Salary Packaging for Nurses and Midwives in Australia

Nurses and midwives in public hospitals are among the biggest users of salary packaging in Australia. With a $17,000 grossed-up cap (roughly $9,000 of cash salary), a typical nurse can lower their tax bill by a few thousand dollars a year.

How much can a nurse save?

A registered nurse earning $88,000 is in the 30% tax bracket plus 2% Medicare, so each packaged dollar saves about 32 cents. Packaging the full cash limit of about $9,009 saves around $2,880 a year before provider fees. Enrolled nurses and graduates on lower salaries save slightly less per dollar, but the saving is still worthwhile once they are above $45,000.

What do nurses usually package?

Most nurses package their largest predictable expenses so the full cap is used evenly across the year:

  • Rent or mortgage repayments
  • Car loan repayments and running costs
  • Credit card payments
  • Meal entertainment card for dining out (separate cap)

Things to check with your health service

Each health service or state government has its own salary packaging provider and rules. Confirm the provider's fees, how often you can change your packaging amount, and whether packaged amounts are paid by card, direct debit or reimbursement.

Watch the reportable fringe benefits amount

Packaged benefits are reported on your income statement as a reportable fringe benefits amount (RFBA) once the grossed-up value exceeds $2,000. RFBA does not raise your income tax but it counts toward income tests such as HELP repayments and the Medicare levy surcharge. See our guide to RFBA.

Calculate your saving

Frequently asked questions

How much can a nurse salary package?

Public hospital nurses can package up to $17,000 grossed-up a year, which is about $9,009 of cash salary, plus a separate $2,650 grossed-up cap for meal entertainment.

Does salary packaging reduce my nursing super?

Employer super is calculated on your salary before sacrifice, so packaging living expenses does not reduce your super guarantee.

Sources and review

Rates are based on information published by the Australian Taxation Office, including individual income tax rates and fringe benefits tax rates and thresholds. Figures were last reviewed in October 2026. See our methodology for assumptions and limits. This is general information, not tax advice.

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