Phone & iPhone Salary Sacrifice Calculator
Calculate tax savings from salary packaging a work phone. See how much you can save on iPhone, Samsung, Google Pixel, and other smartphones.
Example: iPhone 15 Pro ($1,849)
See how salary packaging an iPhone 15 Pro on a $90,000 salary saves you money:
❌Paying with After-Tax Cash
- Phone Price:$1,849
- GST (included):$168.09
- Net Cost to You:$1,849
- *You pay the full retail price from your take-home pay.
✓Salary Packaging
- Phone Price (ex GST):$1,680.91
- GST Savings:-$168.09
- Income Tax Savings:-$580.07
- Net Cost to You:$1,100.84
💰 Result: You save $748.16 on an iPhone 15 Pro! That's a 40% discount by paying with pre-tax salary and claiming the GST input tax credit.
Salary Sacrifice Calculator
Calculate the tax benefits of salary packaging work equipment like laptops, phones, and tools.
Enter the total cost of equipment (e.g., laptop, phone). The calculator shows the annual tax impact.
💡 Work Equipment Packaging
You can salary package work-related equipment like laptops, phones, tablets, and tools. The cost is spread over the item's useful life, but you get the tax benefit immediately!
"Salary sacrificing into super is taxed at 15%, which is often much lower than your marginal tax rate."
Tax Saved
$480
per year
Impact on Take-Home Pay
💰 The Magic of Salary Packaging
You get $480 worth of equipment while only reducing your take-home pay by $1,020!
| Component | Current | With Sacrifice |
|---|---|---|
| Gross Salary | $90,000 | $88,500 |
| Taxable Income | $90,000 | $88,500 |
| Estimated Tax | -$19,588 | -$19,108 |
| Net Pay | $70,412 | $69,392 |
| Superannuation | ||
| Employer SG | $10,350 | $10,350 |
| Salary Sacrifice (Gross) | $0 | $1,500 |
| Contributions Tax (15%) | $0 | -$0 |
| Total Super | $10,350 | $10,350 |
Complete Guide to Phone Salary Packaging
What is Phone Salary Packaging?
Phone salary packaging (or salary sacrifice) is an ATO-approved arrangement where you pay for a mobile phone using your pre-tax salary rather than your take-home pay. Because the cost is deducted before tax is calculated, you lower your taxable income and pay less tax overall.
This benefit is classified as an Exempt Benefit for most employers, meaning it generally doesn't attract Fringe Benefits Tax (FBT) if the phone is primarily used for work purposes.
How It Works
- Purchase or Lease: You buy the phone outright or enter a lease agreement.
- Agreement: You set up a salary sacrifice agreement with your employer.
- Deduction: Your employer deducts the cost (or lease payments) from your gross salary before tax is taken out.
- Tax Savings: You are taxed on the remaining lower salary, reducing your tax bill.
- GST Credit: Your employer may claim the GST Input Tax Credit (ITC) and pass this saving on to you, effectively saving you another 10% on the purchase price.
Key Benefits
- 📉 Income Tax SavingsSave up to 47% (depending on your tax bracket) by paying with pre-tax dollars.
- 🏷️ GST SavingsSave the 10% GST on the purchase price if your employer passes on the ITC.
- 📱 Latest TechUpgrade to the latest iPhone or Android device more affordably.
- 📦 Bundle AccessoriesPackage cases, chargers, and even your monthly phone plan.
Key Considerations & Eligibility
- Work Use Test: The phone must be primarily for use in your employment (generally interpreted as >50% work use).
- One Phone Rule: Typically, you can only package one phone at a time, unless you can prove the need for multiple devices.
- Employer Policy: Not all employers offer salary packaging for portable electronic devices. Check with your HR department.
- Ownership: Clarify if you own the phone immediately or at the end of a lease term.
Popular Phone Options
iPhone 15
Latest iPhone with great features
~$1,499
iPhone 15 Pro Max
Premium flagship iPhone
~$2,199
Samsung Galaxy S24
Flagship Android phone
~$1,399
Google Pixel 8 Pro
Google's premium phone
~$1,699
Frequently Asked Questions
Can I salary package any phone?
You can salary package phones that are primarily used for work purposes. This includes iPhones, Samsung Galaxy phones, Google Pixels, and other smartphones. The phone must be used more than 50% for work to qualify.
How much does a typical phone cost to package?
Work phones typically range from $800 to $2,500. Mid-range phones cost around $800-$1,200, flagship phones like iPhone 15 Pro or Samsung S24 Ultra cost $1,500-$2,500.
Can I package my phone plan as well?
In most cases, yes! You can package both the phone hardware and your monthly phone plan costs if they're work-related. This can include data, calls, and text messages used for work purposes.
What about phone accessories?
Yes, you can package work-related phone accessories like cases, screen protectors, car mounts, charging cables, wireless chargers, and headphones/earbuds used for work calls.