Salary Sacrifice in WA: What You Can Package as a Western Australian Employee (2026)

Salary sacrifice in Western Australia follows the same federal FBT rules as the rest of Australia — but what you can actually package, how much, and who administers it varies significantly depending on whether you work for the WA state government, a WA public hospital, an NFP, a private company, or a FIFO mining operation.

This guide covers the WA-specific salary packaging landscape: what each employer type can offer, the approved WA government packaging providers, the remote area benefits that are unique to WA's regional workforce, and how super salary sacrifice works for WA state government employees through GESB.

Quick answer: Most WA employees can salary sacrifice into super (concessional cap $30,000/year) and novated lease a car. WA public hospital employees can also package up to $9,010 in living expenses (rent, mortgage, bills) tax-free. WA NFP employees can package up to $15,900. WA state government employees access packaging through RemServ or Smart Salary under a government panel contract.

How Salary Sacrifice Works in WA — The Basics

Salary sacrifice (also called salary packaging) is an arrangement where you agree to receive less pre-tax cash salary in exchange for your employer providing benefits of equivalent value. Because the benefits are paid from pre-tax income, you reduce your taxable income — and potentially pay less income tax.

The tax saving comes from the difference between:

Your marginal income tax rate (up to 47% including Medicare Levy for high earners)
The tax applied to the packaged benefit (0% for exempt benefits, 15% for super contributions, or 47% FBT for taxable benefits — which is why only exempt or FBT-concessional items are worth packaging)

The most important thing to understand about salary sacrifice in WA — as anywhere in Australia — is that what you can package depends almost entirely on your employer type, not your personal preference. The ATO rules determine what is FBT-exempt or concessionally treated. Your employer determines what they are willing to offer and administer.

Salary Sacrifice by Employer Type in WA

WA State Government Employees

Western Australia state government agencies participate in a centralised salary packaging program administered under the government's supplier panel contract CUASPS2017. The approved providers are RemServ and Smart Salary (and several others on the panel). Your agency's HR team will confirm which provider administers packaging for your workplace.

What WA state government employees can typically package:

Benefit	Notes
Novated lease (car)	Full running costs — lease payments, fuel, rego, insurance, maintenance
Additional superannuation	Into your GESB account or other complying fund
Portable electronic devices	One laptop and one phone per FBT year, primarily for work
Remote area benefits	If employed in a remote location — see below
Income protection insurance	Subject to employer offering
Self-education expenses	Course fees, textbooks, for work-related study
Membership fees and professional subscriptions	Work-related memberships
Work uniform and protective clothing	Deductible as ordinary or via packaging
Financial advice fees	Some agencies permit this

What WA state government employees generally cannot package:

General living expenses (rent, mortgage, groceries, utilities) — this is only available to FBT-exempt employers (hospitals, NFPs), not to standard government agencies
Personal items unrelated to work
Leisure activities

Important: WA state government agencies are rebatable employers — not FBT-exempt. The state government pays FBT on benefits provided and receives a 48% rebate, up to a grossed-up cap of $30,000 per employee. This means the living expenses packaging available to public hospital employees is not available to general WA public servants. See the FBT article for a full explanation of the difference.

GESB — WA Government Super Fund

Most WA state government employees are members of GESB Super or West State Super — funds managed by the Government Employees Superannuation Board, which is specific to WA state system employees.

Salary sacrificing into GESB works the same way as sacrificing into any complying super fund: contributions are concessional (taxed at 15% in the fund, not your marginal rate), and count toward the annual concessional contributions cap of $30,000 (2025-26), inclusive of employer SG contributions.

West State Super is an untaxed defined benefit fund — contributions and earnings accumulate untaxed within the fund and are taxed only when withdrawn. This different tax treatment means salary sacrifice into West State Super has specific considerations that differ from standard accumulation funds. GESB recommends members seek financial advice before increasing salary sacrifice into West State Super. Contact GESB directly on 13 43 72 for guidance specific to your account type.

WA Health (Public Hospital Employees)

WA Department of Health and its affiliated public hospitals are FBT-exempt employers (specifically, public hospitals). This gives WA Health employees access to significantly more valuable salary packaging than standard WA public servants.

The key benefit: living expenses packaging

WA Health employees can package up to $9,010 per FBT year in general living expenses — including:

Rent payments (private rental)
Mortgage repayments (home loan)
Credit card payments (where used for living expenses)
Utility bills (electricity, gas, water)
Groceries and everyday purchases (via salary packaging card)
Health insurance premiums
HECS/HELP debt repayments (where permitted by employer)

This $9,010 is paid from pre-tax salary, reducing your taxable income by that amount. At a 34.5% marginal rate (including Medicare Levy), the annual tax saving is approximately $3,108. At the 39% rate, approximately $3,514.

