"Salary packaging" or "salary sacrifice" is a big deal in Australia, where you can direct pre-tax salary into cars, super and other benefits. In New Zealand it works very differently, and there's much less tax advantage — so be careful importing Australian ideas.
Why NZ is different
Most employer-provided benefits in NZ are subject to Fringe Benefit Tax (FBT), which the employer pays. That largely removes the tax advantage of swapping salary for perks — the tax is paid one way or another. There's no broad "package your car pre-tax" system like Australia's novated leases.
What actually helps
- KiwiSaver — the compulsory 3.5% employer contribution (from 1 April 2026) is real extra value on top of your salary. See our KiwiSaver & ESCT guide.
- Employer contributions to a super/complying fund — subject to ESCT, but still a genuine benefit.
- Reimbursing allowances — genuine work expense reimbursements can be tax-free, but they must be real expenses, not disguised salary.
Watch out for
Benefits like health insurance, gym memberships or a work vehicle available for private use are generally FBT-liable — the employer pays FBT, and it doesn't reduce your PAYE. When comparing a job offer, focus on total remuneration: salary + employer KiwiSaver + genuinely valuable benefits.
Compare total value
Use the pay calculator to see take-home for a salary, and the employer cost calculator to see the value of employer KiwiSaver on top.