2026/27 · See exactly how much tax you save by packaging your salary
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 $9,010 general cap 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.