The additional meal entertainment cap

WA Health employees can also package up to $2,650 per FBT year in meal entertainment and venue hire (restaurants, café meals, work functions). This is separate from the $9,010 living expenses cap.

Combined maximum FBT-exempt packaging for WA Health employees:

Living expenses: $9,010
Meal entertainment: $2,650
Novated lease: in addition to both caps above
Super: in addition (subject to concessional cap)

WA Health packaging provider: Paywise

Paywise is the primary salary packaging provider for WA Department of Health and WA public hospitals. Over 60% of WA Health employees are reported to be using salary packaging. Contact Paywise at paywise.com.au or 1300 132 532 for WA Health-specific packaging.

Note on WA Country Health Service: Employees of WA Country Health Service who are working in remote or regional areas may have access to additional remote area benefits on top of the standard FBT-exempt caps. See the remote area benefits section below.

Note on Mental Health Commission: Employees of the Mental Health Commission (MHC) — which is separate from WA Health — can only package superannuation and novated leases. They cannot access the living expenses or meal entertainment caps.

WA NFP, Charity, and Aged Care Employees

Employees of public benevolent institutions (registered charities endorsed by the ATO), disability services, and aged care providers that are FBT-exempt can access the highest living expenses packaging cap:

$15,900 per FBT year in general living expenses (rent, mortgage, bills, groceries), plus $2,650 in meal entertainment — also FBT-exempt.

This applies to WA employees working for registered charities, NFP disability providers, and similarly endorsed organisations. The $15,900 cap is significantly more valuable than the $9,010 available to hospital employees — at a 39% marginal rate, the annual tax saving on the full $15,900 is approximately $6,201.

Check with your employer or HR team whether your organisation is endorsed by the ATO as a PBI or health promotion charity, which determines whether the $15,900 or $9,010 cap applies.

Private Sector Employees in WA

Employees of private companies in WA — including most mining company employees working through corporate structures (Pty Ltd) — are covered by the standard FBT rules with no living expenses packaging concessions.

What private sector WA employees can typically sacrifice:

Super contributions — the most universally available and tax-effective option. Concessional cap $30,000/year inclusive of employer SG.
Novated lease — widely available through private employers. Particularly valuable for EV novated leases, which are FBT-exempt up to the $91,387 luxury car tax threshold (2025-26).
Work-related portable electronic devices — one laptop and one phone per FBT year, FBT-exempt if primarily for work.
Income protection insurance — some private employers permit this.

Living expenses (rent, mortgage, bills) cannot be packaged tax-effectively by private sector employees — FBT applies at 47%, eliminating any tax advantage.

FIFO and Mining Sector Employees in WA

Most FIFO workers at major WA mining operations work under enterprise agreements that specify their total remuneration package. Salary sacrifice under these agreements typically allows:

Super contributions (always available)
Novated leases (widely available through mining employer agreements)
EV novated leases (FBT-exempt — particularly popular in the WA resources sector where high incomes make the tax saving substantial)

Some mining enterprise agreements include specific additional benefits — salary packaging for equipment, camp allowances structured as packaging arrangements, or fly-in fly-out allowances treated as salary sacrifice. Check your enterprise agreement's remuneration and benefits clause directly.

Remote area benefits (see below) are also available to FIFO workers and remote employees where specific conditions are met.

Remote Area Benefits — WA's Unique Salary Packaging Advantage

This is one of the most underused and least understood salary packaging benefits in Australia — and it is disproportionately relevant to Western Australia given the size of the state's remote and regional workforce.

What Are Remote Area Benefits?

Remote area benefits are a set of FBT concessions that apply when an employer provides certain benefits to employees who live and work in "remote areas" as defined by the ATO. The concessions reduce or eliminate FBT on benefits that would normally attract the full 47% FBT rate.

The ATO defines remote areas using a zone-based system. Areas are classified as Zone A (inner remote) or Zone B (outer remote) based on distance from urban centres. Much of regional and northern WA — including the Pilbara, Kimberley, Goldfields, and parts of the Mid West — falls within remote area classifications.

Key Remote Area Benefits Available in WA

Remote area housing assistance: An employer who provides or subsidises housing for an employee in a remote area can do so at a reduced FBT rate. The FBT concession on remote area housing is 50% — the employer pays FBT on only half the taxable value of the housing benefit. For FIFO workers living in employer-provided accommodation, this is directly relevant to how the accommodation is taxed.

