Salary Sacrifice · Calculator

Salary sacrifice calculator — non-super 2026-27

Calculate the real tax saving from salary sacrificing a car, laptop, phone, or other item — including FBT, Reportable Fringe Benefits, and impacts on HELP repayments and Medicare Levy Surcharge.

Novated car leaseFBT-exempt devicesRFBA & HELP impact
01 —INPUTS

Sets the income tax, HELP, MLS, FBT and LCT settings used.

Your total annual salary before tax

Purchase price including GST

Primarily for work use and within the one-similar-item rule or an exception

Check whether your employer quote uses the GST-exclusive item cost

Non-super salary packaging can reduce the statutory OTE base; your agreement may preserve it

02 —RESULTS
Awaiting input

Enter your salary and item details to see savings

Edit inputs ↑
FAQ
What is salary sacrifice for non-super items?
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.
Which items are FBT-exempt when salary sacrificed?
Work-related portable electronic devices (laptops, tablets, phones) can be FBT-exempt if primarily used for work and are generally limited to one item per FBT year with a substantially identical function. Small-business and replacement-item exceptions can apply. Tools of trade can also be exempt.
How does a novated car lease work with salary sacrifice?
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.
What is the Employee Contribution Method (ECM)?
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.
Does salary sacrifice reduce my super guarantee?
It can. ATO guidance says non-cash fringe benefits sacrificed from salary are generally excluded from Ordinary Time Earnings for statutory super guarantee purposes. The January 2020 protection applies to amounts sacrificed into super, not cars, property or expense payments. Some employment agreements preserve SG on your pre-package salary, so check your agreement or quote.
What is a Reportable Fringe Benefits Amount (RFBA)?
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.
How does RFBA affect my HELP/HECS repayments?
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.
Are school fees worth salary sacrificing?
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.

Packaging a car specifically? The Novated Lease Calculator compares the pre-tax deduction, FBT and Employee Contribution Method against buying the same car outright — for petrol, hybrid and EV vehicles.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

Estimates annual tax and value impact using the selected year's tax, HELP, MLS, SG and FBT settings. Work-item results ask whether the ATO exemption conditions and passed-through GST credit apply. HELP repayments reduce debt and are not a tax cost. Car results use your quoted annual pre-tax deduction and FBT base value, assume the car is available for the full FBT year, and exclude provider fees or quote terms not entered here.

Related guides

FBT Electric Car Discount Reform — Budget 2026 Phased Transition to 1 April 2029Budget 2026 transitioned the FBT electric car exemption to a permanent 25% discount (15% statutory rate) from 1 April 2029. Phased arrangements: EVs ≤$75,000 keep 100% discount until 1 April 2029; EVs above $75k up to the fuel-efficient LCT threshold get a new 25% discount from 1 April 2027.EV Novated Lease Tax Savings Explained (Australia 2025-26)How salary packaging an electric vehicle through a novated lease works, who is eligible for the FBT exemption, and a worked example showing annual tax savings.FBT on Company Cars, Parking and Entertainment 2025-26How fringe benefits tax applies to company cars, car parking and entertainment in 2025-26, including calculation methods, exemptions and worked examples.

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