What remserv salary packaging means for your pay comparison

What is remserv salary packaging?

When you read a job advertisement, the salary figure is usually gross – the amount before tax and other deductions. But some employers also offer salary packaging, which lets you pay for certain items with pre-tax dollars. remserv salary packaging is one provider that manages these arrangements for employers. This guide explains how remserv salary packaging affects your pay comparison, using the Salary Index as a benchmark.

Salary packaging is not extra pay; it is a way to structure your existing salary. You agree to forgo some cash salary in exchange for a benefit (like a car, laptop, or super contributions). Because the benefit is paid with pre-tax money, your taxable income drops, and you pay less tax. The employer may also save on payroll tax, and some pass on part of that saving to you.

How does it relate to the Salary Index?

The Salary Index measures full-time adult ordinary-time earnings – currently $108,352 per year (index 100). This is the gross ordinary-time benchmark from the Australian Bureau of Statistics. Your own index is your gross annual salary divided by $108,352, times 100. For example, a retail worker on $60,000 has an index of about 55.4. **Salary packaging does not change your gross salary – it only changes how you receive part of it. So your index figure stays the same whether you package or not. But your take-home pay can be higher.

Tax benefits of remserv salary packaging

Using the 2026–27 resident tax rates (nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, 45% above), plus the 2% Medicare levy, every dollar you package saves you tax at your marginal rate. For someone earning $100,000 (index 92.3), the marginal rate is 30% plus 2% Medicare = 32%. Packaging $10,000 saves about $3,200 in tax. The super guarantee (12% from July 2026) is still calculated on your ordinary time earnings, which includes salary sacrifice amounts – so your super does not drop.

Comparing job offers with remserv salary packaging

When you see two job ads – one offering $90,000 gross with remserv salary packaging, another offering $95,000 gross without – you need to compare total value. The $90,000 job might let you package a car worth $15,000, reducing taxable income to $75,000. Your take-home pay (excluding packaging) would be higher than the $95,000 job if you would have paid tax on that $15,000 anyway. Use the pay guides to check minimum award rates, but remember that packaging is a benefit on top of the base salary.

Industry and state context

Your industry and state also affect your pay comparison. For example, the industries page shows mining at index 154.7, while accommodation and food services is 72.5. A job in mining may already have a high gross salary, so packaging adds less relative benefit. State differences matter too: Western Australia has an index of 106.9, Tasmania 88.6. If you move states, your gross pay may change, but packaging rules are federal (FBT and tax).

Practical example

Imagine you are a health professional earning $80,000 (index 73.8). Your employer offers remserv salary packaging for a novated lease car worth $12,000 per year. Your taxable income becomes $68,000. Tax on $68,000 (using 2026–27 rates): $0 on first $18,200, then 15% on $26,800 ($4,020), then 30% on $23,000 ($6,900) – total tax $10,920 plus Medicare $1,360 = $12,280. Without packaging, tax on $80,000: $0 + $4,020 + 30% on $35,000 ($10,500) = $14,520 plus Medicare $1,600 = $16,120. You save $3,840 in tax. Your gross index stays 73.8, but your net pay is effectively higher.

Caveats and considerations

• Fringe benefits tax (FBT): Some packaged items (like cars) attract FBT, but many employers pay this as part of the arrangement. Check if the employer covers FBT or if it is deducted from your salary.
• Caps: There are limits on how much you can package for certain items (e.g., $30,000 for cars under some rules).
• Award and agreement conditions: Modern awards may restrict salary packaging for some employees. The national minimum wage from July 2026 is $26.44 per hour (index 48.2), but award rates can be higher. Packaging cannot reduce your pay below the award minimum.
• Super guarantee: As noted, SG is based on ordinary time earnings including salary sacrifice, so your super is protected.

How to use this information

When you read a job ad that mentions remserv salary packaging, ask for the total remuneration package (base salary plus packaging value). Compare the gross salary using the Salary Index, then estimate the net benefit of packaging using your marginal tax rate. Remember that packaging is not cash – it is a benefit in kind. For a full picture, also check topics on salary negotiation and total compensation.