Remote area loan (mortgage assistance): An employer who provides a subsidised loan to help an employee purchase a home in a remote area receives an FBT concession on the interest differential.

Remote area residential fuel: Employer-provided fuel for heating, cooling, or lighting a remote area home is fully FBT-exempt.

Remote area holiday transport: Employers can provide annual flights or reimburse airfares for employees (and their families) in remote areas to return to urban centres for annual leave, with FBT concessions applying. The number of trips and the FBT treatment depends on the remoteness classification and whether the employer provides the transport or reimburses the cost.

Zone tax offsets for employees personally: Separate from salary packaging, employees who live in Zone A or Zone B remote areas may be personally entitled to a zone tax offset in their individual tax return. This reduces their income tax payable independently of any salary packaging arrangement. Check the ATO's zone offset rules at ato.gov.au.

Remote Area Benefits and WA State Government Employees

WA state government employees posted to regional or remote locations — schools, hospitals, police, TAFE, and community services — may be able to access remote area salary packaging benefits through their agency's RemServ or Smart Salary packaging arrangement. Specific benefits available depend on the agency and the classification of the location. Contact your agency's HR team or your packaging provider for location-specific eligibility.

Salary Sacrifice Limits in WA (2025-26)

These limits apply uniformly — they are federal ATO rules, not WA-specific.

Benefit	Annual cap / limit
Concessional super contributions (salary sacrifice + employer SG combined)	$30,000
Living expenses — FBT-exempt (NFP/PBI employees)	$15,900
Living expenses — FBT-exempt (public hospital/ambulance employees)	$9,010
Meal entertainment — FBT-exempt (both categories above)	$2,650
Portable electronic devices — FBT-exempt	1 device per type per FBT year (no $ cap)
EV novated lease — FBT-exempt	Up to $91,387 vehicle value at first sale (2025-26)
Novated lease — standard petrol/diesel vehicle	No $ cap — FBT applies (offset via employee contribution method)

The FBT year runs 1 April to 31 March. If you have unused cap at 31 March, it is lost — it does not carry forward to the next year. If you are salary packaging living expenses and have a balance remaining at 31 March, spend or allocate it before year end.

How to Set Up Salary Sacrifice in WA

Step 1: Confirm your employer type. Your employer type determines what you can package. If you are unsure whether your employer is a standard (rebatable) government agency, an FBT-exempt public hospital, or an NFP, ask your HR team or payroll department directly.

Step 2: Contact your packaging provider. For WA state government employees, contact RemServ or Smart Salary (whichever your agency uses). For WA Health employees, contact Paywise. For private sector employees, ask HR whether your employer has a packaging arrangement — not all employers do, particularly smaller businesses.

Step 3: Choose your benefits. Start with super salary sacrifice if nothing else — it is available to virtually all employees and is the most tax-effective packaging option for most people. Add novated lease if you need a vehicle. Add living expenses if you work for WA Health or an NFP.

Step 4: Sign a salary sacrifice agreement. The arrangement must be in writing and agreed before you earn the salary to be sacrificed. You cannot retrospectively sacrifice salary already earned.

Step 5: Check the RFBA impact. Most salary sacrifice arrangements (except super) create a Reportable Fringe Benefits Amount (RFBA) on your income statement. The RFBA increases your adjusted taxable income for HECS repayments, Medicare Levy Surcharge, and government payment income tests — even though you pay no extra income tax on it. Factor this in before committing to a large packaging arrangement. See our FBT guide for a full explanation of the RFBA.

Worked Examples

Example 1 — WA Health Nurse, Living Expenses Packaging

Gross salary: $95,000
Marginal rate: 34.5% (32.5% + 2% Medicare)
Packaging: $9,010 living expenses (rent) + $2,650 meal entertainment

Without packaging:

Taxable income: $95,000
Income tax + Medicare: approximately $22,567
Take-home: $72,433

With packaging:

Taxable income reduced by $11,660 (living expenses + meal entertainment): $83,340
Income tax + Medicare: approximately $18,543
Take-home cash: $60,797 + $11,660 in pre-tax benefits = effective disposable: $72,457 plus $4,024 in tax saved

The nurse receives the same $95,000 in value — but $4,024 less goes to the ATO.

Example 2 — WA State Government Employee, Super Salary Sacrifice

Gross salary: $110,000
Employer SG: $13,200 (12% of $110,000)
Remaining concessional cap: $30,000 − $13,200 = $16,800 available to sacrifice
Marginal rate: 39% (37% + 2% Medicare)

Without sacrificing: the $16,800 is taken as salary, taxed at 39% → after-tax: $10,248

With sacrificing $16,800 into super: taxed at 15% in the fund → net in super: $14,280

Tax saving on $16,800 sacrifice: $14,280 − $10,248 = $4,032 per year more in super (net of all tax).

