Written for Doctors & Allied Health
Most doctors first meet salary packaging in the middle of an intern orientation, somewhere between the fire drill and the IT login. It sounds like paperwork, so it gets put off. Yet for a doctor employed by NSW Health it is one of the simplest ways to keep a few thousand dollars more of your own salary each year, legally and with very little effort.
Who this article is for: interns, residents, registrars and staff specialists employed by NSW Health, including at Royal North Shore, Ryde and Hornsby Ku-ring-gai hospitals in the Northern Sydney Local Health District.
Currency note: This article reflects the position as at October 2026. Salary packaging runs on the fringe benefits tax (FBT) year, which for this round is 1 April 2026 to 31 March 2027.
How salary packaging works
Public hospitals receive a concession from fringe benefits tax. Because of that, you can ask NSW Health to pay part of your salary, before tax, towards everyday living expenses such as rent or mortgage repayments, bills and credit card spending. Those dollars are not taxed, so your take-home pay goes up even though your salary has not changed.
NSW Health’s salary packaging is run through its provider, Smartsalary. You usually receive a living expenses card and the packaged amount is loaded each pay.
The numbers for 2026–27
- Living expenses: up to $9,010 per FBT year (1 April to 31 March), according to NSW Health’s salary packaging provider.
- Meal entertainment and venue hire: a separate benefit is also commonly available, often quoted at up to $2,650 a year. Check the current limit with Smartsalary or your payroll team before you rely on it.
What is it worth? As a rough illustration only, a registrar earning $120,000 pays tax at 30% plus the 2% Medicare levy on their top dollars. Packaging the full $9,010 would save around $2,880 a year before provider fees. A staff specialist in the top tax bracket would save closer to $4,200. Your own figure depends on your income and the fees you pay.
What to watch
- It still counts for some tests. The grossed-up value of your packaged benefits, about $17,000 for the full $9,010, appears on your income statement as reportable fringe benefits. That amount is included when working out HELP repayments, the Medicare levy surcharge, Family Tax Benefit and child support. So packaging does not reduce your HELP repayments the way many doctors expect. Our article on salary packaging and HECS debt goes into more detail.
- Use it or lose it. Unused cap does not carry forward past 31 March. Check your balance in February or March.
- Rotations and new employers. Eligibility is set by your employer’s policy. If you move to a private hospital, take a role outside NSW Health or start private practice, your packaging arrangement will change or stop.
- Fees. Providers charge administration fees, so look at your saving after fees, not before.
Salary packaging and salary sacrificing super are different
Packaging living expenses and salary sacrificing into super are separate arrangements. You can do both. Extra super contributions count towards your concessional contributions cap and are taxed inside the fund, so they suit a different goal: building long-term wealth rather than freeing up cash today. Our guide to how much super you can salary sacrifice explains the cap.
Thinking about private practice later?
Many North Shore doctors eventually add private sessions or rooms. When that happens, salary packaging on your private income is no longer available, and questions about structures, GST and personal services income rules start to matter. It is worth planning a year ahead, not the month you sign a rooms agreement. Our page for medical and health professionals covers the main stages.
Meet us in Chatswood
Our Chatswood office is two stops from St Leonards on the T1 North Shore line, so it is easy to reach after a shift at Royal North Shore, and it sits on the same line as Hornsby. From Macquarie Park, North Ryde or Epping, it is a short Metro ride. Panbo Ye presents the CPD Home course “Tax and Business Structures for Australian Doctors”, and our team of Chartered Accountants, CPAs and financial planners can review your packaging, tax and super together, in English or Mandarin. Learn more about our Chatswood accountants and financial planners.
Reviewed in the professional context of Everglow Accounting Pty Ltd. Everglow Accounting Pty Ltd ABN 88 127 171 386. Liability limited by a scheme approved under Professional Standards Legislation.
If you would like clarity on how these principles may apply to your own circumstances, contact Everglow on 1300 913 929 or email contact@everglow.au. To book directly: Book a meeting with Panbo.
Want help applying this to your situation?
Every situation is different. Book a time with our team to talk it through, or call us on 1300 913 929.
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