I work for a Charity Organisation, how much can I Salary Package?
If you’re employed by a not-for-profit or charity organisation, then you might just have been kissed by the salary packaging gods.
That’s because the sector has been afforded by far the most generous Fringe Benefits Tax (FBT) exemptions. Private companies, government departments and the education sector attract FBT on most salary packaged items while public and private not-for-profit health workers are rewarded for their service to the community with a $9,010 cap per year.
Charities? A whopping $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.)
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 per FBT year in living expenses*.
|Annual Salary (ex. super)||Net Annual Benefit||Net Fortnightly Benefit|
* See below for Assumptions.
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.
Assumptions: potential benefit of salary packaging living expenses based on an eligible employee salary packaging the full cap limit of $15,900. FBT rates effective 1 April 2018 and PAYG tax rates effective 1 July 2018 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Tax, benefit & Medicare Levy calculations are approximate, and assume no other taxable income is received. HELP repayments and taxation surcharges are excluded. Important information: 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. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may receive commissions in connection with its services. Maxxia Pty Ltd | ABN 39 082 449 036.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.