Salary packaging and FBT

Sorting out Salary Packaging

Put simply, Salary Packaging (also known as salary sacrifice) is an agreement negotiated with your employer where some of your expenses come directly out of your pre-tax salary. You can salary package things like your rent, car payments, childcare, meals and entertainment and superannuation. People do it because it can reduce their taxable income and give them more take-home pay.

Salary packaging is often available to employees (including creatives) who work for a charity or healthcare organization that has concessional Fringe Benefits Tax (FBT) treatment – but many industries offer it in some form or other. If you are a creative entitled to salary packaging, talk to our specialist accountants about whether it would benefit you.

Side note: Fringe Benefits Tax defined

FBT is a tax payable by employers on certain benefits they provide to their employees, which are either in addition to or included in their salary or wages package. Separate to income tax, FBT is calculated on the taxable value of the fringe benefits provided.

We help creative employers set up salary packaging

Are you an employer considering offering these benefits to your employees? While salary packaging can provide fantastic tax benefits, FBT is a complicated tax which needs to be managed properly. Our specialist salary packaging accountants can advise you in this area.

Ensure your Salary Packaging arrangement is costed properly and will actually benefit you.

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