Work Equipment Salary Packaging Calculator
Calculate tax savings from packaging work equipment.
Calculate tax savings from salary packaging laptops, phones, tablets, tools, and other work equipment. FBT-exempt for items primarily used at work.
Salary Sacrifice
Salary sacrifice amount
Enter the total cost of the equipment you want to package.
One-time amount.
Work equipment packaging
You can package work-related equipment like laptops, phones, tablets, and tools. The item cost is spread for tax purposes, while the salary packaging benefit is reflected up front.
Salary Sacrifice Estimate
Tax saved annually
$582
Take-home drops by $1,236 per year
- Current take-home
- $70,412
- New take-home
- $69,176
- Take-home drop
- -$1,236
- Sacrifice amount
- $2,000
- Effective 38% discount: paying with pre-tax dollars plus the GST saving brings a $2,000 item down to about $1,236.
Equipment Cost Breakdown
Before/After Comparison
Income Breakdown
Take-home
$70,412
Tax
$19,588
Take-home
$69,176
Sacrifice
$2,000
Tax
$19,006
The Magic of Salary Packaging
A $2,000 item effectively costs you $1,236 — that's a 38% discount using pre-tax dollars plus GST savings.
Component Comparison
| Component | Current | With Sacrifice |
|---|---|---|
| Gross Salary | $90,000 | $88,182 |
| Taxable Income | $90,000 | $88,182 |
| Estimated Tax | -$19,588 | -$19,006 |
| Take-home pay | $70,412 | $69,176 |
| Superannuation | ||
| Employer SG | $10,800 | $10,800 |
| Salary Sacrifice (Gross) | $0 | $2,000 |
| Contributions Tax (15%) | $0 | -$0 |
| Total Super | $10,800 | $10,800 |
| Total Package | $81,212 | $79,976 |
Total Package = Take-home pay + Total Super — the full value of your package.
Salary sacrificing into super is taxed at 15%, which is often much lower than your marginal tax rate.
Related tools
Example: Home Office Setup ($2,500, 2025-26 rates)
See how packaging a laptop + monitor + accessories on a $90,000 salary saves you:
✕Paying with After-Tax Cash
- Equipment Cost:$2,500
- GST Savings:—
- Income Tax Savings:—
- Net Cost to You:$2,500
✓Salary Packaging
- Equipment Cost:$2,272.73 (ex GST)
- GST Savings:−$227.27
- Income Tax Savings:−$727.27
- Net Cost to You:$1,545.46
Result: You save $954.54 on a $2,500 work equipment package — a 38% effective discount using pre-tax dollars!
Complete Guide to Work Equipment Salary Packaging
Work equipment salary packaging lets you buy laptops, phones, tablets, tools, and other work-related items using pre-tax salary. The ATO exempts portable electronic devices and tools of trade from FBT when primarily used for work, making this an efficient tax strategy.
Key Benefits
30–45% effective discount
Depending on your marginal tax bracket.
Package multiple items
Combine laptop, phone, monitor, and more.
GST savings
Save 10% GST if your employer passes on the ITC.
Immediate tax benefit
Savings reflected in each pay cycle.
Eligibility:Items must be primarily used for work (generally >50% work use). One laptop/phone per FBT year unless replacing a lost or broken device.
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.
Can I salary sacrifice a laptop for personal use?
No. To qualify for the FBT exemption, the equipment must be primarily used for work (generally more than 50% work use). If the ATO considers the item primarily for personal use, FBT will apply and the tax benefit is lost. Items like gaming laptops or personal phones would not qualify.
How does GST work with salary packaged equipment?
When your employer purchases equipment for salary packaging, they can claim the GST input tax credit (ITC). Most employers pass this saving on to you, reducing the amount deducted from your salary. For example, on a $2,500 laptop the GST component is $227.27 — so only $2,272.73 is deducted from your pre-tax pay. Combined with the income tax saving at your marginal rate, the effective discount can reach 30–45%.
How much does salary packaged equipment actually cost me?
The effective cost depends on your marginal tax rate and whether your employer passes on the GST saving. The total discount is roughly your marginal tax rate plus the 10% GST component — so a mid-income earner in the 30% bracket (plus 2% Medicare) can expect around 32–42% off. Use the calculator above to see your exact effective cost based on your income.
Is salary packaging work equipment worth it?
It usually is for genuine work items. Because the cost comes out of pre-tax salary — and your employer can often pass on the GST credit — the effective discount is roughly your marginal tax rate plus the GST saving, often a third to nearly half off the price. The higher your income, the bigger the benefit. It makes sense when the item is primarily used for work, so it stays FBT-exempt, and you would be buying it anyway. For a personal device that doesn't qualify, FBT applies and the benefit is lost. The calculator above shows your effective cost.
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