Can you reduce tax debt through salary sacrifice? Here's how it works

Did you get a tax bill last financial year?

That could partly be due to the end of the low- and middle-income tax offset as of last year.

Depending on what industry you’re in and the benefits your employer offers, there might be a way to reduce your debt in future tax returns.

It’s called salary sacrifice and here’s how it works.

How does salary sacrifice work?

It’s an agreement between you and your employer that relates to how you get paid.

It would involve you getting less income before tax.

In return, your employer covers that amount by paying for certain benefits of similar value for you.

Think of it as swapping a slice of your pay cheque for other forms of perks.