Salary Packaging Calculator
Charity & Hospital Caps 2026
How much tax you save by salary packaging with a charity, public benevolent institution, or public or not-for-profit hospital: the $15,900 and $9,010 caps, meal entertainment and provider fees.
Read the full answer — method, rates and figures
Quick answer: If you work for a charity, public benevolent institution or health promotion charity, you can salary package up to about $15,900 a year of living expenses (rent, mortgage, bills) tax-free, because the FBT exemption is capped at $30,000 of grossed-up value and the gross-up rate is 1.8868. Public and not-for-profit hospitals and ambulance services have a $17,000 cap, about $9,010 a year.
On top of either, you can package about $2,650 of meal entertainment (a separate $5,000 grossed-up cap). The packaged amount comes out of your pay before tax, so it saves tax at your marginal rate.
Example: on a $75,000 salary at a charity, packaging the full $15,900 plus meal entertainment saves about $6,089 a year in tax (before provider fees); a hospital worker on $85,000 saves about $3,731. 2026-27 tax rates; ATO FBT rates and thresholds, read 6 October 2026.
How much can you salary package in 2026?
Charities, PBIs and health promotion charities: about $15,900 a year ($30,000 grossed-up). Public and not-for-profit hospitals and ambulance services: about $9,010 ($17,000 grossed-up). Plus about $2,650 of meal entertainment for both.
Tax saved a year
$6,089
Net of fees
$6,089
Spendable pay before
$60,480
Spendable pay after
$66,569
Packaging $15,900 of living expenses and $2,650 of meal entertainment cuts your taxable salary to $56,450. Tax falls from $14,520 to $8,431, a saving of $6,089. You are using 100% of your cap.
Put the tax saving to work
Salary packaging frees up a few thousand dollars a year. Richify tracks where it goes, alongside your savings and super.
Tax saved
$6,089
Net of fees
$6,089
Packaged
$18,550
Reportable amount
$30,000
Last reviewed 6 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Your packaged expenses are paid from your pay before tax, so your taxable salary falls by the packaged amount. FBT-exempt employers pay no fringe benefits tax as long as the grossed-up value stays under the cap: $30,000 for public benevolent institutions and health promotion charities, $17,000 for public and not-for-profit hospitals and ambulance services, plus $5,000 for salary-packaged meal entertainment. Grossed-up value = the amount × 1.8868 (the Type 2 rate at the 47% FBT rate). We work out your tax before and after packaging at 2026-27 resident rates, including the low income tax offset and the Medicare levy, and subtract your provider fee. "Spendable pay" counts packaged expenses as money you still get to use, because they pay bills you would have paid anyway.
Salary packaging tax savings by salary
Yearly tax saved with the maximum general package plus full meal entertainment, before provider fees.
| Salary | Charity / PBI | Hospital / ambulance |
|---|---|---|
| $50,000 | $4,639 | $3,140 |
| $65,000 | $6,214 | $3,906 |
| $80,000 | $6,014 | $3,731 |
| $100,000 | $5,936 | $3,731 |
| $130,000 | $5,936 | $3,731 |
2026-27 resident tax rates, LITO and 2% Medicare levy. ATO FBT rates and thresholds (Table 5), read 6 October 2026.
What salary packaging changes besides your tax
Your income statement will show a reportable fringe benefits amount of about $30,000 (the packaged amount × 1.8868) once the packaged amount is over $2,000. It is not taxed, but it counts in some income tests, including the Medicare levy surcharge and HELP repayment income, so check the Medicare levy surcharge calculator if you do not have private hospital cover. If you also want a car through your employer, the novated lease calculator shows that side, and the pay calculator shows your regular take-home pay.
How to use this calculator
- Choose your employer type: charity / PBI / health promotion charity, or public or not-for-profit hospital / ambulance.
- Enter your salary before tax.
- Set how much living expenses you package (the maximum is filled in) and any meal entertainment.
- Enter your packaging provider's yearly admin fee to see the net gain.
❓ Frequently Asked Questions
How much can I salary package in 2026?
It depends on your employer. Public benevolent institutions and health promotion charities: up to $30,000 of grossed-up value a year, which is about $15,900 of actual expenses.
Public hospitals, not-for-profit hospitals and public ambulance services: $17,000 grossed-up, about $9,010. Both can add meal entertainment up to a separate $5,000 grossed-up cap, about $2,650.
The caps run per FBT year, 1 April to 31 March.
Why is the cap $15,900 and not $30,000?
Because the cap is on the GROSSED-UP value. The grossed-up value is what you would have to earn before tax, at the top rate, to buy the benefit yourself.
For most packaged living expenses the Type 2 gross-up rate of 1.8868 applies (FBT rate 47%), so $30,000 ÷ 1.8868 ≈ $15,900 of real expenses.
How much tax does salary packaging save?
Roughly the packaged amount times your marginal tax rate plus the 2% Medicare levy. On $75,000 at a charity, the full package saves about $6,089 a year; at lower incomes the saving is smaller because less of your income is taxed at higher rates.
Provider admin fees come off the saving, so enter your provider's fee to see the net gain.
Does salary packaging affect my HELP repayments or Medicare levy surcharge?
It can. The packaged amount shows on your income statement as a reportable fringe benefits amount, grossed up (about $30,000 for a full charity package).
You are not taxed on it, but the ATO includes it in income tests for some government benefits and obligations, such as the Medicare levy surcharge and HELP repayment income. A full package can therefore raise your HELP repayment even as it lowers your tax.
Who can salary package like this?
Employees of FBT-exempt employers: registered public benevolent institutions (many charities, disability and aged care providers), health promotion charities, and public or not-for-profit hospitals and public ambulance services. Other not-for-profits are usually 'rebatable' employers, which get a 47% FBT rebate instead; packaging there works differently and this calculator does not model it.
Is salary packaging the same as a novated lease?
No. A novated lease is a way of packaging a car, available from most employers. Salary packaging under the charity and hospital caps covers everyday living expenses.
Many health and charity workers do both; the novated lease calculator covers the car side.
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