FBT Employer Types
Different employers have different ways they treat fringe benefits. This is why some employees can package rent and mortgages and other can’t. Please refer to your employers as to what you can and can’t salary package.
A public benevolent institution (PBI) is distinct from a charitable institution. Generally, an organisation is recognised as a PBI if its principal objects are the relief of poverty, sickness, suffering, distress, misfortune, destitution or helplessness, and its activities are carried on without the purpose of private gain for particular people.
Employees of a PBI can Salary Package (pre tax payment) up to $15,900 of benefits each FBT year.
- PBI Public Hospitals and Ambulance services.
As the name suggests this includes all employees of Public Hospitals and government ambulance services.
Employees can salary package up to $9,010 of grossed up benefits each FBT year.
This is for the vast balance of employers. Private companies and the balance of government staff outside of the hospitals and ambulance services fall into the full taxable category and as such have no taxable exemptions or rebates under the current ATO FBT regulations. However for employees in this category, salary packaging, motor vehicles and work related expenses generates significant savings.
Pay the expenses you would normally pay after tax including fuel, tyres, services, registration and insurance before tax and save!
For Example – An employee on $50,000 per annum, travelling 15,000 kms each year in a small $20,000 hatch will save $2,049.
That’s nearly $40 per week for paying the same bills before tax!
***Please check with your employer regarding your specific benefits.