Upcoming changes to salary packaging of work-related expenses
Upcoming changes to salary packaging of work-related expenses
What’s changing from 1 April 2027 and what it means for you.
What’s changing for work-related expenses
The Australian Government and the Australian Taxation Office (ATO) have announced changes to the Fringe Benefits Tax (FBT) treatment of some salary packaged work-related expenses.
From 1 April 2027, these expenses will no longer be FBT-exempt or eligible for reduced FBT when provided through salary packaging. This means they'll no longer be tax-effective to package.
The change follows the introduction of a new standard deduction of up to $1,000 for work-related expenses, which applies from the 2026–27 income year.
All other salary packaging benefits stay the same
These changes don't affect novated leasing, meal entertainment or your general salary packaging cap. Professional association memberships, union fees and income protection insurance can also continue to be packaged.
Work-related items your employer provides directly, outside a salary packaging arrangement, remain FBT-exempt where they're mainly used for work.
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Need a new work-related laptop or phone? Package it now
Thinking about a new work-related laptop, tablet, phone, smartwatch or headphones? Package it now under the current rules, before the changes kick in.
