Salary Packaging - Salary Sacrifice Salary packaging, also referred to as salary sacrifice, involves an employee sacrificing part of his or her salary in return for benefits (e.g. taking a salary of $120,000 plus a motor vehicle and superannuation and other benefits as opposed to taking a salary of $200,000). If the salary sacrifice is regarded as effective by the Australian Taxation Office (ATO), the employer will pay FBT (Fringe Benefits Tax) of 47% on the benefits and they will be exempt...