 

Salary packaging allows you to use a portion of your pre-tax income to cover specific expenses, reducing your taxable income and increasing your take-home pay. For medical professionals, this can result in significant tax savings while providing access to valuable financial benefits. 

For example, use some of your pre-tax money to make payments off your new car by stretching your earnings further. It’s like giving yourself a pay rise without your employer having to spend an extra cent. That’s salary packaging in action!  

Should I be salary packaging? 

For healthcare employees, salary packaging can be a powerful tool to help you keep more money in your pocket and less being paid to the tax man.  

Some key salary packaging options are: 

1. Additional Super Contributions - You can boost your retirement savings by making additional super contributions through salary packaging, all while reducing your taxable income.
2. Work-Related Expenses - You can package expenses such as professional memberships, medical journal subscriptions, and continuing education costs, helping you stay up to date while enjoying tax benefits.
3. Portable Devices and Work Equipment - Laptops, tablets, and smartphones essential for work can be salary-packaged, offering a cost-effective way to stay equipped with the latest technology.
4. Vehicles – Including EVs and Hybrids - One of the most attractive salary packaging options is for electric and hybrid vehicles, making it easier and more affordable for you to drive a new energy-efficient car.

Getting started with salary packaging. 

If your employer offers salary packaging, taking advantage of it is easier than you might think. Here’s how to get started: 

• Get the right advice – Salary packaging rules can be tricky, so it’s worth speaking to a specialist or your employer’s HR team to understand what’s available and how it can work for you. 

• Learn about your options – Many healthcare workers aren’t aware of the full benefits of salary packaging. Attending an information session or having a one-on-one consultation can help you maximise your savings. 

• Tailor it to your needs – Not every person has the same financial priorities. Whether it’s boosting your super, packaging a car, or covering professional expenses, choosing the right salary packaging options will ensure you get the most value from the program. 

Taking a little time to understand salary packaging now can mean more money in your pocket in the long run – so why not make the most of it? 

At Cutcher & Neale, we specialise in providing tailored financial solutions for medical professionals. If you're a healthcare employee looking to maximise the benefits of salary packaging, get in touch with our team today.