The Community Business Bureau (CBB) wholly owns The Salary Packaging People (TSPP).  Explore the TSPP website to find out additional information on novated leasing and salary packaging.

Assessable Income

What exactly is Assessable Income?

Assessable Income (also known as taxable income) is income that you can pay tax on – but you only have Assessable Income if your earnings exceed the tax-free threshold of $18,200 per annum. According to the Australian Tax Office, your Assessable Income is comprised of earnings from:

  • salary and wages
  • tips, gratuities and other payments for your services
  • allowances for things like car, travel, clothing and laundry
  • interest from bank accounts
  • dividends and other income from investments
  • bonuses and overtime an employee receives
  • commission a salesperson receives
  • pensions
  • rent received

Your salary packaging funds are not subject to income tax – they are tax-free after all – but the increase in take-home pay will increase the gross value of your salary. This is called Adjusted Taxable Income, and it equals your reduced salary plus the gross value of the salary packaged fringe benefits.

Find out how salary packaging could change your Assessable Income and Adjusted Taxable Income by using our handy salary packaging calculator below. Refer to the ‘Annual payment summary (PAYG)’ section in the full report; for Assessable Income refer to the ‘Taxable income’ figure, and for Adjusted Taxable Income refer to the ‘Total’ figure.

Of course, an increased Adjusted Taxable Income may change certain payments that are calculated using that figure. Keep reading to find out how this may affect Child Support, student debt (HECS-HELP or SFSS), and the Medicare Levy Surcharge. It’s worth noting that the financial benefits of salary packaging almost always outweigh any increase in payments.

Please note: Your Assessable Income will likely not impact your Centrelink arrangements. If you do have a Centrelink payment, you may need to seek advice on your individual circumstances from them.

Salary packaging calculator

(before tax)

Your Results:

Net Income without
salary packaging:
Net Income with
salary packaging included:
Potential benefit: $0
per year

Your annual HECS/HELP repayment

If you choose to start salary packaging with CBB, you need to ask your payroll team to deduct your HECS/HELP debt repayment of


Please note that we have based this estimate on the information you provided, we can talk to you about this more at your sign-up appointment.

1) All figures entered are yearly.
2) This calculator has been designed for use by Public Benevolent Institutions (PBIs) and Health Promotion Charities (HPCs) only.
3) Calculations exclude any tax offsets

Child Support

Salary packaging may impact Child Support arrangements that are managed by the Department of Human Services. It generally won’t affect private child support arrangements.

To ensure you fulfil your obligations, you’ll need to declare your income (including your additional income through salary packaging), plus any interest you earn with the Department of Human Services. From here, the amount you are required to pay or receive for Child Support may change – depending on your circumstances. You’ll need to get in touch with the Department of Human Services for more information about how a change in income will affect your particular arrangement.

a man and two boys riding bikes through a forest


As your income increases with salary packaging, your repayments to student loans such as HECS-HELP or SFSS will likely need to increase, too. However, the financial benefit of salary packaging will still outweigh the increased repayments; plus, you’ll be paying off the debt quicker!


If you receive Centrelink, salary packaging should not impact your entitlements. You see, Centrelink don’t assess the grossed-up amount of your salary packaging, instead they assess the cash – or net – value of your salary packaging, which is your Reportable Fringe Benefit amount x 0.53 (or about 50% of it). Simply put, this is because you do not actually receive your total salary packaging benefit in cash.

If you start salary packaging while receiving Centrelink, there are a few things you need to do. You must declare your salary packaging benefit to Centrelink as ‘Exempt Reportable Fringe Benefits’, and contact Centrelink directly to update their records of your family income.

Medicare Levy Surcharge

If you start salary packaging, your income will increase. Therefore, you may be required to pay the Medicare Levy Surcharge, or you may be entitled to a lower rebate. This is only if you do not have private health insurance.

More information about the Medicare Levy Surcharge can be found on the ATO website.

Want more take-home pay?

Find out how salary packaging can benefit you based on your unique circumstances. Book a sign-up appointment with a member of the CBB team.