Why it can matter
Your take-home pay and taxable income both fall when you package, but the expenses you package are still being paid on your behalf. A lender who only looks at your net pay might see less income than you really have available.
How lenders usually respond
Policies vary widely between lenders. Some add packaged amounts back when they assess your income, while others use the reduced taxable figure. Packaged rent or mortgage repayments can also be treated differently from packaged spending that stops when you buy a home.
What to do before you apply
Tell your broker or lender about your salary packaging arrangement early, and bring your payslips and the most recent income statement showing your reportable fringe benefits amount. Consider whether to pause or reduce packaging while you apply, and ask your broker which lender policy suits your situation.
When it can still make sense
If the tax saving is large and you are not borrowing near your limit, packaging may still be worthwhile. Use the salary packaging calculator to see the benefit and compare it with the impact on your borrowing power.