Meal Entertainment Card Salary Packaging and Your Pay
Meal entertainment card salary packaging is a way to reduce your taxable income by swapping part of your salary for a card that covers meals and entertainment. This article explains how it works, how it affects your take-home pay, and where you sit relative to the national full-time average.
How Salary Packaging Works
Under a salary packaging arrangement, your employer agrees to provide you with a benefit—here, a meal entertainment card—instead of paying you that amount as cash. The value of the card is a fringe benefit, and your employer may pay Fringe Benefits Tax (FBT) on it. However, for certain employees, such as those working in public hospitals, charities, or other not-for-profit organisations, the ATO allows the benefit to be exempt from FBT up to a limit. This means you can receive the card without paying income tax on that portion of your salary.
Your taxable income is reduced by the amount you salary package. For example, if you earn $108,352 (the national full-time average) and package $5,000 for a meal entertainment card, your taxable income becomes $103,352. You pay less tax, and your take-home pay increases accordingly.
Where the National Full-Time Average Sits
The national full-time adult ordinary-time average is $2,083.70 per week, or about $108,352 per year. This is the line on Place a salary on the line. It comes from the ABS Average Weekly Earnings, May 2026. The median full-time salary is lower, at about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week.
If you use meal entertainment card salary packaging, your gross salary might be above the average, but your taxable income could drop below it. That changes how you appear on the line. The site compares your taxable income (before tax) to the national full-time average.
Tax Implications for 2026–27
For the 2026–27 income year, the resident tax rates are:
- Nil up to $18,200
- 15% from $18,201 to $45,000
- 30% from $45,001 to $135,000
- 37% from $135,001 to $190,000
- 45% above $190,000
Plus the Medicare levy of 2% (with reductions for low incomes).
If you salary package a meal entertainment card, your taxable income falls, so you may move into a lower tax bracket. For instance, someone earning $110,000 who packages $5,000 drops to $105,000, still in the 30% bracket but paying less tax overall. The benefit is greatest for those in higher brackets.
State Averages for Context
Full-time averages vary by state. The highest is the Australian Capital Territory at about $119,090, followed by Western Australia at $115,825, New South Wales at $109,658, Victoria at $106,137, Queensland at $106,064, South Australia at $102,450, the Northern Territory at $103,173, and Tasmania at $96,008. If you work in a state with a higher average, salary packaging can still improve your take-home pay relative to the national line.
Is Meal Entertainment Card Salary Packaging Right for You?
It depends on your employer and your role. Not all employers offer salary packaging, and not all employees are eligible for the FBT exemption. Check with your HR department or a tax adviser. The ATO provides guidance on what counts as meal entertainment and the caps that apply. For more on how salaries are measured, see How the figures are set.
Summary
Meal entertainment card salary packaging can boost your take-home pay by reducing your taxable income. The national full-time average of $108,352 is a useful benchmark. If you package part of your salary, your taxable income may fall below that line, but your gross salary might be above it. Always consider the ATO rules and your personal circumstances. For more context on where different jobs sit, visit Job medians.