Client: Smartgroup Corporation
Title: Strategic impact assessment of increased uptake of salary sacrificing provisions
Client’s challenge:
Smartgroup is an ASX-listed business and a leading provider of salary packaging services to employers across Australia. Smartgroup sought to quantify the fiscal cost and employee benefits of expanding salary sacrificing provisions, including assessing the impact of increased uptake of FBT exemption provisions. At the same time, Smartgroup wanted to deeply understand and measure participation trends within the large workforce of one of its major clients. This required both a broad policy‑level assessment and a granular workforce analysis to identify opportunities for expanding participation and estimating the potential financial benefits available to employees not currently engaged in salary packaging.
Our solution:
Positive Economics Advisory undertook a two‑part analysis. First, we reviewed existing salary sacrificing provisions, gathered market data on typical patterns, and developed realistic assumptions of uptake. We quantified the potential increase in benefits for eligible workers under multiple scenarios, considering impacts for both current participants and non‑participants. Second, we estimated the current participation rates across organisational cohorts, states and territories, age groups, and benefit types. This segmentation enabled us to highlight significant unrealised income tax savings for non‑participating employees and explore the relationship between salary packaging and employee retention. Findings were consolidated into clear deliverables, including a report and an executive-ready slide deck that summarised the findings.