About the Salary Packaging Calculator
Salary packaging allows Australian employees to structure their remuneration to maximise take-home pay and minimise tax. The Salary Packaging Calculator Australia helps you compare your current salary against a packaged arrangement, showing the tax savings available through legitimate deductions and fringe benefit structures. The ATO regulates salary packaging through Fringe Benefits Tax legislation, which applies to many employer-provided benefits. This tool is designed for Australian employees in both the public and private sectors, as well as employers who want to offer competitive remuneration packages to attract and retain talent.
What is the Salary Packaging Calculator?
Salary packaging (also known as salary sacrifice) is an arrangement where an employee forgoes part of their pre-tax salary in exchange for benefits provided by their employer. Common packaged items include cars (through novated leases), superannuation contributions, laptops, and parking. The tax treatment varies: some benefits are exempt from FBT (such as super contributions up to the concessional cap), while others attract FBT at the highest marginal rate. Not-for-profit and public sector employees often have access to higher FBT thresholds. This calculator takes your salary, chosen benefits, and employment type to show the net tax saving and the effective cost of each packaged item.
How to Use This Calculator
- 1Enter your gross annual salary: Input your current pre-tax salary as shown on your employment contract.
- 2Select your employment sector: Choose between for-profit, not-for-profit, or public sector as FBT rules differ significantly.
- 3Choose benefits to package: Select from novated lease, super contributions, electronic devices, or parking.
- 4Enter benefit values: Provide the annual cost of each benefit you wish to package.
- 5Review your savings: The calculator will show your effective tax saving, your new take-home pay, and the net cost of each packaged benefit.
Worked Australian Example
Practical Example
Emily works as a nurse at a public hospital in Adelaide, SA, earning $85,000 per year. She wants to salary package a new laptop worth $3,000 and an additional $5,000 in super contributions. Using the Salary Packaging Calculator Australia, Emily enters her salary and selects public sector not-for-profit status. The calculator applies the FBT exemption available to public hospitals and shows that packaging the laptop saves her approximately $900 in tax compared to buying it with after-tax dollars. The additional super contributions save her $1,125 in tax while boosting her retirement savings. Her total take-home pay reduces slightly from $5,500 to $5,150 per month, but the combined value of her packaged benefits makes the arrangement worthwhile.
Common Salary Packaging Calculator Questions
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Use Calculator →Reviewed by
BizMetrixs Team
Australian Financial Specialists