Changes to salary packaging of work-related expenses

An important update to your benefits

 

The Australian Government and the Australian Taxation Office (ATO) have announced changes to the way certain work-related expenses are treated for salary packaging purposes.

From 1 April 2027, eligible work-related expenses that can currently be salary packaged will no longer be available through salary packaging.

Instead, from the 2026-27 income year, a new standard deduction for work-related expenses will be introduced, also referred to as the $1,000 instant tax deduction. Giving you the option to claim eligible work-related expenses through your next annual tax return from July 2027.

You can learn more on these changes on the ATO website.

 

What benefits does this change apply to?

 

This change applies to the following work-related salary packaging benefits. The exact benefits available to you are determined by your employer.

  • Personal electronic devices, including laptops, tablets, and mobile phones
  • Self-education
  • Work development travel
  • Home office expenses
  • Computer software
  • Tools of trade
  • Work-related equipment
  • Work-related uniforms
  • Briefcase

 

What is the timing of these changes?

 

  • Standard $1,000 instant tax deduction: Applies from the 2026-27 income year. Eligible work-related expenses first claimable on tax returns from July 2027.
  • Salary packaging change: Applies to Fringe Benefits Tax (FBT) years from 1 April 2027.
  • Until then? Current salary packaging of these items continues unchanged.

 

What you need to do

 

Work-related expenses mentioned above can still be salary packaged under the current arrangements until 31 March 2027.

Salary package a device

If you're thinking about a new laptop, tablet or mobile phone, explore your salary packaging options before the changes take effect*.

Provided your employer offers this benefit and the device is used more than 50% of the time for work purposes, you could access the current salary packaging tax benefits until 31 March 2027. Eligible devices are determined by your employer.

Find out more

Frequently Asked Questions

  • Where can I get advice about my individual circumstances?

    The impact of these changes will vary depending on your personal circumstances and financial situation. You should seek professional advice regarding your individual circumstance.

  • Do I need to do anything now?

    If you’re considering purchasing eligible work-related items through salary packaging, you’ll need to ensure your final deduction occurs by your last pay run in March 2027.

  • What happens after 1 April 2027?

    From 1 April 2027, you will no longer receive a salary packaging tax benefit for the affected work-related items. Instead, eligible expenses may be claimed through your annual income tax return, subject to applicable tax rules.

  • Can I still salary package work-related items before 1 April 2027?

    Yes. Eligible work-related items can continue to be salary packaged under the current arrangements up until the last pay date in March 2027.

  • What benefits are impacted?

    The changes apply to the following work-related benefits. The exact benefits available to you are determined by your employer.

    • Personal electronic devices, including laptops, tablets and mobile phones
    • Self-education
    • Work development travel
    • Home office expenses
    • Computer software
    • Tools of trade
    • Work-related equipment
    • Work-related uniforms
    • Briefcase

  • What's the timeline of my benefits changing?

    Standard $1,000 instant tax deduction  Applies from the 2026-27 income year. Eligible work-related expenses first claimable on tax returns from July 2027, subject to applicable tax rules. 
    Salary packaging change  Applies to FBT years from 1 April 2027. 
    Until then  Current salary packaging of these items continues unchanged. 

  • What is changing?

    From the 2026-27 tax year, you will be able to claim a standard $1,000 tax deduction for eligible work-related expenses without needing to keep receipts (subject to applicable tax rules).

    Many work-related items currently available through salary packaging will become subject to Fringe Benefits Tax (FBT), meaning the existing pre-tax salary packaging benefit will no longer apply.

Disclaimers

 

* Subject to your employer’s salary packaging policy. As per ATO guidelines, portable electronic devices must be used primarily for work purposes (over 50%) to be salary packaged. Generally, you can salary package one portable electronic device every FBT year (1 April – 31 March), however, depending on your employer’s policy, multiple devices may be allowed. Tax savings achieved through salary packaging will depend on your income tax bracket and personal circumstances.  Visit https://accesspay.com.au/portable-electronic-devices/ to check for eligibility and full terms and conditions.