One pre-tax salary. Four ways to package it.
Salary sacrifice redirects part of your pay before tax — into super, a car, living expenses, or work equipment. Estimate each current option below; the work-equipment calculator separately applies the 1 April 2027 reform cutoff.
- Packaging options
- 4
- Super sacrifice tax
- 15%
- Super cap
- $32,500
- FBT-free living
- $9,010
How much could you save?
Enter your salary and how much you'd package each year to see your rough annual saving. Each option has a full calculator for the exact picture.
Packaging a car instead? Use the novated lease calculator — leases factor in FBT, GST, and running costs.
Compare salary sacrifice options
| Type | Who it's for | Cap / Limit | Key benefit |
|---|---|---|---|
| Super | Any employee | $32,500/year concessional cap | 15% super tax vs marginal rate |
| Novated Lease | Any employee | No cap (FBT applies to ICE; EVs exempt) | Pre-tax car + running costs + GST savings |
| Healthcare | Hospital / ambulance / PBI / HPC | $9,010 hospital or $15,900 PBI/HPC living expenses | FBT-free living expenses |
| Work Equipment | Employees with eligible work items | Salary-packaged exemption cutoff: 31 Mar 2027 | GST + income-tax estimate for eligible items |
How salary sacrifice works
Salary sacrifice (or salary packaging) swaps part of your pre-tax cash for an approved benefit, lowering your taxable income — though reportable super contributions and fringe benefits are added back when a study loan repayment is assessed, so check the HECS repayment calculator if you have a debt. Four steps:
- Step 1Pick a benefit
Super, a novated lease, healthcare packaging, or work equipment — each has its own tax treatment and caps.
- Step 2Agree it with your employer
Your employer deducts the amount from your gross pay before income tax is calculated.
- Step 3Pay less tax
Your taxable income drops by the packaged amount, so you pay less income tax each cycle.
- Step 4Receive the benefit
The money goes to your super fund, lease, or packaging provider instead of your bank account.
Want the trade-offs, eligibility, and worked examples in depth? Read the complete salary sacrifice guide.
Frequently Asked Questions
What is salary sacrifice?
Salary sacrifice (also called salary packaging) lets you redirect part of your pre-tax salary toward approved benefits like superannuation, a car (novated lease), or living expenses (for eligible healthcare workers). Because the amount is deducted before income tax is calculated, it reduces your taxable income and therefore the tax you pay.
What are the different types of salary sacrifice?
The main types include: (1) Superannuation — extra pre-tax contributions to your super fund, taxed at 15% instead of your marginal rate. (2) Novated lease — salary package a car and running costs. (3) Healthcare salary packaging — employer-category-specific FBT caps for eligible hospital, ambulance, PBI, and health-charity employees. (4) Eligible work-related items — the specific exemption applies to salary-packaged benefits provided only through 31 March 2027; different rules apply from 1 April 2027.
How much tax can I save with salary sacrifice?
Your saving depends on your marginal tax rate and the amount you package. Use the estimator above for a quick cross-type figure, then open the calculator for your chosen option to see the exact result for the current financial year.
Does salary sacrifice reduce my take-home pay?
Yes, but by less than the amount you sacrifice. Because you pay less income tax, some of the sacrifice is offset by tax savings. For example, sacrificing $100/week to super might only reduce your take-home by $60–$70/week depending on your tax bracket.
Can anyone salary sacrifice?
Most employees can salary sacrifice to super or a novated lease if their employer offers it. Eligible hospital and ambulance employees commonly have a $9,010 living-expenses cap, while eligible PBI and health-promotion-charity employees commonly have a $15,900 cap. The specific work-item exemption stops applying to items provided under salary packaging from 1 April 2027.
What is the difference between salary sacrifice and salary packaging?
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