Work Equipment Salary Packaging Calculator
Calculate tax savings from salary packaging work equipment. See how much you can save on laptops, phones, tablets, tools, and other work gear.
Example: Home Office Setup ($2,000)
See how salary packaging a $2,000 monitor and ergonomic chair setup on a $90,000 salary saves you money:
❌Paying with After-Tax Cash
- Equipment Price:$2,000
- GST (included):$181.82
- Net Cost to You:$2,000
- *You pay the full retail price from your take-home pay.
✓Salary Packaging
- Equipment Price (ex GST):$1,818.18
- GST Savings:-$181.82
- Income Tax Savings:-$627.45
- Net Cost to You:$1,190.73
💰 Result: You save $809.27 on your equipment! 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
$640
per year
Impact on Take-Home Pay
💰 The Magic of Salary Packaging
You get $640 worth of equipment while only reducing your take-home pay by $1,360!
| Component | Current | With Sacrifice |
|---|---|---|
| Gross Salary | $90,000 | $88,000 |
| Taxable Income | $90,000 | $88,000 |
| Estimated Tax | -$19,588 | -$18,948 |
| Net Pay | $70,412 | $69,052 |
| Superannuation | ||
| Employer SG | $10,350 | $10,350 |
| Salary Sacrifice (Gross) | $0 | $2,000 |
| Contributions Tax (15%) | $0 | -$0 |
| Total Super | $10,350 | $10,350 |
Complete Guide to Salary Packaging Work Equipment
What is Work Equipment Packaging?
Salary packaging work equipment allows you to pay for eligible work-related items using your pre-tax salary. This is an ATO-approved way to reduce your taxable income while acquiring the tools you need for your job.
Unlike claiming a tax deduction at the end of the year (where you only get a percentage back), salary packaging gives you the tax benefit immediately in your pay cycle.
How It Works
- Purchase: You buy the eligible work-related item (e.g., a laptop or office chair).
- Claim: You provide the tax invoice to your employer or salary packaging provider.
- Reimbursement: Your employer reimburses you for the cost using funds from your pre-tax salary.
- Tax Savings: Your taxable income for that pay period is reduced by the cost of the item, lowering your tax bill.
Key Benefits
- ⚡ Immediate BenefitGet the tax savings now rather than waiting for your tax return.
- 🛡️ FBT ExemptEligible portable electronic devices and tools of trade are exempt from FBT.
- 💰 GST SavingsSave the 10% GST if your employer is eligible to claim and pass on the credit.
- 🔄 No DepreciationPackage the full cost upfront, avoiding complex depreciation schedules for expensive items.
Key Rules & Eligibility
- Primarily for Work: The item must be used >50% for work purposes.
- One Item Rule: Generally, you can only package one item with a "substantially identical function" per FBT year (1 April to 31 March), unless it's a replacement.
- No Double Dipping: You cannot salary package an item AND claim it as a tax deduction on your tax return.
Common Eligible Items
- Laptops & Computers
- Phones & Tablets
- Monitors & Accessories
- Software & Subscriptions
- Office Furniture
- Professional Tools
Frequently Asked Questions
What equipment can I salary package?
You can salary package any work-related equipment including laptops, computers, phones, tablets, tools, software, office furniture, and accessories. The equipment must be primarily used for work (more than 50% work use).
How does the payment work?
The equipment cost is deducted from your pre-tax salary over time, typically spread over the item's useful life (3-4 years for electronics). You receive the equipment immediately but pay for it gradually through salary deductions.
Can I package multiple items at once?
Yes! You can package multiple work-related items together. For example, you could package a laptop, phone, monitor, and desk chair all at the same time. Each item's cost is deducted from your pre-tax salary.
What if I leave my job?
If you leave your job before the equipment is fully paid off, you'll typically need to pay the remaining balance. Some employers may allow you to take the equipment with you by paying the outstanding amount.