You may have thought every year that there must be a way to reduce your taxes. The good news is that the government does provide a way to restructure your salary for a tax benefit. It’s called salary packaging. By using pre-tax salary to pay for non-cash benefits, you may reduce your taxable income. This raises some key questions:
How much could I save on tax?
Am I eligible?
What’s the salary packaging process?
Who could handle the process for me?
If those questions resonate with you, you’re in the right place. We put this guide together to support your decision-making.
Key takeaways
- Salary packaging may provide tax benefits under specific circumstances, depending on your individual situation.
- Fringe benefits tax may apply to certain expenses.
- Queensland Health workers may be able to access tax-free caps for salary packaging.
- Specific charitable organisations may have access to higher tax-free caps.
- Health workers may be able to salary package a range of expenses across different areas.
- Case studies show potential savings health workers may receive.
- Here's the step-by-step guide to using FAA's salary packaging services.
- FAA may assist you with assessing your salary packaging options.
What Queensland Health employees need to know about salary packaging
A salary packaging arrangement, also known as total remuneration packaging, 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, which could affect your take-home pay depending on your individual tax position and circumstances. 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. This 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. FBT-exempt benefits may include:
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
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
The ATO permits organisations with certain charitable statuses to access a higher tax-free cap. Certain not-for-profit organisations may be considered a Public Benevolent Institution (PBI) or a Health Promotion Charity (HPC). Which 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.
Who Can Access QLD Health Salary Packaging
Most employees may be able to access QLD health salary packaging, as long as it’s offered by their employer. This includes:
Full-time employees
Part-time employees
Casual employees
If you have more than one job, you may be able to salary package in both workplaces, depending on the terms of your employment.
Who isn't eligible?
Employers aren’t automatically required to offer salary packaging arrangements. If your employer chooses not to offer it as a workplace benefit, you’ll be ineligible. An employer may also restrict certain benefits from being packaged.
An employer may not offer salary packaging to particular employees. For example, a business may decide not to offer it to casual employees who:
Have worked for the business for less than a year.
Are not expected to continue their employment for another 12 months.
What you can salary package as a Queensland Health employee
There are many expenses that may be part of a QLD health 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 provide general information on salary packaging and assist with documentation. For personal financial advice, we can refer you to an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). Our online system provides simplified reporting for employers and employees.
Credit assistance for novated leasing is provided by FAA Group under its Australian Credit Licence. For personal financial advice, we can refer you to an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892).
Reportable fringe benefits
Employers must report an employee’s reportable fringe benefit amount (RFBA) to the ATO if it exceeds $2000 in an FBT year. The RFBA is grossed up to reflect the pre-tax income you’d need to earn to purchase the benefits yourself at the highest marginal tax rate.
Certain benefits aren’t reportable, including:
Remote area housing assistance.
Benefits that ensure the employee’s security and safety during their job.
Travel expenses for a remote area worker visiting a major population centre.
How much money can you save with Queensland Health salary packaging?
Here’s the part everyone wants to know. How much can I save? We can’t provide information for your specific situation. There are a lot of factors that go into how salary packaging influences your tax burden. However, you may be able to get a general idea of salary packaging’s impact. First, we need to discuss a matter that affects millions of Australians: student debt.
HECS-HELP debt implications
The Australian government may offer some financial support to certain students. If you’ve been through higher education, or are planning to, you’ve likely heard of HECS-HELP. As you can probably gather from the acronym, there are two parts:
Higher Education Contribution Scheme (HECS).
Higher Education Loan Program (HELP). This is the broader initiative that contains HECS.
The government may be prepared to cover a portion of a student’s tuition fees. But it expects the student to contribute. A HECS-HELP loan covers an eligible student’s contribution. Students with a HECS-HELP debt must make repayments once certain conditions are met. Compulsory payments begin once the individual’s income exceeds a threshold. These are the thresholds and repayment rates for 2025-26:
| $0 – $67,000 | Nil |
|---|---|
|
$67,001 – $125,000 |
15c for each $1 over $67,000 |
|
$125,001 – $179,285 |
$8,700 plus 17c for each $1 over $125,000 |
|
$179,286 and over |
10% of your total repayment income |
Your salary packaging agreement may have important implications for your HECS-HELP debt. To calculate your repayments, the following sources are considered part of your income:
Taxable income.
Reportable fringe benefits. This applies regardless of your employer’s exemption status.
Reportable superannuation contributions.
Here’s a speculative case study to illustrate how salary packaging may impact your HECS-HELP repayments.
Aged care support worker
Salary: $75,000
Top marginal tax rate: 30%
Packaging: $15,900
HECS-HELP debt: $35,000
The grossed-up taxable value of the packaged benefits is $30,000. The employee’s HECS-HELP repayment income may be calculated using the following steps:
Taxable income – value of packaged benefits ($75,000-$15,900= $59,100).
Reduced taxable income + Grossed-up reportable fringe benefits ($59,100+$30,000=$89,100).
HECS-HELP repayment income= $89,100.
An income of $89,100 falls into the $67,001 – $125,000 bracket. This means the repayment will be 15c for every dollar over $67,000. The repayment amount is calculated as follows:
$89,100 – $67,000= $22,100
$22,100 x 15%= $3315
Without salary packaging, the employee’s repayment would be calculated as:
$75,000-$67,000= $8000
$8000 x 15%= $1200
This case’s salary packaging arrangement increased the employee’s HECS-HELP repayment by $2115.
Note: FAA consultants provide general information only. Financial advice is provided by authorised representatives of Lifespan Financial Planning Pty Ltd (AFSL 229892). Credit assistance is provided by FAA Group under its Australian Credit Licence.
Disclaimer: The figures used in this hypothetical case study are illustrative only. They do not account for your personal circumstances. Actual results may vary. You may wish to seek advice from a licensed financial adviser and a registered tax agent. This case study does not guarantee any outcome.
Hypothetical case studies
Example 1: Registered nurse
Salary: $85,000
Top marginal tax rate: 30%
Packaging: $11,660
- Approximately $3,730 per year (illustrative only, based on general tax rates. Actual outcomes depend entirely on your individual circumstances and require advice from a registered tax agent.)
Estimated monthly increase: $310 (illustrative only. Actual outcomes depend on your circumstances.)
Example 2: Senior medical officer
Salary: $180,000
Top marginal tax rate: 37%
Packaging: $11,660
- Approximately $4,547 per year (illustrative only, based on general tax rates. Actual outcomes depend entirely on your individual circumstances and require advice from a registered tax agent.)
Estimated monthly increase: $379 (illustrative only. Actual outcomes depend on your circumstances.)
Example 3: Allied health worker with a novated lease
Salary: $95,000
Top marginal tax rate: 30%
Packaging: $24,010 (living expenses + novated lease)
- Approximately $8,283 per year (illustrative only, based on general tax rates. Actual outcomes depend entirely on your individual circumstances and require advice from a registered tax agent.)
Estimated monthly increase: $690 (illustrative only. Actual outcomes depend on your situation.)
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.
Use FAA’s free salary packaging calculator to see general estimates of potential tax impacts. The calculator provides general information only and does not constitute financial or tax advice. For advice tailored to your circumstances, consult a licensed financial adviser or registered tax agent.
How FAA makes salary packaging simple for Queensland Health employees
Here’s a step-by-step guide on how FAA may assist you with salary packaging.
Step one: Eligibility check
We’ll provide general information about salary packaging eligibility criteria for Queensland Health employees. For advice about your specific eligibility and circumstances, consult a licensed financial adviser or registered tax agent.
Step two: Expense review
We can provide general information about common expense categories that may be eligible for salary packaging. For advice about which expenses suit your circumstances, consult a licensed financial adviser or registered tax agent.
Step three: Application setup
Our experienced team can take care of the paperwork and maintain accurate reporting. We will liaise with Queensland Health payroll to assist with the administrative setup. Compliance with ATO requirements depends on your individual circumstances and current tax law. For tax advice, consult a registered tax agent.
Step four: Claim submission
You can easily submit receipts through our online platform or mobile app. We focus on fast processing for effective service.
Step five: Ongoing support
We take care of administrative duties on an ongoing basis. We can help track your arrangement and provide reminders about annual caps. You remain responsible for ensuring compliance with ATO requirements. For tax advice, consult a registered tax agent. Payroll and ATO queries can be addressed by our team or referred to a registered tax agent as required. You will receive regular updates through statements, so you can track your estimated savings.
Why Queensland Health employees choose FAA
Our team can provide general information about salary packaging administration. Information about tax exemptions and how they apply to your circumstances must be obtained from a registered tax agent. Personal financial advice is only provided by a licensed financial adviser. Tax advice must be obtained from a registered tax agent. Our online portal supports our services through an easy interface. It facilitates salary packaging through functions, such as:
24/7 access
A mobile app to make claims
Automated cap reminders
Digital receipt storage
Real-time balance tracking
FAA’s team has a broad knowledge base. They can provide general information on salary packaging and refer you to licensed advisers for personal financial, legal, or tax advice.
For example, some employees consider salary packaging as part of their broader financial planning. Financial advice about retirement planning is provided by authorised representatives of Lifespan Financial Planning Pty Ltd (AFSL 229892). Credit assistance, including novated leasing, is provided by FAA Group under its Australian Credit Licence. FAA consultants provide general information only.
Frequently asked questions
Does salary sacrificing affect my superannuation guarantee?
No, it doesn’t. If you salary sacrifice into your superannuation, your employer is still required to pay your full superannuation guarantee of 12% of your gross salary.
What happens if I leave Queensland Health?
If your employment ends, your current salary packaging arrangement with this employer will cease. Any remaining funds or benefits can usually be transferred to a new salary packaging provider, as long as your new employer offers the same type of salary packaging benefit and accepts the transfer. If you have arranged your salary packaging through us, we will help you finalise your account and, where possible, assist with transferring eligible funds to your new provider.
Can my partner also salary package?
Your salary packaging arrangement does not affect your partner’s ability to salary package. Your partner’s options for salary packaging will depend on their employer and financial circumstances.
Does salary packaging impact child support?
Child support assessments account for your taxable income and reportable fringe benefits. If this increases your adjusted income, your child support payments may increase. If you’re receiving child support payments, your entitlements may decrease.
Can salary packaging effectively grow superannuation?
An effective salary sacrifice arrangement may offer a way for employees to grow their superannuation, depending on their tax position. Other methods, such as super co-contributions, may be more beneficial for employees in lower income tax brackets.
Note: For advice about your specific circumstances, please consult a licensed adviser or registered tax agent.
From our clients
Disclaimer: The following feedback represents individual experiences and opinions. Results may vary, and these testimonials do not constitute a guarantee of outcome.
Disclaimer: These testimonials relate to administrative assistance and general information only. They do not constitute or imply the provision of personal financial, tax, or credit advice.
Understand Your Salary Packaging Options
Salary packaging may offer benefits to eligible Sunshine Coast health workers. Using pre-tax income to cover everyday expenses may affect your tax position, depending on your individual circumstances. For advice about potential tax impacts, consult a registered tax agent. A licensed financial adviser or registered tax agent can help you assess your options. The information provided is general in nature. It does not constitute personal financial advice.
Explore your salary packaging options using our free calculator, or contact us for general information. For advice tailored to your circumstances, we can refer you to a licensed adviser. Please note: initial consultations cover general information only and do not constitute personalised financial or tax advice. The calculator provides estimates only.
