Salary Packaging for Non-Profit Employers

Want to get an ‘unfair’ advantage over other employers??

As a Non-Profit employer, you would be entitled to an FBT exemption or rebate.

This means that you can offer to package your employee’s salary in such a way that it provides them with considerable tax savings.

Having this benefit makes you a preferred employer which means you can attract and retain QUALITY staff.

Want to help your staff save tax??

Your staff may benefit from salary packaging a range of everyday costs.
Some examples of these are as follows:

• Home loan repayments
• Rent
• Car repayments & running costs
• Entertainment expenses
• Laptops
• Superannuation contributions above the 9% SGC
• Supermarket expenses

If you’re in a position to give your employees THOUSANDS of dollars extra EVERY year by offering them salary packaging, can you really afford not to?

FBT rebateable employers

For FBT rebateable employers, the FBT rate is effectively reduced from 46.5% to 29% & 31.1% (depending on the type of benefit provided). This rate is applicable for non-cash benefits salary packaged up to $14,529. This means that where an employee’s marginal tax rate is greater than this, they will achieve a tax saving using salary packaging.

The maximum savings available to employees of FBT rebateable employers are as follows:

Employee Wage Charitable institution $50,000 $1,194 $60,000 $881 $70,000 $513 $80,000 $513 $90,000 $1,513

FBT exempt employers

Employees of public and not-for-profit hospitals should salary package up to $8,233 of non-cash benefits, whilst employees of Public Benevolent Institutions (PBI’s) should salary package benefits up to $14,529.

An employee of either of these types of employers are able to receive benefits up to these amounts without paying any tax.

The savings for each of these types of employers assuming they salary package to the levels listed above are as follows:

Employee Wage Public & NFP hospital PBI $40,000 $3,088 $5,005 $50,000 $3,148 $5,485 $60,000 $3,088 $5,485 $70,000 $3,088 $5,485 $80,000 $3,604 $5,941 $90,000 $3,868 $6,829 $100,000 $3,868 $6,781

These examples show how salary packaging arrangements can work. It is only intended to be a guide and you should not act solely on the basis of this information. Please contact Return Salary Packaging or your financial advisor for further advice.

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