Australia’s health workers – doctors, nurses, midwives and hospital and ambulance staff – put in long hours each day, providing a critical service to the community.

While working in health can be tough, there are some perks though – one of them being the ability to salary package!

Eligible health workers can salary package up to $9,010 in living-expense items that attract Fringe Benefits Tax (FBT) – which could lower your taxable income and potentially increase your disposable income each year.

In other words, so long as you’re eligible, you could join the over 99,000 healthcare workers who put $9,010 in tax-free dollars towards costs that they pay for anyway – such as groceries, utility bills and mortgage or rent repayments!

But wait there’s more ($2,650 more)!

Eligible health workers may also be entitled to package an additional $2,650 before-tax on meal entertainment or venue hire expenses. That’s an extra $2,650 on top of the $9,010 you already have.

And, as with other sectors, health workers can package as many FBT-free benefits as they like – including self-education and work-related expenses – and they can also take out a novated lease in addition to the aforementioned caps.

These items are not capped but there may be other restrictions, terms and conditions.

How much could you save?

Let’s take a look at the potential difference in take-home pay when you salary package up to $9,010 in Living Expenses and $2,650 in Meal Entertainment per FBT year.

*Assumptions: All calculations are for illustrative purposes only. The estimated potential tax benefit is based on the assumption that an eligible employee salary packages the specified amount and that Input Tax Credits (ITCs) are passed on by the employer. FBT rates effective 1 July 2023 and PAYG tax rates effective 1 July 2024 have been used, average fees and charges are included. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit and Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded. This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply. The availability of benefits is subject to your employer’s approval.

Potential financial benefit on Salary Packaging and Meal and Entertainment.

• Annual Salary: $60,000
• Living Expenses Cap: $9,010
• Meal Entertainment Cap: $2,650
• Without Salary Packaging: $38,352
• With Salary Packaging: $41,996
• Net Benefit: $3,644

These tax exemptions can be significant – and definitely something to consider if you’re ever considering employment in the public or non-private health industry.

To find out if you’re eligible, speak to your employer, or get in touch with us today.

Assumptions: The estimated potential tax benefit is based on the assumption that an eligible employee salary packages the specified amount. FBT rates effective 1 July 2024 and PAYG tax rates effective 1 July 2024 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit & Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded. Important information: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may receive commissions in connection with its services. Maxxia Pty Ltd | ABN 39 082 449 036.