Time to review your salary packaging!

monopoly money (2)As we enter the last month of the FBT year (Fringe Benefits Tax), if you are lucky enough to be offered salary packaging  with your employer, now is the time to review it!

There are generous tax concessions for not-for-profit (NFP) organisations including an exemption from FBT.  This means that as an employee of a NFP, you can receive part of your wage as a reimbursement for personal expenses and you won’t pay income tax on this amount!

Depending on who you work for, your salary packaging limit may be $9,010 or $15,900 – either way there is usually a substantial benefit to accessing this opportunity if it is available to you.

This reminder comes now, as you should consider your personal circumstances as you enter the new FBT year and ensure your claims and records are up to date.

One thing you do need to be aware of is that having a HELP (Higher Education Loan Program) debt may impact on the effectiveness of any salary packaging agreement you enter into – so always get advice first!



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