I Work For The Government, How Can I Save Tax?

​Working in government roles often comes with enticing perks, and one of the significant advantages is the opportunity to leverage various tax-saving schemes. Many government jobs offer contribution matching for salary sacrificing, a strategy that not only secures additional contributions from your employer to your superannuation but can also trim down your taxable income, resulting in potential tax savings.

In addition to government matching schemes, employers may present enticing salary packaging options through services like RemServ or SmartSalary. This allows employees to effectively pay for certain expenses, such as car repayments, work-related devices, mortgage payments, or daily essentials, with pre-tax dollars. While this can be a powerful tax-saving strategy, it's very important to note that the optimal benefits are often suited to employees in hospitals or not-for-profit organisations with a fringe benefit tax (FBT) exemption.

For those outside these sectors, engaging in salary packaging may lead to paying a grossed-up amount of tax. This can effectively increase your amount of tax especially if you have HELP debt. It's crucial to weigh the potential tax benefits against your specific circumstances and consult with financial professionals if needed.

Understanding the intricacies of salary sacrificing, salary packaging and its tax implications is key to ensuring that you are maximising the benefits available to you as a government employee. By making informed choices tailored to your situation, you can navigate the landscape of tax efficiency and make the most of the perks offered by your government position.