Are you FBT exempt or FBT rebate?
The Australian taxation laws provide generous tax concessions for not for profit organisations within an FBT year (1 April to 31 March).
You are able to pass on to your employees a proportion of their wages as reimbursement of personal expenses tax-free, depending on your FBT status. This will determine if no income tax or FBT is payable on this money.
BENEFITS INCLUDE: (subject to your FBT status)
- $15,900 Everyday General Living Expenses ($30,000 grossed up per employee, FBT exempt)
- $2,650 Meal, Entertainment & Holiday Benefit ($5,000 grossed up per employee, FBT exempt)
- Type in your ABN and scroll down to the Charity tax concession status.
- You will see FBT Exempt or FBT Rebate.
Employees can salary package items up to $15,900 p.a. without paying any FBT or Pay As You Go (PAYG) Tax. This works out to be $611.50 per fortnight
Employees can salary package up to $15,900 p.a. without paying any PAYG tax, but there will be a percentage of FBT payable. If the FBT is a lower amount than your PAYG then there is a benefit to you.
The information provided here does not offer a complete overview of applicable taxation methods. The examples shown do not use or consider any individuals own financial circumstances at all. All users must not rely on or consider any results generated as personal taxation advice. NSP is not licensed to provide taxation advice and recommend you seek independent financial advice. Salary Packaging will adjust your salary amounts and may, in some instances, be unsuitable for some employees.
FBT Exempt example
A proportion of your salary each pay is tax-free.
- As you know, tax is usually taken from your salary before you spend it.
- If you choose to salary package the $15,900 & $2,650 benefits, that money is deducted from your pre-tax salary.
- You pay tax only on the remaining portion of your salary, not the salary packaged money, significantly reducing the income tax you pay, resulting in increasing your take-home pay.
Table showing an example of additional take home pay of a FBT Exempt employee utilising the $15,900 & $2,650 Salary packaged benefits
Additional Pay Per Fortnight
Additional Pay Per Annum
Package $15,900 everyday general living expenses
You may choose to package a range of items, such as your mortgage, rent, school tuition fees, private health insurance or even a personal loan repayment, or you may decide to use our convenient Beyond Bank Salary Packaging Payment Card to package everyday living expenses including groceries, clothing and utility bills
Pay your mortgage or rent with the everyday general living $15,900 benefit
Enjoy $2,650 meal, entertainment & holiday benefit
This benefit allows you to package breakfast, lunch and dinner with your friends or family as a restaurant, food and beverages for special occasions such as a wedding or anniversary. Or, you can pay for your next holiday with this benefit, including the accommodation, car hire, and all your food and drinks.
Employers: We would welcome the opportunity to look after you and your staff. Please reach out and schedule in a time to have a chat with us.
Employees: Your employer will need to have engaged our services for you to take advantage of these benefits as well as our financial wellness program. Please feel free to contact us if you have any questions. We hope to be able to help you in the not to distant future.