Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Retirement

Using fringe benefits for your benefit

By Grace Ormsby · August 15 2019
Reading:
egg
egg
egg

Retirement

Using fringe benefits for your benefit

By Grace Ormsby
August 15 2019
Reading:
egg
egg
egg
HLB Mann Judd

Using fringe benefits for your benefit

author image
By Grace Ormsby · August 15 2019
Reading:
egg
egg
egg
HLB Mann Judd

A chartered accountant has called salary sacrificing “a must” for employees working for fringe benefit tax-exempt or rebatable employers such as charities, hospitals or not-for-profit organisations.

In conversation with nestegg, HLB Mann Judd manager Helena Yuan CA said she would encourage all employees to consider taking up a salary packaging or sacrificing arrangement if they have the opportunity to package FBT-exempt or concessionally taxed items.

She also considered salary sacrificing as an effective option for mid-to-high income earners in the private sector.

nestegg has previously reported that there are no statutory limits on how much of an employee’s remuneration can be salary sacrificed

But the chartered accountant has flagged that there are still limits to the amount able to be sacrificed from a salary, generally driven by FBT exemption limits or the type of benefit being concessionally taxed.

Advertisement
Advertisement

For FBT-exempt or FBT rebatable employers, there is an FBT exemption capping threshold of either $30,000 or $17,000 for each employee, Ms Yuan said.

Where the employer is providing in-house benefits, a $1,000 FBT exemption threshold also applies.

Ms Yuan explained too that when an employee makes additional super contributions under salary sacrifice, he or she “should make sure the total concessional (before-tax) contributions do not exceed annual cap”.

For 2019-20, the cap is at $25,000.

Ms Yuan noted that the concessional contribution is also inclusive of the 9.5 per cent compulsory super guarantee contributions, plus any salary sacrifice contributions and any personal contributions an employee intends to claim a tax deduction.

 

 

Using fringe benefits for your benefit
HLB Mann Judd
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.