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

If you work for a not-for-profit (NFP) or charity organisation, we have some good news that could boost your pay.

Eligible workers can  salary package  up to a maximum of $15,900 in living-expense items that attract Fringe Benefits Tax (FBT). This means you could lower your taxable income while paying for everyday costs and potentially increase your disposable income each year.

That's $15,900 annually!

What Living Expenses can NFP Workers' Salary Sacrifice?

Examples of popular living-expense benefits in the not-for-profit sector include:

• Mortgage or rent
• Groceries
• Utilities
• School fees
• Electronic devices
• Loan repayments

... the list goes on. For a more complete list of eligible benefits, click here.

Meal Entertainment and FBT-free Benefits

On top of the Living Expenses you can salary package, you may have extra benefits to sink your teeth into! You may also be entitled to package up to a maximum of $2,650 in meal, entertainment and/or venue hire.

Plus, as with other sectors, not-for-profit employees can access uncapped FBT-free benefits – including self-education and work-related expenses. (Check out the full list of benefits you may be eligible to package here.)

You may also be able to salary sacrifice additional superannuation contributions. This allows you to contribute up to $30,000 a year in concessional (before-tax) contributions, where they are taxed at 15% when received by the superannuation fund. This can be lower than the marginal tax rate for many people.

Novated Leasing for Charity / Not-for-Profit Employees

You can also salary package a car through a novated lease in addition to the cap limits mentioned above. A three-way agreement between you, your employer and a financier, novated leasing is the only form of car finance that allows you to use a combination of pre and post-tax dollars to pay for a car and its expenses, potentially saving you thousands in tax each year.

Employees can also salary sacrifice a car through a novated lease in addition to the cap limits mentioned above.

It also affords you the budget convenience of having your annual running costs – including rego, insurance, servicing and fuel – covered in regular payroll deductions across the course of a year.

Got a HECS Debt and Want to Salary Package?

Good news: salary packaging can help you pay off your university debt sooner. There’s a bit to unpack here but we’ve got you covered – read on to find out more.

Salary packaging FAQs

Keen to learn more about how salary packaging can impact your pay as a not-for-profit worker in Australia? Want to know how to package the costs, how to manage your package, and how to claim? We have all the answers here in our FAQ suite.

Potential Salary Packaging Savings for Charity / NFP Workers

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.

• Annual Salary: $60,000
• Living Expenses Cap: $15,900
• Meal Entertainment Cap: $2,650
• Without Salary Packaging: $31,462
• With Salary Packaging: $36,796
• Net Benefit: $5,334

The tax savings can be significant – and 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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