Public hospital salary packaging calculator
Public hospital and ambulance employees can package up to $17,000 (grossed-up) of everyday expenses FBT-free, plus a separate $2,650 meal entertainment and holiday accommodation cap. Use the calculator to see your personal tax saving.
- Cap: $17,000 grossed-up
- ≈ $9,009 cash limit
- 2026–27 rates
Your estimated savings
Net tax saving per year
$0
| Before | After | |
|---|---|---|
| Taxable income | ||
| Tax + Medicare | ||
| Take-home pay (yearly) | ||
| Take-home (fortnightly) | ||
| Tax saved |
Take-home “after” is what you keep once your packaged expenses are paid from pre-tax pay; you would otherwise pay those expenses from take-home. Estimate only, based on 2026–27 resident rates.
Who can use this calculator?
This calculator is designed for nurses, doctors, allied health staff, paramedics and other employees of public hospitals and public ambulance services. If your employer is endorsed as FBT-exempt, you can ask your payroll team or salary packaging provider to set up an arrangement so eligible expenses are paid from your pre-tax salary.
What can be packaged?
- Rent or mortgage repayments
- Credit card repayments and household bills
- Groceries, school fees and childcare
- Car costs and novated leases
- Meal entertainment and holiday accommodation (separate $2,650 cap)
How the cap works
The $17,000 cap is measured on the grossed-up taxable value of the benefits using the Type 2 gross-up rate of 1.8868. Dividing by that rate gives roughly $9,009 of cash salary you can sacrifice before FBT applies. Amounts above the cap are generally subject to FBT, and the calculator limits your result to the cap.
Example tax savings by salary
Maximum packaging for $10,413 a year (living expenses plus meal entertainment), 2026–27 resident rates, Medicare levy included, before any provider fee.
| Salary | Marginal rate | Tax saved / year | Per fortnight |
|---|---|---|---|
| $55,000 | 32% | $3,270 | $126 |
| $75,000 | 32% | $3,332 | $128 |
| $95,000 | 32% | $3,332 | $128 |
| $130,000 | 32% | $3,332 | $128 |
| $180,000 | 39% | $4,061 | $156 |
Roles this applies to
- Registered and enrolled nurses
- Midwives
- Doctors and registrars
- Paramedics
- Physiotherapists, pharmacists and other allied health
- Hospital administration and support staff
Worked scenario
A registered nurse on $88,000 pays rent of $360 a week ($18,720 a year) and a $200 a fortnight car loan. By paying part of that from pre-tax pay up to the cap, the nurse reduces their taxable income and keeps more of each pay.
Practical tips
- Rent, mortgage repayments and credit card bills are the most popular items to package because the spending is predictable all year.
- Check whether your employer's payroll adjusts packaged amounts each fortnight or lets you use a card or reimbursement.
- If you work for more than one hospital, ask each payroll team how the shared cap is tracked. The cap is per employee, not per job.
- The FBT year runs 1 April to 31 March, so your cap resets in April even though the tax year resets in July.
Read more in our salary packaging guide or browse all guides.
Frequently asked questions
How much can I salary package as a public hospital employee?
The FBT-exempt cap is $17,000 a year in grossed-up terms, which is roughly $9,009 of your pre-tax cash salary. A separate $2,650 grossed-up cap (about $1,404 cash) applies to meal entertainment and holiday accommodation.
How much tax can I save by salary packaging?
Your saving is roughly your marginal tax rate plus the 2% Medicare levy, multiplied by the amount you package. For someone earning $90,000 that is 32 cents in every dollar packaged. The calculator above shows your exact figure.
Is the saving real if I still pay for the expense?
Yes. You would have paid for rent, groceries or bills from your after-tax pay anyway. Paying them from pre-tax pay means the tax office takes less, and the difference is your net benefit, less any provider admin fee.
Does salary packaging reduce my superannuation?
Since 1 July 2020 employers must calculate super on your salary before sacrifice, so packaging living expenses does not reduce your employer super guarantee. Check your employment agreement, as the rules differ for some older arrangements.
What is the reportable fringe benefits amount (RFBA)?
If the grossed-up taxable value of your benefits exceeds $2,000 in an FBT year, the amount appears on your income statement as a reportable fringe benefits amount. It does not increase your income tax, but it counts toward income tests such as the Medicare levy surcharge, HELP repayments and some government benefits.
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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