If you work for a public or not-for-profit hospital, ambulance service or charity, you can package living expenses tax-free. See your real benefit — including the reportable-benefit effect on HECS that most calculators miss.
1
Your details
Add meal entertainment ($2,650)
I have a HELP/HECS debt
2
Your benefit
Extra in your pocket (year)
$0
Take-home without packaging
Take-home with packaging
Income tax + Medicare saved
HELP change (reportable benefit)
Reportable fringe benefit (grossed up)
Common questions
Who can salary package tax-free?
Employees of public and not-for-profit hospitals and ambulance services (up to $9,010) and of registered charities / public benevolent institutions and health-promotion charities (up to $15,900), plus an extra $2,650 for meal entertainment. Private-sector employees generally cannot.
How does packaging affect my HECS?
The packaged amount is a reportable fringe benefit. It is grossed up (by 1.8868) and added to your HELP repayment income — so while packaging cuts your income tax, it can raise your compulsory HECS repayment. This tool accounts for that.
Does the cap reset each year?
Yes, on 1 April — the FBT year runs 1 April to 31 March, separate from the tax year. Unused cap does not roll over, so it is worth packaging the full amount each FBT year.
What can I package?
Typically everyday living expenses like rent or mortgage, utilities, groceries and insurance, plus separate meal entertainment. Your employer's salary packaging provider sets the exact list and administers it.