Salary Packaging Calculator
2026/27 · See exactly how much tax you save by packaging your salary
Without Packaging
With Packaging
Take-Home Without
Take-Home With
Who is eligible for salary packaging?
Salary packaging under the FBT exemption is available to employees of public hospitals, public benevolent institutions (PBIs), health promotion charities, and other registered NFP organisations. Private company employees are generally not eligible for the same FBT-exempt caps.
The general living expenses cap ($9,010 for public hospital and ambulance employees, $15,900 for PBI and health promotion charity employees) can be used for a wide range of everyday expenses: rent, mortgage repayments, utility bills, loan repayments, school fees, and more. The separate $2,650 meal and entertainment card cap is used for restaurant meals, takeaway food, venue hire, and holiday accommodation.
The key advantage: these amounts come from your pre-tax salary, so you effectively receive them at a 0% tax rate. At a 30% marginal rate, $9,010 of packaging is worth around $2,700 in extra take-home value. Your employer needs to have a salary packaging arrangement with an approved administrator.
Worked example
An employee of a public hospital on a $100,000 salary packages $5,000 of living expenses, which is within their $9,010 cap. Their taxable income falls to $95,000. Using the 2026/27 resident rates, income tax drops from $20,520 to $19,020, a saving of $1,500. The 2% Medicare levy also falls by $100, so the total saving is about $1,600, or 32% of the amount packaged. This ignores any employer admin fee. General information only, not financial advice.
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Frequently asked questions
Who can salary package?
Mainly employees of certain employers, such as public hospitals, public ambulance services and some charities and public benevolent institutions, which can offer benefits within set annual caps. Most other employees can still salary sacrifice into super. Check with your employer which options they offer.
Does salary packaging affect other income-based amounts?
It can. Some packaged benefits are reported to the ATO as reportable fringe benefits, which can count towards income tests such as the Medicare Levy Surcharge and HECS-HELP repayment income. Check how your own arrangement is reported.
Do I really pay less tax?
You pay income tax on a lower taxable income, so your tax falls. But the amount you package is spent on benefits instead of being paid to you as cash. Compare the take-home figures with and without packaging shown on this page.
Does salary packaging reduce my super?
Amounts you sacrifice into super are added back when your employer calculates super guarantee. Amounts sacrificed for other things, such as living expenses or a car lease, still reduce that base, so your employer’s super can be lower. Check whether your employer pays super on your pre-packaging salary.
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General information only, not tax or financial advice. Figures are estimates based on 2026/27 ATO rates and thresholds. Page last updated: October 2026. Check ato.gov.au or speak to a registered tax agent before making decisions. See our disclaimer & privacy page.