Example 3 — Private Sector FIFO Worker, EV Novated Lease

Gross salary: $180,000
Vehicle: Tesla Model 3, $65,000 (under $91,387 FBT-exempt threshold)
Annual lease + running costs: $22,000
Marginal rate: 47% (45% + 2% Medicare)

Without novated lease: $22,000 paid from after-tax income — effective cost: $22,000 / (1 − 0.47) = $41,509 pre-tax equivalent

With EV novated lease (FBT-exempt):

$22,000 sacrificed from pre-tax salary
No FBT applies (EV exemption)
Tax saving: approximately $10,340 per year at 47% marginal rate

Frequently Asked Questions

Can I salary sacrifice rent or mortgage payments in WA?

It depends on your employer. WA public hospital employees can package up to $9,010 per year in rent or mortgage payments tax-free. WA NFP/charity employees can package up to $15,900. WA state government employees (outside health) cannot package living expenses tax-effectively — they are rebatable employers, not FBT-exempt, so living expenses would attract FBT at 47% (eliminating any tax benefit). Private sector employees cannot package rent or mortgage payments tax-effectively either.

What is the salary sacrifice limit in WA?

The limits are set by federal ATO rules, not WA-specifically. For super: $30,000 per year total concessional contributions (employer SG + salary sacrifice combined). For living expenses (if your employer is FBT-exempt): $9,010 for public hospital employees, $15,900 for NFP/PBI employees. These caps reset each FBT year (1 April to 31 March). There is no cap on novated leases (FBT applies for standard vehicles; FBT is exempt for eligible EVs up to $91,387).

Who administers salary packaging for WA state government employees?

WA state government agencies participate in a centralised panel contract (CUASPS2017). The main approved providers are RemServ and Smart Salary. The specific provider varies by agency — check with your HR team. Both providers offer novated leases, super contributions, portable electronic devices, and other ATO-permitted benefits for WA government employees.

Can WA government employees salary sacrifice living expenses?

Generally no. WA state government agencies are rebatable employers, not FBT-exempt. FBT applies to living expenses benefits they provide. Unlike public hospital employees (who benefit from the FBT exemption cap), standard WA public servants cannot use pre-tax salary for rent, mortgage, or utilities tax-effectively. The main packaging options for WA public servants are novated leases, super contributions, and work-related devices.

How does salary sacrifice work with GESB super in WA?

GESB manages two super funds for WA state government employees: GESB Super (accumulation fund, taxed) and West State Super (untaxed defined benefit fund). Salary sacrifice into GESB Super works the same as any complying fund — contributions are taxed at 15% in the fund and count toward the $30,000 annual concessional cap. West State Super has a different tax structure (untaxed fund, taxed only at withdrawal) and salary sacrifice rules that differ from standard funds. GESB recommends seeking advice before increasing West State Super contributions. Contact GESB on 13 43 72.

What are remote area salary packaging benefits in WA?

Remote area benefits are FBT concessions available to employers and employees in areas the ATO classifies as remote — including much of regional WA (Pilbara, Kimberley, Goldfields, Mid West). Concessions include reduced FBT on employer-provided housing (50% FBT reduction), FBT-exempt residential fuel, and concessional FBT on annual holiday transport flights. These benefits are relevant to WA state government employees posted regionally, WA Country Health Service staff, and some remote mining employees. Separately, employees personally may claim zone tax offsets in their tax return for living in Zone A or Zone B remote areas.

Is salary sacrifice worth it in WA?

It depends on your employer type and marginal tax rate. For WA Health and NFP employees, packaging living expenses up to the FBT-exempt cap ($9,010 or $15,900) is almost always worth doing — it is a direct reduction in tax payable with no significant downside for most employees. For all WA employees, super salary sacrifice is worth considering if your marginal rate exceeds 19% (effectively anyone earning above $18,200). Novated leasing is valuable for EV purchases at all income levels, and for high-income earners on standard vehicles where the tax saving exceeds the FBT and administration cost. Always factor in the RFBA impact on your HECS repayments and any income-tested government benefits before committing to a large packaging arrangement.

This article is general information only and does not constitute financial, tax, or legal advice. Salary packaging rules, FBT rates, concessional caps, and employer eligibility can change. Always verify with your employer, packaging provider, and a qualified adviser before entering into a salary sacrifice arrangement.