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Free calculator 2026–27 rates

Teacher salary packaging calculator

Estimate what salary packaging is worth at a Catholic or independent school, or what salary-sacrificing super saves in a government school, after tax.

⚙Your details

Where do you teach?

Salary

Many Catholic and independent schools pay at or near the government scale. Enter your salary if yours differs.

$

Taxable value. The rebate cap is $30,000 grossed-up, about $15,900 of actual spending (living expenses card, mortgage or rent).

$

A separate $5,000 grossed-up cap, about $2,650 of spending. Not reportable on your income statement.

Who pays the (rebated) FBT?

$

Usually taken from your pre-tax pay. Check your provider's fee schedule.

Better off each year from packaging

−$75

−$3 a fortnight · $92,882 salary · marginal rate 32% incl. Medicare

Take-home before

$2,794

Per fortnight

Take-home after

$2,179

Cash pay per fortnight

Benefits paid tax-free

$15,899

Bills paid from your package

FBT charged to you

$7,473

After the 47% rebate

What this means

You give up $23,492 of pre-tax salary ($15,899 of benefits, $7,473 FBT, $120 admin fee). Tax is worked out on the lower salary, so your cash pay falls by less than the benefits you receive. At your income the FBT and fees cancel out the tax saved, so packaging doesn't help: you'd be $75 worse off.

Most Catholic and independent schools are FBT-rebatable employers (not FBT-exempt like charities and hospitals): they pay FBT at a 47% discount on up to $30,000 grossed-up per employee. If the school passes that FBT on to you, packaging mainly pays off in the 37% bracket and above. If the school absorbs it, almost everyone gains. Ask your school or provider which applies.

ScenarioCash take-homeBenefitsHELPGain / yearGain / fn
No packaging$72,640$0$0$0$0
Packaging, FBT charged to you$56,665$15,899$0-$75-$3
Packaging, school absorbs FBT$61,747$15,899$0$5,006$193

Knock-on effects: HELP, Medicare levy surcharge and Centrelink

  • HECS-HELP. Your income statement will show reportable fringe benefits of about $29,998 (the grossed-up value, not what you spent). That's added to your HELP repayment income, $99,389. If you have a HELP debt, tick the box to see the effect.
  • Medicare levy surcharge. MLS income adds back reportable fringe benefits and reportable super, so packaging doesn't lower it: about $99,389 after packaging vs $92,882 before. Without private hospital cover, singles pay the surcharge above $105,000 in 2026–27.
  • Centrelink and family payments. Family Tax Benefit, the Child Care Subsidy and similar tests use adjusted taxable income, which also includes reportable fringe benefits and reportable super. Packaging won't increase those payments, and the grossed-up figure can reduce them.

Estimates for an Australian resident for 2026–27, single, with salary as the only income. Assumes a rebatable employer, type 2 gross-up (1.8868), the 47% FBT rate and rebate, and that the full rebated FBT is either charged to you or absorbed. FBT years run 1 April to 31 March, so caps may straddle two tax years. The FBT caps are from ATO guidance that hasn't been re-checked this year. Whether you can package, and how, depends on your school's FBT status (its ACNC and ATO endorsement) and the provider's rules, so confirm before signing up. Not financial advice. Pay data: Crown Employees (Teachers in Schools and Related Employees) Salaries and Conditions Award 2024, verified 16 October 2026.

In short

Most Catholic and independent schools are FBT-rebatable employers, so teachers there can package benefits with a 47% FBT rebate on up to $30,000 grossed-up each year. Government school teachers don't get that concession, but can salary sacrifice super: at NSW Step 7, $5,000 of sacrifice costs about $3,400 in take-home and adds $4,250 to super.

How to use the salary packaging calculator

  1. 1

    Choose your school type

    Pick government, Catholic or independent. This decides which packaging options apply to you.

  2. 2

    Enter your salary

    Pick your state and step, or type your salary if you're on a school-specific scale.

  3. 3

    Add what you'd package

    For non-government schools, enter the amount you'd package for everyday expenses. For any school, enter extra salary sacrifice into super.

  4. 4

    Add provider fees

    Packaging providers usually charge an admin fee. Enter it so the saving is realistic.

  5. 5

    Compare take-home

    See your take-home and super with and without packaging, per fortnight and per year.

Why school type matters

Salary packaging means giving up some salary before tax in exchange for a benefit. Whether that saves you money depends on fringe benefits tax (FBT), which your employer pays on most benefits. The FBT rules differ by employer type, and that's what makes packaging valuable in some schools and not others.

Based on ATO guidance on FBT concessions for not-for-profit employers.

