Last month I attended the NTAA 2018 Fringe Benefit Tax (FBT) Seminar, during the day we were provided with the changes to 2018 FBT laws for those ‘Rebatable’ and ‘Exempt Employers’. These changes take effect from 1st April which create opportunities for you and your employer.
Those who salary package products such as their mortgage, health insurance and alike will be subject to the new FBT capping and threshold for concessional taxed FBT employers. The type one and two benefits have also been reduced.
Over the next few weeks we will contact the individuals that this may affect and review the package and have a discussion as to what we need to do, to maximise your package without any additional liabilities.
There are some other housekeeping issues that need to be addressed for claim expenses such as meal entertainment and reimbursements. These are paper based, and we will issue them to the appropriate Salary Packaging employees in the next few weeks.
Did you know that an employer may save thousands by allowing employees to salary package (NTAA FBT Seminar 2018).
It has been noted that many employers are reluctant to offer salary packaging to their employees as they are fearful of an FBT liability that the company may have to pay.
By collecting a small amount of after tax (Post Tax) monies from the employee’s salary packaging this will reduce the FBT liability by the employer to pay any FBT to “$0”.
The employer in fact may get to save thousands in their payroll tax and workers compensation insurance payments, just by offering Salary Packaging to their employee’s depending upon which state they are based in.
Salary Packaging is a great way to save money on tax for both the employee and the employer.
See what you can save, contact us on (03) 8677 0677.