28 April 2013

Employees who have a personal loan could salary package the repayments enabling them to use pre-tax money to make the repayments. This could help them to save on the interest by being able to pay off the loan sooner.

Employees that work for the following organizations could salary package the loan repayments that are in their name (or jointly held with someone else):

  • Charities
  • Not for profit organizations
  • Public or private not for profit hospitals

Loan repayments that can be salary packaged include:

  • Personal loans (including for holidays and debt consolidation)
  • Interest only investment loans

Employees wanting more information on whether this option is available to them should contact their employer.