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Salary Packaging & FBT Gross-Up: Boost Doctor Mortgage Borrowing by $100k+

Discover how public hospital medical practitioners leverage Fringe Benefits Tax (FBT) exemptions to legally amplify their mortgage borrowing capacity through specialized gross-up formulas.

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Unlock the Hidden $20,000 Borrowing Power Inside Your Hospital Payslip

Working in the Australian public healthcare system entitles you to one of the most generous tax concessions in the Commonwealth: FBT-exempt salary packaging under Section 57A of the Fringe Benefits Tax Assessment Act 1986.

Every year, public hospital doctors can package up to $9,010 in general living expenses and $2,650 in meal entertainment, paying these costs directly from pre-tax earnings.

However, standard retail bank branches only look at your net taxable income, completely ignoring the pre-tax value of this tax exemption. This mistake slashes your assessed borrowing power by $60,000 to $100,000+.

Here is our strategy: We ask you a few quick questions about your situation, then match you directly with an accredited specialist who will fight for your approval, cut through bank red tape, and deliver your loan with zero stress. Get matched directly with an accredited specialist in 60 seconds via the Mortgage Matcher.

How It Works (Takes 2 Minutes)

1
Extract salary packaging report
Obtain packaging statements (Maxxia, Smartsalary, SalaryPlus).
2
Apply gross-up calculation
Calculate pre-tax income equivalent across 1.7x factor.
3
Maximize approved loan amount
Lock in maximum borrowing power at prime wholesale rates.
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1. The Statutory Mechanics of Section 57A FBT Exemptions

Under Section 57A of the FBTAA, public health organisations, public benevolent institutions (PBIs), and public hospitals are exempt from paying Fringe Benefits Tax on employee benefits up to capped thresholds.

Because this $11,660 combined sum is paid from pre-tax salary and never taxed at your 47% top marginal bracket, it provides the exact economic benefit of earning $22,000+ in pre-tax gross salary.

⚡
THE 1.70x GROSS-UP FACTOR
Specialist lenders take your net salary packaged amount and divide by (1 - 0.47) to calculate the precise pre-tax gross salary required to generate that net cash flow.

2. Documentation Required for Salary Packaging Verification

To ensure your salary packaging is grossed up without friction during credit underwriting, assemble the following evidence:

3. Dual-Income Medical Household Amplification

When two medical professionals (e.g. two doctors or a doctor and a nurse) apply together, both applicants qualify for independent Section 57A FBT packaging exemptions.

This dual gross-up adds over $44,000 in combined pre-tax assessed earnings, increasing joint household mortgage borrowing capacity by $180,000 to $220,000+.

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"Do all Australian banks gross up medical salary packaging?"

Sophie Taylor
Sophie Taylor Medical Credit Specialist

No. Many retail banks ignore salary packaging or count only the net amount. Only specialized medical private desks apply the full pre-tax gross-up formula.

"Can I use salary packaging to pay my new mortgage directly?"

Marcus Vance
Marcus Vance Healthcare Lending Policy Analyst

Yes. Most public health salary packaging administrators allow you to designate your monthly mortgage payment as your $9,010 living expense benefit.

Frequently Asked Questions: Salary Packaging & FBT Gross-Up for Medical Mortgages Australia

Do all Australian banks gross up medical salary packaging?
No. Many retail banks ignore salary packaging or count only the net amount. Only specialized medical private desks apply the full pre-tax gross-up formula.
Can I use salary packaging to pay my new mortgage directly?
Yes. Most public health salary packaging administrators allow you to designate your monthly mortgage payment as your $9,010 living expense benefit.
Does salary packaging affect my HECS repayment calculations?
Salary packaging generates a 'Reportable Fringe Benefits Amount' (RFBA) on your PAYG payment summary, which is factored into HECS calculations by medical underwriting matrices.
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