Tax Year
Income
Employer Type
Public Benevolent Institutions and NFP healthcare employers qualify for the maximum $15,900 FBT-exempt threshold.
Packaging Amount
Include Meal Entertainment
Additional $2,650 FBT-exempt for meals/venues
Maximise Your Savings
- •Combine with salary sacrifice super — reduces your taxable income further, potentially dropping you to a lower HECS repayment bracket.
- •Use for mortgage or rent — the most popular benefit for employees. Your employer pays your mortgage/rent directly from pre-tax salary.
- •Novated lease — even for-profit employees can use a novated lease with Employee Contribution Method (ECM) to reduce FBT effectively.
- •Reportable Fringe Benefits — amounts above $2,000 are reported on your payment summary and can affect income-tested benefits (e.g. Family Tax Benefit).
Annual Tax Saving
$5,088
Packaging $15,900 · 2025-26 rates · PBI / NFP
Eligibility at a Glance
PBI / NFP Healthcare employer
Max $15,900 FBT-exempt per year
Public Hospital / Ambulance
Max $9,010 FBT-exempt per year
FBT-exempt threshold available
$15,900 per year exempt from FBT
Meal entertainment cap
Additional $2,650 FBT-exempt (toggle to include)
Before vs After Packaging
Key Figures
Tax vs Take-Home Pay Comparison
Your Annual Saving
$5,088
Effective Income Tax Rate
15.2%
was 21.2%
New Taxable Income
$69,100
reduced from $85,000
About PBI / NFP Packaging
Public Benevolent Institutions and NFP healthcare employers qualify for the maximum $15,900 FBT-exempt threshold.
Typical employers:
- Charities & not-for-profits
- Community health services
- Disability support providers
- Aged care organisations
- Religious institutions
What can be packaged?
Mortgage or rent repayments, credit card payments, general living expenses, council rates, and utility bills. Packaged amounts are paid directly by your employer from your pre-tax salary.
Calculations are estimates only using ATO published tax rates. Results do not account for reportable fringe benefits affecting Centrelink, Medicare safety net, or child support. FBT exempt thresholds are set by the ATO and may change. Always confirm with your HR team or a registered tax agent. Terms of Use.
What is salary packaging in Australia?
Salary packaging (also called salary sacrifice) is an arrangement where your employer pays for certain benefits on your behalf using your pre-tax salary. This reduces your taxable income, which means you pay less income tax. For NFP and healthcare workers, up to $15,900 of benefits per year are completely exempt from Fringe Benefits Tax (FBT), making the saving substantial.
How much can I save through salary packaging?
Savings depend on your salary and marginal tax rate. At $85,000, packaging the full $15,900 FBT-exempt amount typically saves around $4,800–$5,500 per year in income tax. The higher your marginal rate, the greater the saving. Workers on $100,000+ can save over $6,000 annually.
Who is eligible for FBT-exempt salary packaging?
Employees of Public Benevolent Institutions (PBIs), NFP health organisations, and public hospitals are the primary beneficiaries. PBI status is granted by the ATO and typically covers registered charities, disability and aged care providers, and community health services. Private hospitals and for-profit healthcare companies generally do not qualify for the exempt threshold.
What is the $2,650 meal entertainment benefit?
Eligible employees can also access a separate $2,650 FBT-exempt cap for meal entertainment — restaurant meals, takeaway food, and venue hire for social events. This is in addition to the $15,900 general living expenses cap, not part of it. It cannot be used for mortgages or rent, only for qualifying entertainment expenses.