I Work for a Charity Organisation, How Much Can I Salary Package?

I work for a Charity Organisation, how much can I Salary Package?

If you’re employed by a not-for-profit or charity organisation, we have some good news.

Eligible workers can  salary package  up to $15,900 in living-expense items that attract Fringe Benefits Tax (FBT) – which could lower your taxable income and potentially increase your disposable income each year.

That's $15,900 annually!

What this means is that, dependent on your employer, you could be eligible to package up to $15,900 on costs that you’d ordinarily incur anyway – such as groceries, utility bills and mortgage or rent repayments. But now you’d be paying for them with tax-free dollars. (You can package a dedicated amount to just one of these, or spread it over any combination of them.)

But wait there’s more ($2,650 more)!

Additionally, you may also be entitled to package up to $2,650 in  meal entertainment or venue hire.

And, as with other sectors, not-for-profits can package as many FBT Free benefits as they like – including self-education and work-related expenses – and they can also take out a  novated lease  in addition to the aforementioned caps.

How much could you save?

Let’s show you the potential difference in take-home pay when you salary package up to $15,900 in Living Expenses and $2,650 in Meal Entertainment per FBT year.

Item
No Packaging
Packaging 2024/25 Tax Rates
Salary (Estimated)
$60,000
$60,000
Living Expenses
$0
-$15,900
Meal Entertainment / Venue Hire
$0
-$2,650
Net Cash Salary
$31,462
$36,796
Net Employee Benefit
$5,334

Potential financial benefit on Living Expenses and Meal Entertainment.

Salary packaging example for Charity employee

These tax exemptions can be significant – and definitely something to consider if you’re ever in the position of weighing up a job offer from a not-for-profit against a private company. Base salary doesn’t always give the full picture.

To find out if you’re eligible, speak to your employer, get in touch online, or give us a call on 1300 123 123.

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