Catholic and independent schools

  • Most are FBT-rebatable employers (not FBT-exempt)
  • 47% rebate on FBT for benefits up to $30,000 grossed-up per employee per FBT year
  • Packaging everyday expenses can lower your taxable income
  • Status depends on each school's endorsement, so check with your school

Government schools

  • State education departments aren't rebatable or exempt employers
  • No FBT cap for everyday expenses
  • Packaging usually limited to super, novated car leases and some work devices
  • Salary sacrifice into super is available to everyone

A common confusion: the $30,000 grossed-up cap is also the figure used for public benevolent institutions (PBIs), where it's an exemption cap, worth about $15,900 of taxable value. Most schools aren't PBIs. For rebatable employers the $30,000 cap limits the rebate, not the tax, so the saving is smaller than in a PBI or charity hospital. The calculator treats non-government schools as rebatable unless you tell it otherwise.

Salary sacrifice into super: the option every teacher has

Salary sacrificing into super works in any school. The amount comes out of your pay before income tax and goes into your fund, where it's taxed at 15% instead of your marginal rate of 32% (30% plus Medicare). The catch is that the money is locked away until you reach preservation age, which is 60.

Worked example

NSW government teacher at Step 7 ($133,422), 2026–27

Take-home with no sacrifice
$100,207 ($3,854 a fortnight)
Take-home with $5,000 sacrificed
$96,807 ($3,723 a fortnight)
Take-home with $10,000 sacrificed
$93,407 ($3,593 a fortnight)
Added to super from $10,000 (after 15% tax)
$8,500
Cost of putting $8,500 into super $6,800 in take-home pay

Site tax engine, 2026–27 rates. Employer SG of about $16,011 plus $10,000 of sacrifice is $26,011, inside the $32,500 concessional cap.

What the calculator assumes

  • Income tax, Medicare and HELP use 2026–27 rates through the site's tax engine.
  • For rebatable employers, the calculator applies the 47% FBT rebate up to the $30,000 grossed-up cap. Your school or provider may pass costs on differently.
  • Provider admin fees are deducted from the saving. Ask your provider for the exact fee.
  • Salary sacrifice into super is checked against the $32,500 concessional cap, including your employer's 12% SG.
  • Novated car leases aren't modelled; they depend on the car, the lease and the FBT method used.

Before you sign up

  1. 1

    Confirm your school's FBT status

    Ask payroll whether your school is a rebatable employer and which packaging provider it uses.

  2. 2

    Check what you can package

    Providers publish lists of eligible benefits and their caps. Meal entertainment and venue hire may have separate limits.

  3. 3

    Compare after fees

    Run the numbers with the provider's fee included. A small package can be eaten up by fees.

  4. 4

    Think about your other tests

    If you're near a HELP band, the Medicare levy surcharge threshold ($105,000 for singles in 2026–27) or an income test for a payment, check the effect of reportable amounts.

Read the full teacher salary packaging guide, salary sacrifice super for teachers and Catholic and independent school teacher pay. For a decision about your own package, a registered tax agent or licensed financial adviser can help.

Frequently asked questions

Can teachers salary package in Australia?
Yes, but the options depend on your school. Teachers at most Catholic and independent schools can package everyday expenses with an FBT rebate. Government school teachers can salary sacrifice super and usually a novated car lease or work devices.
How much can Catholic school teachers salary package?
Benefits up to $30,000 grossed-up a year attract the 47% FBT rebate at a rebatable employer. That's a cap on the rebate, not a tax-free amount, so the real saving is smaller than at a charity hospital or PBI.
Are Catholic schools FBT-exempt?
Generally no. Most Catholic and independent schools are FBT-rebatable employers, which get a 47% rebate on FBT. The $30,000 exempt cap applies to public benevolent institutions, which most schools aren't.
Can government school teachers salary package?
Only in limited ways. State education departments don't get the not-for-profit FBT concessions, so packaging is usually limited to super, novated car leases and some portable devices.
Is salary sacrificing super worth it for teachers?
Often, for teachers in the 30% bracket. At NSW Step 7, sacrificing $10,000 costs about $6,800 in take-home pay and adds $8,500 to super after the 15% contributions tax. The money is locked until at least 60.
Does salary packaging reduce my HECS repayment?
No. Reportable fringe benefits and reportable super contributions are added back to your HELP repayment income, so packaging doesn't reduce your compulsory repayment.

Guides that go with this tool

Salary packaging

Teacher salary packaging: what you can package, and what it's really worth

What teachers can salary package in public, Catholic and independent schools, with the real maths.

Super

Salary sacrificing super as a teacher: what it costs and what you gain

Worked 2026–27 examples of salary sacrificing into super at real teacher pay steps.