In addition, the government offers NFP's the facility to provide employees with an FBT exempt meal entertainment benefit which is not subject to the $30,000 grossed up FBT taxable exemption limit. This allowance can be used by employees to pay for their dining out expenses (including drinks and taxi fares to and from their dining venue, but excludes takeaway meals), catering for special occasions, such as wedding, engagement or birthday party, all in pre-tax dollars. However, implementation of this allowance by eligible organisations across the country is very low.
There is a perception within the sector that salary packaging is too complex. This perception has probably been formed because a small proportion of the employee population, such as those with HEC's debts to pay off and personal investments or those receiving some sort of Centrelink payment, may not receive any benefits from salary packaging and need to carefully consider the ramifications before entering into any packaging arrangements.
The number and range of items available varies according to employer type and the employers preferences.Listed below are examples of items that can be salary packaged.
- Credit Card repayments
- Mortgage repayments or rent
- Superannuation
- Motor vehicle leases and expenses
- Health Insurance
- Income protection insurance
- Household Expenses
- Notebook/Laptop Computers
- Entertainment
- Household expenses
In summary, each organisation offers a different salary packaging proposal, so it is best to check with the specific organisation, but this should give you an overview of what it is, and if you were to be offered it, a greater understanding of what it could mean for you.
