WageCalculator

Work Equipment Salary Packaging Calculator

Calculate tax savings from packaging work equipment.

Salary sacrifice inputs

Your income

Estimate the tax impact of packaging work-related equipment such as laptops, phones, and tools.

showing as year
$/ year
$2k / year$300k / year
$

Enter the total cost of the equipment you want to package.

One-time amount.

Work equipment packaging

You can package work-related equipment like laptops, phones, tablets, and tools. The item cost is spread for tax purposes, while the salary packaging benefit is reflected up front.

Example: Home Office Setup ($2,500)

See how packaging a laptop + monitor + accessories on a $90,000 salary saves you:

✕Paying with After-Tax Cash

  • Equipment Cost:$2,500
  • GST Savings:—
  • Income Tax Savings:—
  • Net Cost to You:$2,500
WITH PACKAGING

✓Salary Packaging

  • Equipment Cost:$2,272.73 (ex GST)
  • GST Savings:−$227.27
  • Income Tax Savings:−$681.82
  • Net Cost to You:$1,590.91

Result: You save $909 on a $2,500 work equipment package — a 36% effective discount using pre-tax dollars!

?Complete Guide to Work Equipment Salary Packaging

Work equipment salary packaging lets you buy laptops, phones, tablets, tools, and other work-related items using pre-tax salary. The ATO exempts portable electronic devices and tools of trade from FBT when primarily used for work, making this an efficient tax strategy.

Key Benefits

30–45% effective discount

Depending on your marginal tax bracket.

Package multiple items

Combine laptop, phone, monitor, and more.

GST savings

Save 10% GST if your employer passes on the ITC.

Immediate tax benefit

Savings reflected in each pay cycle.

Eligibility:Items must be primarily used for work (generally >50% work use). One laptop/phone per FBT year unless replacing a lost or broken device.

Frequently Asked Questions

What equipment can I salary package?

You can salary package any work-related equipment including laptops, computers, phones, tablets, tools, software, office furniture, and accessories. The equipment must be primarily used for work (more than 50% work use).

How does the payment work?

The equipment cost is deducted from your pre-tax salary over time, typically spread over the item's useful life (3–4 years for electronics). You receive the equipment immediately but pay for it gradually through salary deductions.

Can I package multiple items at once?

Yes! You can package multiple work-related items together. For example, you could package a laptop, phone, monitor, and desk chair all at the same time. Each item's cost is deducted from your pre-tax salary.

What if I leave my job?

If you leave your job before the equipment is fully paid off, you'll typically need to pay the remaining balance. Some employers may allow you to take the equipment with you by paying the outstanding amount.

Can I salary sacrifice a laptop for personal use?

No. To qualify for the FBT exemption, the equipment must be primarily used for work (generally more than 50% work use). If the ATO considers the item primarily for personal use, FBT will apply and the tax benefit is lost. Items like gaming laptops or personal phones would not qualify.

How does GST work with salary packaged equipment?

When your employer purchases equipment for salary packaging, they can claim the GST input tax credit (ITC). Most employers pass this saving on to you, reducing the amount deducted from your salary. For example, on a $2,500 laptop the GST component is $227.27 — so only $2,272.73 is deducted from your pre-tax pay. Combined with the income tax saving at your marginal rate, the effective discount can reach 30–45%.

How much does salary packaged equipment actually cost me?

The effective cost depends on your marginal tax rate and whether your employer passes on the GST saving. The total discount is roughly your marginal tax rate plus the 10% GST component — so a mid-income earner in the 32.5% bracket (plus 2% Medicare) can expect around 35–40% off. Use the calculator above to see your exact effective cost based on your income.

More tools

Go deeper with your numbers

Use calculators for pay, tax, super, and comparisons.

Most popular

Super Projection

Forecast your retirement balance, model contribution impacts, and see how extra contributions compound over time.

Project balance
ABN income

Contractor Calculator

Turn hourly or daily contract rates into tax, GST, and self-funded super estimates.

Good for comparing contract work to salary offers
Side-by-side

Compare Job Offers

Put two or more offers head-to-head — after tax, super, and HECS.

Don't get fooled by a higher gross
Conversion

Hourly to Salary

Convert hourly rates to annual salary and see net pay after tax, Medicare, and HECS.

Great for comparing hourly contract vs salaried roles
Growth

Investment Calculator

Project how a lump sum and regular contributions grow with compound interest over time.

Compare nominal vs inflation-adjusted returns
Tax return

Tax Return Calculator

Estimate your refund or tax owing from annual totals and PAYG withheld.

Switch financial years to compare outcomes
Investments

CGT Calculator

Estimate capital gains tax, the 50% discount, and incremental tax on top of income.

Useful for shares, property, and other assets