The Fringe Benefits Tax (FBT) year is almost over! For information on important dates and what you can do to be ready for the end of year period, be sure to check out our handy 'FBT - All You Need To Know' information page.
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The Fringe Benefits Tax (FBT) year is almost over! For information on important dates and what you can do to be ready for the end of year period, be sure to check out our handy 'FBT - All You Need To Know' information page.
Nearly half our clients operate in this sector, giving us a deep understanding of your needs.
As an aged care provider, research institution or other not-for-profit employer, your tax status means employees can access some of the most generous salary packaging benefits available. We understand the specifics and can help you offer maximum value to employees.
Here are some of the most popular benefits you can choose to offer your employees.
Employees could use pre-tax salary for major expenses like rent or mortgage payments and other items, up to a cap of $15,900 each Fringe Benefits Tax (FBT) year (1 April - 31 March).
Employees can save when dining out with family and friends by salary packaging up to $2,650 for meals and entertainment each Fringe Benefits Tax year (1 April to 31 March).1
Salary packaging a car with a novated lease could save employees thousands on upfront costs as well as on income tax each year.
Below are some of the benefits you could offer – there could be many more.
Whether saving for their first home or counting down to retirement, salary sacrificing super can move employees closer to their financial goals while helping them save on tax.
Employees could claim for holiday accommodation costs, and even party or wedding expenses.
Staying connected costs less by salary packaging devices used mainly for work, like a tablet, phone or laptop.2
Help employees save on the costs of professional advice to help them increase their wealth and achieve their financial goals.
Employees may be able to salary package interest costs on an investment loan if that loan is used for income-producing purposes like shares or property.
Certain employers in the Healthcare, Not-for-profit, Disability and Aged care industries can offer parking in approved car parking stations as a salary packaging benefit.
Those who live and work in an area the ATO classes as ‘remote’,3 may be able to salary package house-buying costs, mortgage interest or rent.
FAQs
This is general information only. Before entering into any salary packaging or novated leasing arrangement, employees should consider their own objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon their own particular circumstances. The availability of benefits is determined by the employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a SmartTM company.
Employees who salary package meal entertainment could also claim for holiday accommodation costs, and even party or wedding expenses.
There’s a cap across Meal entertainment, Holiday Accommodation and Venue Hire benefits of $2,650 per FBT year (1 April –31 March). Eligibility for the Holiday Accommodation and Venue Hire benefit is dependent on industry and employer.
A portable electronic device can only be salary packaged if it is used primarily (over 50%) for work purposes. Tax savings achieved through salary packaging will depend on an employee’s income tax bracket and personal circumstances.
The ATO website lists ‘remote area’ towns. Visit this ATO page to see areas which qualify as ‘remote’. Like all salary packaged items, income tax deductions can’t be claimed on packaged remote area expenses. Smart is unable to make rent, mortgage interest, or utility payments on an employee’s behalf – salary packaged amounts will be reimbursed to an employee’s nominated bank account.