Maximise your cap limit before end of FBT year
There are a host of salary packaging benefits you can take advantage of up to your allotted cap, $9,010 for eligible healthcare employees and $15,900 for eligible charity employees. If you do not use your full salary packaging limit within the FBT year, the funds will remain in your account for you to use in the next FBT year which begins on 1 April 2024.
To maximise your potential tax savings, however, you must claim or spend to your full cap limit before the end of the FBT year.
If you have a balance of unspent/unclaimed funds at midnight on Sunday 31 March 2024, you do not lose this money, which is a common misunderstanding. The balance will stay on your account for you to spend in the new FBT year, which begins on Saturday 1 April 2023. However, these funds will form part of your new cap, which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year.
Luckily for you, the end of each FBT year ends on the same date – 31 March – so there is plenty of time to plan.
Let’s take a look at the key dates and the things you need to know.
Maxxia Wallet Card
If you salary package the Maxxia Wallet, reduce the balance to zero by 31 March 2024 to get the most out of your money this FBT year.
Do: Remember to use your Maxxia Wallet! And if you’re running out of ideas, did you know you could use your salary packaging to buy a gift voucher? This will help clear the Living Expenses balance on your Wallet but you can use the voucher at a later date.
Don’t: Leave it until the last minute to spend your balance!
Here are some more ideas for helping to reduce the balance on your card:
- Give your other cards a rest and use your Maxxia Wallet as much as you can throughout January, February and March!
- You can use your Maxxia Wallet to buy gift vouchers which can be used at a later date, while still reducing your balance – note that this applies to Living Expenses only.
- Why not pre-pay some bills? Another easy way to reduce the balance on your card as much as possible before 31 March – note that this applies to Living Expenses only.
Do I need to claim/spend my Venue Hire and Meal Entertainment balance?
Yes. You can claim and/or spend up to a combined cap limit of $2,650 each FBT year for Venue Hire and Meal Entertainment, as both benefits share the one cap limit.
You may also decide to package Venue Hire benefit alone. The cap limit of $2,650 still applies each FBT year.
Venue Hire allows you to claim:
- holiday accommodation
- venue hire for events
We highly recommend sending any final claims for Venue Hire and Meal Entertainment by Monday 25 March 2024 to ensure they’re part of your 2023/24 Fringe Benefits Tax (FBT) year spend. Any Meal Entertainment balance on the Maxxia Wallet card needs to be spent by Sunday 31 March 2024.
For those about to claim, we salute you
If you send us claims, you need to make sure you send them in as early as possible, we highly recommend you submit any final claims by no later than Monday 25 March. We must have enough receipts/claims to cover the full cap limit, right up until 31 March 2024. When it comes to claiming, the more the merrier.
Do: Claim early and claim often.
Don’t: Send us claims with a total that is less than your remaining limit. (For example: if you have $2,000 remaining of your cap limit, try and send us a claim for more than $2,000!)
Tired of claiming? Why not try the Maxxia Wallet card?
Available to eligible Health and Charity employees, if you wish you can nominate to have your balance transferred to a Maxxia Wallet card, which you will need to spend by Sunday 31 March 2024. Please let us know via email, LiveChat or online request if you would like a Maxxia Wallet card sent to you.
Spending with the Maxxia Wallet card could mean less stress at the end of FBT year because there’s no claiming, no forms and no fuss. The Maxxia Wallet is also GST exclusive, which means you could package right up to the full cap limit each year.
Organise your contribution
Sending in your claim is half the process; make sure you have advised us how much to deduct from your pay, and when. Large claims sometimes need a few pay-cycles to reimburse fully; factor this in. If you need to amend your March contributions, you must do so two weeks before the applicable pay date.
Unsure if you’re on track to reach your limit? Contact us to request a cap limit check-up. We can help make sure your fortnightly contributions are on track to reach your limit – be it for Mortgage, Maxxia Wallet or Meal Entertainment.
Take this information on board and you will cruise into March knowing you’re getting the most out of this FBT year.
What is a ‘rollover’?
A rollover occurs when a benefit balance is not spent or claimed and is allowed to ‘rollover’ from 31 March 2024 to 1 April 2024 into the new FBT year.
You do not lose this money; it stays in your account allocated to the existing benefit. However, because the FBT year has now changed, when you do spend or claim the money it is now reported in the (new) current FBT year, not the previous one.
Which means you may lose the potential tax savings on the cap limit you have not used from the previous FBT year.
Contacting Maxxia during the EOFBTY
While we aim to do our absolute best, the EOFBTY can mean extended call-wait times. We recommend the below options for keeping in touch with us during this time.
- Check out more info at maxxia.com.au/fbt-year-end
- View your account via Maxxia Online
- Chat with us on LiveChat
- Submit an enquiry via our Contact page
- Follow us on Facebook and Instagram to stay up to date with the latest information.
Check out our EOFBTY quick tips for more information.
The information about the Maxxia Wallet is general in nature and does not take into account your personal objectives, needs and circumstances. You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement before making any decision. *Subject to applicable cap restrictions. The Maxxia Wallet is issued by Heritage Bank Limited ABN 32 087 652 024, AFSL 240984 ACL 240984. Maxxia Pty Ltd (Maxxia) acts as authorised representative of EML Payment Solutions Limited ABN 30 131 436 532, AFSL 404131 as distributor of the Maxxia Wallet. For more information about the card please read the Product Disclosure Statement.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.