Those familiar with salary packaging understand the limits and the importance of adhering to them. But in an age of rapidly rising costs of living, changing tax rates, and indexation, has anyone stopped to think: “shouldn’t these limits be increased in line with everything else?”.

As you will read elsewhere on this website, the pre-tax salary packaging limits are set at $15,900 for FBT exempt employers, such as public benevolent institutions and health promotion charities. Employees working in sectors like aged care, disability support and medical research can take advantage of this limit to salary package expenses such as rent, loan repayments and school fees. Employees in public health can salary package $9,010 per year. And both groups of employees can salary package an additional $2,650 pre-tax towards holiday accommodation and dining expenses. Pretty good, right?

Well, yes, it’s a great offering which saves tax! But it’s hard to argue that the value of this benefit is the same as it once was. This is highlighted in a recent article by our friends at Next Dimension Accounting. Check out the entire piece for a comprehensive explainer. Perhaps it’s well and truly time for a review?