How much can I salary package in the not-for-profit sector?

Eligible charity and public-benevolent-institution employees can package about $15,900 of living expenses a year free of Fringe Benefits Tax; public and not-for-profit hospital and ambulance employees can package about $9,010. These are 'grossed-up' caps of $30,000 and $17,000 respectively. You can usually also package meal-entertainment and a novated lease on top.

How much tax does salary packaging save?

Packaging takes the amount from your pre-tax salary, so you effectively save tax at your marginal rate on that amount. Packaging the full $15,900 cap at a 32% marginal rate saves around $5,000 a year. The higher your marginal rate, the bigger the saving — which is why it's so valuable for NFP and health workers.

Does salary packaging affect anything else?

Yes. Packaging lowers your taxable income but the packaged amount is usually 'reportable', so it can affect the Medicare Levy Surcharge, HECS-HELP repayments, family payments and the private health rebate. Often this works in your favour, but check your situation. Packaging providers also charge a small admin fee.

Salary Packaging Calculator (NFP & Health)

If you work for a charity, hospital or other not-for-profit, salary packaging can save you thousands. Work out the tax you'd save by packaging living expenses up to the FBT-exempt cap.

Last verified: 5 May 2026

How much does NFP salary packaging save?

Packaging takes money from your pre-tax pay, so you save tax at your marginal rate on it. Charity workers can package ~$15,900, hospital workers ~$9,010 — FBT-free. Source: ATO.

Worked example. On $85,000, packaging the full $15,900 cap saves roughly $5,000 in tax — money straight back in your pocket each year, on top of any novated lease or meal-entertainment packaging.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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Salary Packaging Calculator (NFP & Health)

How much does NFP salary packaging save?

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