PBI / charity salary packaging 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. Use the calculator to see your personal tax saving.
- Cap: $31,177 grossed-up
- ≈ $16,523 cash limit
- 2026–27 rates
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.
Who can use this calculator?
This calculator is designed for employees of public benevolent institutions and other registered charities that are endorsed as FBT-exempt. If your employer is endorsed as FBT-exempt, you can ask your payroll team or salary packaging provider to set up an arrangement so eligible expenses are paid from your pre-tax salary.
What can be packaged?
- Rent or mortgage repayments
- Credit card repayments and household bills
- Groceries, school fees and childcare
- Car costs and novated leases
- Meal entertainment and holiday accommodation (separate $2,650 cap)
How the cap works
The $31,177 cap is measured on the grossed-up taxable value of the benefits using the Type 2 gross-up rate of 1.8868. Dividing by that rate gives roughly $16,523 of cash salary you can sacrifice before FBT applies. Amounts above the cap are generally subject to FBT, and the calculator limits your result to the cap.
Example tax savings by salary
Maximum packaging for $17,927 a year (living expenses plus meal entertainment), 2026–27 resident rates, Medicare levy included, before any provider fee.
| Salary | Marginal rate | Tax saved / year | Per fortnight |
|---|---|---|---|
| $55,000 | 32% | $4,548 | $175 |
| $75,000 | 32% | $5,737 | $221 |
| $95,000 | 32% | $5,737 | $221 |
| $130,000 | 32% | $5,737 | $221 |
| $180,000 | 39% | $6,992 | $269 |
Roles this applies to
- Disability support workers
- Community and youth workers
- Social workers and case managers
- Aged care and homelessness service staff
- Fundraising and administration staff
- Managers of PBI programs
Worked scenario
A disability support worker on $72,000 has a $19,000 a year rent bill plus groceries and utilities. Because a PBI cap is nearly double the hospital cap, they can route most of that spending through pre-tax pay.
Practical tips
- Not every charity is a PBI. Ask your employer to confirm in writing that it is an endorsed PBI with FBT exemption, not just a registered charity.
- Some PBIs offer a lower cap than the legal maximum to limit administration, so confirm your own employer's policy.
- Because the cap is high, check that the reportable fringe benefits amount will not push you over the Medicare levy surcharge or HELP thresholds.
- Salary packaging benefits are usually largest for workers on middle incomes (the 30% bracket and above).
Read more in our salary packaging guide or browse all guides.
Frequently asked questions
How much can I salary package as a PBI or charity employee?
The FBT-exempt cap is $31,177 a year in grossed-up terms, which is roughly $16,523 of your pre-tax cash salary. A separate $2,650 grossed-up cap (about $1,404 cash) applies to meal entertainment and holiday accommodation.
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.
Sources and review
Rates are based on information published by the Australian Taxation Office, including individual income tax rates and fringe benefits tax rates and thresholds. Figures were last reviewed in October 2026. See our methodology for assumptions and limits. This is general information, not tax advice.
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