Salary packaging calculator for Australia
See how much tax you could save by paying everyday expenses from your pre-tax pay. Built for nurses, hospital staff, charity workers and anyone with a salary sacrifice arrangement.
- 2025–26 & 2026–27 ATO rates
- Private: runs in your browser
- Free, no sign-up
Your estimated savings
Net tax saving per year
$0
| Before | After | |
|---|---|---|
| Taxable income | ||
| Tax + Medicare | ||
| Take-home pay (yearly) | ||
| Take-home (fortnightly) | ||
| Tax saved |
Take-home “after” is what you keep once your packaged expenses are paid from pre-tax pay; you would otherwise pay those expenses from take-home. Estimate only, based on 2026–27 resident rates.
How this salary packaging calculator works
Enter your annual salary and how much you want to package. We calculate your income tax and Medicare levy on your full salary, then again on your salary after the packaged amount is removed. The difference is your tax saving.
Employees of public hospitals, public ambulance services, public benevolent institutions and health promotion charities get an FBT exemption up to a cap, so everyday spending such as rent, mortgage repayments, credit card bills, groceries and car costs can be paid from pre-tax pay. Most other employees can only package things like super, a novated lease or work-related items.
FBT caps used
| Employer type | Grossed-up cap | Approx. cash limit | Meal entertainment cap |
|---|---|---|---|
| Public hospital / ambulance | $17,000 | ≈ $9,010 | $2,650 |
| PBI / charity | $31,177 | ≈ $16,523 | $2,650 |
| Health promotion charity | $17,000 | ≈ $9,010 | $2,650 |
Cash limit = cap ÷ Type 2 gross-up rate of 1.8868. Your employer or provider may apply different limits.
Resident tax rates used
Figures are for Australian residents, excluding the Medicare levy (2%). The first bracket rate falls from 16% to 15% on 1 July 2026.
| Taxable income | 2025–26 | 2026–27 |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16% | 15% |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| $190,001+ | 45% | 45% |
Frequently asked questions
What is salary packaging?
Salary packaging (also called salary sacrifice) is an arrangement where you agree to receive less cash salary, and your employer instead pays for approved benefits on your behalf from your pre-tax pay. Because you are taxed on a lower salary, you pay less income tax.
How much tax can I save by salary packaging?
Your saving is roughly your marginal tax rate plus the 2% Medicare levy, multiplied by the amount you package. For someone earning $90,000 that is 32 cents in every dollar packaged. The calculator above shows your exact figure.
Is the saving real if I still pay for the expense?
Yes. You would have paid for rent, groceries or bills from your after-tax pay anyway. Paying them from pre-tax pay means the tax office takes less, and the difference is your net benefit, less any provider admin fee.
Does salary packaging reduce my superannuation?
Since 1 July 2020 employers must calculate super on your salary before sacrifice, so packaging living expenses does not reduce your employer super guarantee. Check your employment agreement, as the rules differ for some older arrangements.
What is the reportable fringe benefits amount (RFBA)?
If the grossed-up taxable value of your benefits exceeds $2,000 in an FBT year, the amount appears on your income statement as a reportable fringe benefits amount. It does not increase your income tax, but it counts toward income tests such as the Medicare levy surcharge, HELP repayments and some government benefits.
Is this calculator financial advice?
No. It gives general estimates using published ATO rates and simplified assumptions. Your result can differ depending on your circumstances, so confirm with your employer, salary packaging provider or a registered tax agent before signing up.
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Salary packaging guides
Plain-English guides on nurses, EVs, RFBA, meal cards and home loans.
Public hospital calculator
Public hospital and ambulance employees can package up to $17,000 (grossed-up) of everyday expenses FBT-free, plus a separate $2,650 meal entertainment and holiday accommodation cap.
PBI / charity calculator
Employees of FBT-exempt public benevolent institutions can package up to $31,177 (grossed-up) a year, plus a separate $2,650 meal entertainment cap.
Health promotion charity calculator
Health promotion charity employees can package up to $17,000 (grossed-up) a year FBT-free, plus a separate $2,650 meal entertainment cap.