See how much tax you save by salary packaging with a charity, public benevolent institution or public hospital in 2026–27.
Key facts
- Employees of public benevolent institutions and health promotion charities can package up to $15,900 a year tax-free ($30,000 grossed-up FBT cap).
- Public and not-for-profit hospital and ambulance employees can package up to $9,010 a year ($17,000 grossed-up cap).
- Meal entertainment and holiday accommodation can add up to $2,650 a year ($5,000 grossed-up).
- Rebatable employers (some charities and not-for-profits) get a 47% FBT rebate up to a $30,000 grossed-up cap, so packaging there usually saves less.
- Packaged amounts are reportable fringe benefits (grossed up at 1.8868), which count for HECS, Centrelink and Medicare levy surcharge income tests.
Tax saved a year by salary
| Salary | Charity / PBI (full cap + meals) | Hospital (full cap + meals) |
|---|---|---|
| $50,000 | $4,638.58 | $3,140.19 |
| $70,000 | $6,164.23 | $3,856.08 |
| $90,000 | $5,935.98 | $3,731.18 |
| $120,000 | $5,935.98 | $3,731.18 |
| $150,000 | $6,985.98 | $4,547.38 |
2026–27 resident tax rates with the Medicare levy; provider admin fees, GST on some items and HECS-HELP aren't included.
FBT caps for not-for-profit employers
| Employer | Grossed-up cap | Amount you can package |
|---|---|---|
| Public benevolent institution or health promotion charity | $30,000 | $15,900 |
| Public or not-for-profit hospital, or public ambulance service | $17,000 | $9,010 |
| Meal entertainment and holiday accommodation (all) | $5,000 | $2,650 |
Common questions
How much can I salary package at a hospital?
Up to $9,010 a year of living expenses, plus up to $2,650 of meal entertainment.
How much can I salary package at a charity?
At a public benevolent institution or health promotion charity, up to $15,900 a year, plus up to $2,650 of meal entertainment.
How much tax does salary packaging save?
On an $80,000 salary at a charity, packaging the full $15,900 plus meal entertainment saves about $6,014.23 a year, before any provider fees.
Where do the caps come from?
The ATO caps the FBT exemption at $30,000 and $17,000 of grossed-up value; dividing by the 1.8868 gross-up rate gives the amount you can package.
See also the salary sacrifice into super calculator and novated lease calculator.
Source: ATO, FBT rates and thresholds (concessional FBT treatment and type 2 gross-up rate). Checked 22 October 2026.