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Live the lifestyle you love with salary packaging.
Interest rates might be decreasing, but the cost of living keeps going up. Aussies are spending more than ever before on groceries. Rent and mortgage repayments are climbing. Power bills seem to double overnight.
In Smart’s cost of living report, Stretching Your Salary: How Australians are Managing Cost of Living Pressures^ , 79% of people said they’re moderately to extremely concerned about the rising cost of living.
Rising costs mean many Aussies aren’t able to do the things they want to do – go on holiday, buy their first home, or buy a car – or even little things like going out for dinner or catching a movie.
But there is a way to make your income stretch further – without subsisting on instant noodles or missing out on your morning flat white. It’s called salary packaging, and it could make your life much more enjoyable.
In our survey, 42% of people said their living expenses had increased significantly in the past year. More than 60% said they’re feeling more financially stressed than they did a year ago.
The biggest pressures on people’s budgets? Mortgage payments (28.3%), groceries (27.7%), and rent (24.4%).
And with people’s wages lagging way behind increasing living costs, many Aussies are having to make tough calls. They’re cutting back on holidays and delaying big purchases, like new tech or cars.
It’s not just the big stuff they’re going without, either – it’s their yoga studio membership, their Spotify subscription, or getting a drive-thru dinner after a long day at work.
In short: they’re cutting out all the good stuff.
Salary packaging (also known as salary sacrificing) is a simple way to make your income go further. It lets you pay for certain everyday expenses using your pre-tax salary – which means you could reduce your taxable income and boost your take-home pay.
Depending on where you work, you might be able to package everything from a night out with friends to a brand new car.
What you can salary package depends on your employer, your industry, and your employment type – so the best way to find out what’s available to you is by using the calculator at smart.com.au.
Already salary packaging? Check you’re making the most of it. Many people don’t realise they could be claiming more. Could you be salary packaging new tech? Meals out? Even utility bills?
According to Smart’s survey, 33% of current users plan to increase the amount they salary package this year – and with good reason. Every eligible dollar you package could put more money back in your pocket.
Whether you’re looking to cut costs, upgrade your tech, or say “yes” more often to the things that make life feel good, here are three ways salary packaging can help you live the good life.
If you’ve been dreaming about buying a new car, but the cost is putting you off, a novated lease could change the equation.
With a novated lease, you can bundle your car payments and running costs (including fuel, servicing, insurance, rego, and more) into one monthly payment, which is deducted from your pre-tax income.
Happy with your current ride? That doesn’t mean you have to miss out on the benefits of a novated lease. You can salary package your current car* through sale and leaseback – you sell your car to us, and we lease it back to you. Simple!
Does your phone have a big ol’ crack in its screen? Is your laptop battery barely holding charge? Salary packaging new tech could make it more affordable.
You may be able to pay for a portable electronic device (PED) from your pre-tax income and save on tax, as long as you use it for work more than 50% of the time.
If you work in healthcare or the not-for-profit sector, you might be eligible to salary package meal entertainment.
This includes everything from coffee and cake at your local cafe to dinner at the pub with friends, up to a cap of $2,650 per year – so you can RSVP “yes” to your next invite without any guilt.
Salary packaging won’t solve every financial challenge. But for many Australians, it can offer a much-needed buffer when times are tight. It’s a way to stretch your salary further, so you have more money to spend on what you love.
Whether it’s a new laptop that doesn’t freeze mid-Zoom or Friday night dinner with friends, salary packaging can help you hold onto life’s little joys, even when everything else is getting more expensive.
You can calculate your savings with our salary packaging calculator here.
Get tax savings by salary packaging items you already pay for.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and obtain appropriate legal, tax, financial, or other professional advice based upon your own particular circumstances. This information is current as at July 2025.
^This report is based on Smart’s Cost of Living survey, where 1,379 customers were surveyed from 28 April to 18 May 2025.
*To package a used or current car, certain financier requirements must be met. Exact age requirements and minimum value depend on which financier you choose. Generally, vehicles should be less than 12 years old at the end of the lease term with a minimum value of $5,000.