How much can I salary package working for a charity or not-for-profit?

If you work for a public benevolent institution or health-promotion charity (most NDIS, disability, community and aged care providers) you can package up to $15,900 of living expenses per FBT year free of fringe benefits tax. Public and non-profit hospitals and ambulance services have a $9,010 cap. Both also get a separate $2,650 cap for meal entertainment and holiday accommodation.

Is my salary packaging cap $9,010 or $15,900?

It depends on your employer type, not your job. PBIs and health-promotion charities (including most disability, community and aged care employers) get the $15,900 cap. Public and non-profit hospitals and ambulance services get the $9,010 cap. If you're unsure, ask your payroll or packaging provider which cap your employer is registered for.

What is the reportable fringe benefits amount and why does it matter?

Packaging $15,900 creates a Reportable Fringe Benefits Amount (RFBA) of about $30,000 (benefits × 1.8868) shown on your income statement. It is not taxable income, but it is counted in income tests for Family Tax Benefit, Child Care Subsidy, the Medicare Levy Surcharge, Division 293 super tax and HELP/HECS repayments — so it can reduce those payments or increase those liabilities.

Is salary packaging worth it?

For most not-for-profit employees, yes — packaging the full cap on rent, mortgage or everyday expenses you'd pay anyway typically saves $4,000–$5,500 a year in tax. The saving is worth it as long as it comfortably beats the provider's admin fee and you account for any effect on income-tested benefits.

Not-For-Profit Salary Packaging Calculator

See your real take-home benefit from charity, hospital or aged care salary packaging — the correct FBT cap, tax saved, admin fees and reportable fringe benefit warnings.

Last verified: 3 June 2026Jump to calculator ↓

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