Remuneration packaging has increasingly developed to become a feature of the overall remuneration of many employees. Its principal aim is to legitimately restructure the way in which employees receive income so as to maximise their disposable income.

The concept is quite simple, but many employers and employees are not sure of the value it offers them. Instead of receiving the whole remuneration package as gross taxable income on which PAYG tax is payable, the employee may elect to take part of their remuneration in some other form; typically the payment of regular expenses such as superannuation, motor vehicle expenses or mortgage payments. In other words, the exchange of taxable salary for benefits paid by the employer.

Whilst the benefits for employees are obvious in greater disposable income, significant benefits also exist for employers. An effective remuneration policy will help to attract and retain quality staff and minimise staff turnover.