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 your saving across every option below, then open the full calculator for the one that fits.
- Packaging options
- 4
- Super sacrifice tax
- 15%
- Super cap
- $30,000
- 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 | $30,000/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 / NFP / ambulance | $9,010 living + $2,650 meals FBT-free | FBT-free living expenses |
| Work Equipment | Any employee | FBT-exempt if primarily for work | GST + income-tax saving on equipment |
How salary sacrifice works
Salary sacrifice (or salary packaging) swaps part of your pre-tax cash for an approved benefit, lowering your taxable income. 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 four main types are: (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 all running costs pre-tax. (3) Healthcare salary packaging — FBT-free living expenses for hospital and NFP employees. (4) Work equipment — salary package laptops, phones, and tools that are FBT-exempt when primarily for work.
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 novated lease if their employer offers it. Healthcare salary packaging ($9,010 FBT-free cap) is limited to public hospital, NFP hospital, and ambulance service employees. Work equipment packaging is available to any employee whose employer participates.
What is the difference between salary sacrifice and salary packaging?
They are the same thing. 'Salary sacrifice' and 'salary packaging' are interchangeable terms. Both refer to an arrangement where you receive part of your pay as benefits instead of cash, reducing your taxable income.
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