Salary Packaging Calculator

How the Salary Packaging Calculator Estimates Your Savings

Salary packaging lets you pay some everyday expenses from your salary before tax is taken out. If you work for a charity, public benevolent institution or public hospital, those benefits can be free of fringe benefits tax up to a yearly cap — so you pay less income tax and have more left to spend. This salary packaging calculator compares your net pay with and without packaging, using 2026-27 Australian tax rates, and shows the extra take-home pay per year and per pay.

How It Works

Worked Example

Sam earns $80,000 a year at a public benevolent institution and is paid fortnightly. Without packaging, Sam pays $16,120 in tax and Medicare and takes home $63,880. Sam packages the full $15,900 general cap plus $2,650 of meal entertainment, which cuts taxable income to $61,450 and tax to $10,105.75. Cash pay drops to $51,344.25, but with $18,550 of bills paid from pre-tax salary, Sam's total spendable pay is $69,894.25 — $6,014.25 more a year, or about $231.32 more per fortnight (roughly 32 cents for every dollar packaged). Sam's income statement will show a reportable fringe benefits amount of about $30,000.

Salary Packaging Caps in Australia at a Glance

Caps apply per FBT year (1 April – 31 March). Use the comparison table in the calculator to see the extra take-home pay at $5,000, $10,000 and the maximum cap — a quick salary packaging comparison tool before you talk to your provider.

Frequently Asked Questions

How does this salary packaging calculator work out my take-home pay?

It calculates your tax twice: once on your full salary, and once on your salary minus the amounts you package (and any super salary sacrifice). The difference is your tax saving. Your new take-home pay is the lower cash pay plus the packaged benefits paid on your behalf, less any provider fee — that total is compared with your pay without packaging, per year and per pay.

Is there an ATO salary packaging calculator?

The ATO sets the fringe benefits tax (FBT) rules and exemption caps that salary packaging relies on, but it doesn't run a salary packaging calculator itself. This calculator applies the ATO's FBT-exempt caps — $15,900 for PBIs and health promotion charities, $9,010 for public and not-for-profit hospitals, and $2,650 for meal entertainment — along with 2026-27 income tax rates. Your packaging provider's own calculator should give similar results for your exact arrangement.

Who can package up to $15,900 or $9,010 a year in Australia?

Employees of public benevolent institutions (PBIs) and health promotion charities can package up to $15,900 of benefits a year FBT-free (a $30,000 grossed-up cap). Employees of public and not-for-profit hospitals and public ambulance services get a $9,010 cap ($17,000 grossed-up). If you're unsure which applies, check with your payroll team — it depends on your employer's FBT status, not your job title.

What is the $2,650 meal entertainment cap?

Eligible not-for-profit employees can package a further $2,650 a year ($5,000 grossed-up) for meal entertainment — such as dining out with others — and entertainment facility leasing like venue hire for a function. It sits on top of the general cap, and meal entertainment isn't included in your reportable fringe benefits amount. Your provider will have its own rules about what receipts count.

Can I use the salary package calculator if I work for a standard employer?

Yes, but the result will usually show no living-expense saving: standard employers have no FBT-exempt cap, so packaging rent or bills would attract FBT and cancel out the benefit. The common options are salary sacrificing into super and novated car leases. A novated lease packages a car's costs through your pay, and eligible electric cars can be exempt from FBT, which can make a novated lease worthwhile — get a quote and compare it with buying outright.

What does salary packaging do to my reportable fringe benefits?

Packaged benefits (other than meal entertainment) are shown on your income statement as a reportable fringe benefits amount, roughly the packaged amount × 1.8868 — about $30,000 if you package the full $15,900. It doesn't change your income tax, but it is counted for HELP/HECS repayments, the Medicare levy surcharge, family and child support assessments, some Centrelink tests and super co-contribution eligibility, so check how it affects you.

How does salary sacrificing into super change my net pay?

Super salary sacrifice reduces your taxable income, but the money goes into your fund rather than your pocket, so your spendable pay falls by the amount sacrificed minus the tax you save. Inside the fund it's taxed at 15% (more if your income exceeds the Division 293 threshold). Your employer's 12% Super Guarantee plus your salary sacrifice counts towards the $30,000 concessional cap — the calculator warns you if you go over.

What can I package, and how much will a salary packaging savings calculator say I save?

Common items include rent or mortgage repayments, utility and phone bills, credit card or loan repayments, and other everyday living expenses, depending on what your employer and provider allow. Your saving is roughly the packaged amount × your marginal tax rate plus the 2% Medicare levy — about 32 cents per dollar for someone in the 30% bracket — less any provider fees. If your income is already under the tax-free threshold, packaging saves little or nothing.

Why do salary packaging caps run from April, not July?

Packaging caps apply per FBT year, which runs from 1 April to 31 March, while income tax runs on the 1 July to 30 June financial year. If you start packaging part-way through an FBT year you can still use the full cap by 31 March, but your packaged amounts will spread across two income years. This calculator simplifies things by treating everything as one full year.