Good360
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  |  Innovation

Salary Packaging Changed Forever


Thursday, 3rd December 2015 at 11:06 am
Staff Reporter
Not for Profit employers need to look closely to new legislation in relation to the capping of salary packaged entertainment fringe benefits and get the right salary packaging program to suit their organisations.

Thursday, 3rd December 2015
at 11:06 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Salary Packaging Changed Forever
Thursday, 3rd December 2015 at 11:06 am

Not for Profit employers need to look closely to new legislation in relation to the capping of salary packaged entertainment fringe benefits and get the right salary packaging program to suit their organisations.

Legislation was passed on 25 November 2015 in relation to the capping of salary packaged entertainment fringe benefits. Like all new laws, employers need to look closely at the legislation and see if there is any potential upside.  

“At Advantage Salary Packaging we think there is if you have the right salary packaging program,” chartered accountant and in-house taxation expert, Anton Gaudry, said.

The changes will apply from 1 April 2016. Salary packaged meal entertainment and holiday accommodation (venue hire) will only qualify for FBT exemption (or the FBT rebate) up to a grossed up value of $5,000 ($2,550 "cash" value).  

This is a dramatic change from the currently uncapped concessions. Remuneration structures will need to be adjusted accordingly.

Salary packaged meal entertainment and venue hire will also be reportable on employee Payment Summaries. This relates to benefits provided from 1 April 2016, which will first be reportable on Payment Summaries for the year ended 30 June 2017. The reporting will have implications for employees with Centrelink payments, HELP debts and child support from 1 July 2016.

Gaudry said the new laws change the game.  

“We now have restrictions which have potentially removed some of the salary packaging excesses.  However, it also means people will now look for other salary packaging options.  Novated car leases in particular will now come into play for more people.  Employees and employers may need to adjust their thinking,” he said.  

“We also think there are opportunities.”

Visit www.salary.com.au for more information on salary packaging. Contact Anton Gaudry here.




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

What is big little brush?

Contributor

Thursday, 23rd May 2019 at 8:35 am

Inclusion is everybody’s business

Contributor

Thursday, 23rd May 2019 at 8:00 am

‘One person’s extra is another person’s essential’

Contributor

Tuesday, 21st May 2019 at 7:30 am

How to do more with less

Contributor

Tuesday, 21st May 2019 at 7:15 am

POPULAR

Morrison vows to prioritise NDIS following election win

Luke Michael

Monday, 20th May 2019 at 4:05 pm

Guide dogs business venture set to shake up traditional charity model

Maggie Coggan

Monday, 13th May 2019 at 4:11 pm

Australia set to face UN scrutiny over disability rights

Luke Michael

Friday, 17th May 2019 at 4:45 pm

Destiny Rescue
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!