What are cap limits?
Salary Packaging Cap limits are set by the Australian Taxation Office, and specify the amount of before-tax money you can use for certain items each FBT year.
If you salary package capped benefits over your cap limit, FBT will be applied to the expenses – and you could pay tax on the extra.
The FBT cap you can salary package up to depends on the industry you work in.
- Health employees can salary package a range of benefits (including living expenses such as mortgage, rent, utility bills and groceries) up to $9,010 each FBT year.
- Charity employees can salary package a range of benefits up to $15,900 each FBT year.
- Rebatable employees can salary package a range of concessionally-taxed benefits up to $15,900 each FBT year.
- Depending on your employer, health and charity employees could also be eligible to package an additional $2,650 for Meal Entertainment expenses each FBT year.
Disclaimer : This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Employers should independently consider whether a benefits program is appropriate for their organisation and seek advice where appropriate. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your organisation’s approval. Maxxia may receive commissions in connection with its services. Maxxia does not act as your agent or representative (or provide you with any advice or recommendations) in respect of the purchase of any vehicle.