Salary packaging — like a novated car lease — lowers your tax, but the reported benefit is counted as income by several means tests. See both sides for FY26: the tax saving and the flow-on across the Medicare levy surcharge, Division 293, HELP/STSL and the family-assistance income test.
Educational tool. Not financial advice.
Your salary without packaging
The cash taxable income you'd earn before any benefit is sacrificed.
$
Type of packaging
An ordinary employer novated lease counts at full value in every income test. Section 57A exempt-employer packaging (public/NFP hospitals, PBIs, ambulance) is counted at a reduced value in the family-assistance income test only.
Taxable value of the packaged benefit
The pre-gross-up taxable value for the FBT year. A reportable fringe benefit only flows into the income tests when this is above $2,000.