What’s the difference between capped and above-the-cap benefits?
If you work in the public health or charity industry, you will notice that benefits may be ‘capped’ or ’above the cap’ – depending on the expense type and sector you work in.
Most above-the-cap benefits – such as novated leasing a vehicle, work-related devices, self-education and additional superannuation payments – have no limit and do not incur FBT.
Examples of “capped” benefits – that is, benefits that can only be packaged up to a certain amount – for health and charity employees include:
- mortgage and rent payments/living expenses (up to $9,010 for public not-for-profit health employees and $15,900 for charity employees)
- Meal Entertainment and venue hire (additional combined cap limit of $2,650 each FBT year).
Examples of "above the cap" benefits for health and charity employees include:
- novated leasing a vehicle
- work-related expenses (for example, laptops or self-education)
- additional superannuation payments.