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Salary Packaging Calculator 2026–27

See how salary packaging reduces your taxable income and increases your take-home pay for 2026–27. Includes an FBT implication note.

Your details
Result FY 2026–27
Annual Tax Saving
$0
Original Take-Home Pay$0
New Take-Home Pay (cash)$0
New Taxable Income$0
Original Tax Payable$0
New Tax Payable$0
Net Benefit (cash + benefits)$0

How Salary Packaging Works

Salary packaging allows you to receive part of your remuneration as non-cash benefits rather than taxable salary. Because these benefits are provided by your employer, they reduce your taxable income — meaning you pay less income tax.

FBT-Exempt Benefits (Best Value)

Certain benefits are exempt from Fringe Benefits Tax (FBT), making them especially valuable to package:

  • Portable electronic devices — laptops, tablets, mobile phones (one of each type per FBT year)
  • Tools of trade — equipment primarily used for work
  • Work-related software
  • Protective clothing

Not-For-Profit (NFP) Salary Packaging

Employees of eligible NFP organisations (hospitals, charities, public benevolent institutions) can package up to $15,900 per year in living expenses (rent, mortgage payments, bills) and a further $2,650 in meal entertainment — completely FBT-free. This is one of the most powerful tax benefits available to Australian employees.

A worked example

On a $95,000 salary at a 30% marginal rate, packaging the full $15,900 NFP living-expenses cap is worth $5,088 a year in tax. Cash take-home falls from $74,080 to $63,268 — but the packaged $15,900 is paid out of pre-tax dollars on your behalf, which is where the saving comes from.

FBT-Liable Benefits

Benefits such as company cars (outside novated leases), low-interest loans, and private school fees are subject to FBT at 47%. In practice, your employer typically passes the FBT cost back to you, which means the net tax saving is reduced or eliminated for higher-income earners. Always confirm the FBT treatment with your employer before packaging.

Novated Leases

A novated lease packages a car (and running costs) through your employer. It involves pre-tax and post-tax contributions to minimise FBT under the employee contribution method (ECM). Use a dedicated novated lease calculator for an accurate comparison.

Frequently Asked Questions

What is salary packaging in Australia?
Salary packaging (also called salary sacrificing) is an arrangement where you receive part of your remuneration as non-cash benefits instead of taxable salary. This reduces your taxable income, lowering the income tax you pay. Common packaged items include novated car leases, extra super contributions, laptops, phones, and — for NFP employees — living expenses.
How much can I salary package?
It depends on your employer and the type of benefit. For most private sector employees packaging FBT-exempt items (laptops, phones), the amount is limited by how much of each you actually need for work. NFP employees can package up to $15,900 in living expenses and $2,650 in meal entertainment per FBT year, FBT-free. Other benefits may have FBT applied at 47%.
Does salary packaging affect my mortgage or loan applications?
Potentially yes. Lenders assess your income for loan serviceability. If your taxable income is reduced by packaging, some lenders may use a lower base income figure. However, many lenders will gross up your salary packaging benefit for serviceability purposes. Check with your lender or broker.
Does packaging reduce my super contributions?
Employer super guarantee (12%) is calculated on ordinary time earnings (OTE). If packaging reduces your OTE base, your employer super may decrease slightly. Some employers continue to calculate super on the pre-packaging salary — check your employment contract or agreement.
What is the difference between salary packaging and salary sacrifice into super?
Salary sacrifice into super is a specific type of salary packaging where you direct pre-tax salary into your super fund. Contributions are taxed at 15% in the fund rather than your marginal rate — a significant saving for those in the 30%+ brackets. The concessional contributions cap is $30,000 per year (including employer SG).
Is salary packaging available to all employees?
Not necessarily. Salary packaging must be offered by your employer — you cannot unilaterally package benefits. Government and NFP employers are the most common, but many private sector employers also offer packaging for super, cars, and technology. Check your employment contract or HR department.
Disclaimer: This calculator illustrates the income tax saving from reducing taxable income. It does not model FBT liability, which may reduce or eliminate the benefit for non-exempt packaged items. NFP salary packaging limits and rules differ. Not financial or tax advice — consult a registered tax agent or financial adviser.

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