April 19, 2021

Am I eligible to Salary Package?

All employees Australia wide have the ability to salary package as long as they enter into an effective salary sacrifice agreement and the employer pays the appropriate amount of Fringe Benefits Tax (FBT).

In many cases though your Employer will not recommend salary packaging unless the Organisation has some sort of FBT concession. (Note: there are certain benefits that can be provided which do not attract FBT)

This is because in most scenerios salary packaging will otherwise result in a significant Fringe Benefits Tax (FBT) liability for the Organisation.

Thus Organisations which have FBT Exemption are generally more likely to offer Salary Packaging to employees due to the FBT concessions granted by the ATO.

FBT Concessions

There a few tax concessions which apply to particular types of organisations in the non-profit sector.

FBT concessions can enable certain non-profit organisations to reduce or eliminate the organisations FBT liabilty as a result of providing certain fringe benefits to employees.

The following sections discuss FBT concessions and the types of non-profit organisations that can access them: