Salary sacrifice calculator — non-super 2026-27

Salary sacrifice (or salary packaging) for non-super items means your employer buys something for you using your pre-tax salary. This reduces your taxable income, but may trigger Fringe Benefits Tax (FBT) depending on the item. Common items include novated car leases, laptops, phones, and tools of trade.

Work-related portable electronic devices (laptops, tablets, phones) can be FBT-exempt if primarily used for work. Up to 31 March 2027 the exemption covers one item per FBT year with a substantially identical function, with small-business and replacement-item exceptions. For FBT years starting on or after 1 April 2027 that per-year limit goes, but an item provided to you under a salary packaging arrangement is not an eligible work related item, so a salary-sacrificed laptop or phone would no longer be exempt. Tools of trade can also be exempt, with the same salary packaging exclusion from that date.

Under a novated car lease, your employer leases a car on your behalf and deducts packaged costs from your salary. Under the statutory formula, the annual taxable value is generally 20% of the car's FBT base value, adjusted for days available and employee contributions. This calculator assumes a full FBT year; use the annual pre-tax deduction and FBT base value shown in your provider quote.

ECM is where you contribute from your after-tax pay an amount equal to the FBT taxable value of your car benefit. This reduces the FBT taxable value to zero, eliminating FBT. However, this post-tax contribution reduces your take-home pay. The calculator compares both scenarios so you can see which is better.

It can. ATO guidance says amounts sacrificed to non-cash employee benefits — including fringe benefits and exempt fringe benefits — are not qualifying earnings, the base the statutory super guarantee is calculated on since 1 July 2026. Amounts sacrificed into super are treated the other way: they stay in qualifying earnings, so sacrificing to super does not reduce your SG. That protection applies to super, not cars, property or expense payments. Some employment agreements preserve SG on your pre-package salary, so check your agreement or quote.

If the total taxable value of reportable fringe benefits is more than $2,000 in an FBT year, the employer reports a Type 2 grossed-up RFBA on the income statement. RFBA is not taxed directly but is used in HELP, MLS and some government income tests.

RFBA is included in HELP repayment income. For 2026-27, the marginal HELP schedule starts above $69,528; select the financial year in the calculator because thresholds differ.

Generally no. School fees have no general work-item exemption and can attract FBT. The grossed-up FBT cost commonly exceeds the income tax saving, resulting in no net benefit or a net cost. Concessional treatment can differ for eligible not-for-profit employers, so use the employer's actual packaging quote.