Salary Packaging Queensland Health Guide for 2025

What Queensland Health employees need to know about salary packaging

A salary packaging arrangement may allow an employee to use pre-tax income to pay for some everyday costs. What potential benefits might that arrangement provide someone? By allocating a portion of your income to approved expenses before tax is applied, you may reduce your taxable income and increase your take-home pay. The benefits of salary packaging depend on the details of your employment and whether your employer offers the arrangement.

Fringe benefits tax (FBT)

Fringe benefits encompass some forms of non-cash employee remuneration. Employers may need to pay tax in the form of FBT on these benefits, which is separate from income tax. Some expenses that may be subject to FBT include:

• Novated leasing.
• Gym memberships.
• School fees.
• Car parking.
• Discounted employee loans.

Certain expenses may not be subject to FBT, such as:

• Portable electronic devices.
• Briefcases.
• Superannuation contributions.
• Protective clothing.
• Tools of trade.

Disclaimer: The rules governing FBT are complex. Seek advice from a licensed tax agent to understand how FBT relates to your circumstances. Tax laws are subject to change. Refer to the Australian Taxation Office’s (ATO) guidance.

Tax-free caps for Queensland government employees in healthcare

The ATO permits some eligible public healthcare workers to access certain tax-free caps for salary packaging purposes. Queensland Health workers may be able to salary package specific expenses up to the following caps, as of 2025:

• $9010 for living costs, such as:
  • Mortgage repayments.
  • Rent.
  • Personal loan repayments.
  • Groceries.
  • Utility bills.
• $2650 for meal entertainment, such as:
  • Restaurant dining.
  • Catering hire.
  • Gala or charity dinner attendance.
  • Taxi fares to and from a restaurant.

Eligible expenses within these caps don’t trigger FBT. The caps apply to the FBT year, which runs from 1 April to 31 March of the following year.

Disclaimer: Salary packaging is subject to Australian tax law. Speak with your employer and a licensed tax agent to understand your salary packaging options.

PBI and HPC status

Certain not-for-profit organisations may be considered a Public Benevolent Institution (PBI) or a Health Promotion Charity (HPC). What organisations receive these statuses?

• PBI. A charity whose main purpose is to provide relief for issues such as poverty or illness.
• HPC. A charity that focuses on initiatives designed to prevent or control human diseases.

Charities of these subtypes may access a tax-free living expenses cap of $15,900.

Disclaimer: Charitable organisations are heavily regulated. Your access to the tax-free caps mentioned in this article depends on your employment circumstances and your employer’s charitable status. Seek advice from a qualified tax agent.

What you can salary package as a Queensland Health employee

There are many expenses that may be part of a salary packaging arrangement. How salary packaging may work for you depends on your agreement with your employer. The expenses you might consider include:

Meal Entertainment and Venue Hire ($2,650 per year)

• Restaurant meals and takeaway.
• Café dining and coffee.
• Food delivery services.
• Catering for private events.

Entertainment Benefits ($2,650 per year)

• Concert and theatre tickets.
• Cinema tickets.
• Sporting events.
• Theme parks.
• Streaming services.

Living Expenses ($9,010 total cap includes above)

• Mortgage or rent payments.
• Utility bills.
• Insurance premiums.
• School fees and childcare.
• Gym memberships.
• Professional association fees.
• Self-education expenses.

Novated Car Leasing

Novated leases are a common salary packaging arrangement. Your employer covers lease payments and running expenses with your pre-tax salary. Running expenses could include:

• Fuel.
• Car maintenance.
• Radiator coolant.
• Car detailing.
• Roadside assistance.
• Car insurance.

As your salary packaging provider, FAA handles novated leasing through our streamlined service. Our team can assist you in assessing potential tax savings and organise documentation. Our online system provides simplified reporting for employers and employees.

How much money can you save with Queensland Health salary packaging?

Let’s look at some scenarios that outline the potential savings health workers may receive through salary packaging.

Example 1: Registered nurse

• Salary: $85,000
• Top marginal tax rate: 30%
• Packaging: $11,660
• Estimated annual savings: $3,730 (illustrative only)
• Estimated monthly increase: $310 (illustrative only)

Example 2: Senior medical officer

• Salary: $180,000
• Top marginal tax rate: 37%
• Packaging: $11,660
• Annual savings: $4,547
• Monthly increase: $379

Example 3: Allied health worker with a novated lease

• Salary: $95,000
• Top marginal tax rate: 30%
• Packaging: $24,010 (living expenses + novated lease)
• Annual savings: $8,283
• Monthly increase: $690

Disclaimer: These examples are general in nature and do not take into account your individual circumstances. Actual savings may vary. Please seek personalised advice from a licensed financial adviser or registered tax agent. These examples do not constitute a guarantee of savings.