Healthcare Salary Packaging Calculator
Calculate your tax savings if you work in the healthcare or charity sector. Estimate your increased take-home pay with salary packaging.
Example: Healthcare Worker ($9,010 Cap)
See how a nurse earning $90,000 saves by packaging the full $9,010 cap:
❌Without Packaging
- Gross Income:$90,000
- Taxable Income:$90,000
- Estimated Tax:$20,797
- Take-Home Pay:$69,203
✓With $9,010 Packaging
- Gross Income:$90,000
- Taxable Income:$80,990
- Estimated Tax:$17,914
- Take-Home Pay:$72,086
💰 Result: You take home an extra $2,883 per year! By paying for living expenses with pre-tax dollars, you significantly reduce your taxable income.
Salary Sacrifice Calculator
Calculate tax savings from salary packaging living expenses as a healthcare professional (public/not-for-profit hospitals only).
Eligibility Requirements
This FBT exemption is only available to employees of:
- Public hospitals
- Not-for-profit hospitals
- Public ambulance services
The FBT year runs from April 1 to March 31. Consult your employer or salary packaging provider for specific eligibility.
Healthcare professionals can package up to $9,010 in living expenses (mortgage, rent, utilities, groceries) per FBT year without FBT.
💡 What Can You Package?
Healthcare professionals can package everyday living expenses:
- Mortgage or rent payments
- Utilities (electricity, gas, water)
- Groceries and household items
- School fees
- Credit card and loan payments
🎯 Maximize Your Benefit
High earners can save up to $4,500 per year by maximizing the $9,010 FBT-exempt cap!
"Salary sacrificing into super is taxed at 15%, which is often much lower than your marginal tax rate."
Tax Saved
$2,883
per year
Impact on Take-Home Pay
💰 The Magic of Healthcare Packaging
You pay for living expenses with pre-tax dollars, saving $2,883 in tax while only reducing take-home pay by $6,127!
| Component | Current | With Sacrifice |
|---|---|---|
| Gross Salary | $90,000 | $80,990 |
| Taxable Income | $90,000 | $80,990 |
| Estimated Tax | -$19,588 | -$16,705 |
| Net Pay | $70,412 | $64,286 |
| Superannuation | ||
| Employer SG | $10,350 | $10,350 |
| Salary Sacrifice (Gross) | $0 | $9,010 |
| Contributions Tax (15%) | $0 | -$0 |
| Total Super | $10,350 | $10,350 |
Complete Guide to Healthcare Salary Packaging
What is Healthcare Salary Packaging?
Healthcare salary packaging is a special tax concession provided by the ATO to employees of public hospitals, public ambulance services, and certain not-for-profit organizations. It allows eligible employees to pay for everyday living expenses using pre-tax salary, up to a specific annual limit (cap).
This is one of the most generous tax benefits available in Australia, designed to help the healthcare and charity sectors attract and retain staff.
How It Works
- Eligibility: You must be employed by a Public Benevolent Institution (PBI), Health Promotion Charity (HPC), or Public Hospital.
- Designate Expenses: You nominate expenses like mortgage repayments, rent, or credit card bills to be paid from your salary.
- Pre-Tax Payment: Your employer pays these expenses (or reimburses you) from your gross salary before tax is deducted.
- Tax Savings: You are only taxed on the remaining salary, which can save you thousands of dollars in tax each year.
Key Benefits & Caps
- 🏥 $9,010 Living Expenses CapPackage up to $9,010 of general living expenses (mortgage, rent, etc.) tax-free each year.
- 🍽️ $2,650 Meal EntertainmentAn additional cap for dining out and holiday accommodation.
- 📉 Reduced Taxable IncomeSignificantly lower your taxable income, potentially moving you to a lower tax bracket.
- 💰 Increased Take-Home PayMost employees see a net increase in their pay of $2,000 - $4,000+ per year.
Important Considerations
- Reportable Fringe Benefits: The packaged amount will appear on your income statement as a Reportable Fringe Benefit Amount (RFBA). While not taxed, it is used to calculate HECS/HELP repayments, Medicare Levy Surcharge, and family assistance payments.
- Grossed-Up Value: The caps ($9,010 and $2,650) are based on the "grossed-up" taxable value. This means the actual cash value you can package depends on whether the expenses attract GST.
- FBT Year: The limits reset on 1 April each year. You must use your cap within the FBT year; it does not roll over.
Common Eligible Expenses
- Mortgage or rent payments
- Utilities (electricity, gas, water)
- Groceries and household items
- School fees
- Credit card payments
- Private health insurance
Frequently Asked Questions
Who is eligible for healthcare salary packaging?
This FBT exemption is available to employees of public hospitals, not-for-profit hospitals, and public ambulance services. Private practice doctors and private hospital employees generally do not qualify unless they also work for a public or not-for-profit hospital.
What is the $9,010 cap?
Healthcare professionals can salary package up to $9,010 in living expenses per FBT year (April 1 - March 31) without paying Fringe Benefits Tax. This cap applies to GST-free items. For GST-taxable items, the cap is $8,172.
What expenses can I package?
You can package everyday living expenses including mortgage or rent payments, utilities (electricity, gas, water), groceries, school fees, credit card payments, personal loan repayments, and private health insurance.
Is there an additional cap for meal entertainment?
Yes! Healthcare professionals can package an additional $2,650 per FBT year for meal entertainment and venue hire expenses. This is separate from the $9,010 living expenses cap.