Tax Planning Strategy 174 | Salary Packaging for FBT Rebatable Employees

Tax Planning Strategy 174 | Salary Packaging for FBT Rebatable Employees

horse race tax

Rebatable employers are entitled to a FBT rebate equal to a percentage of the gross FBT payable, subject to a capping threshold. 
 
Organisations that may qualify for the FBT rebate include:

  • Registered Charities who are endorsed as a charitable institution for these purposes
  • Certain educational, scientific or public educational institutions
  • Trade unions and employer associations
  • Non-profit organisations established to encourage music, art, literature or science
  • Non-profit organisations established to encourage or promote a game, sport or animal races
  • Non-profit organisations established for community service purposes
  • Non-profit organisations established to promote the development of aviation or tourism
  • Non-profit organisations established to promote the development of Australian information and communications technology resources
  • Non-profit organisations established to promote the development of the agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources of Australia.
  • Other non-profit organisations.

    For the year ended 31/03/18, the FBT rebate is an entitlement to a rebate equal to 47% of the gross FBT payable, subject to two capping thresholds as follows:

  1. General capping threshold – $30,000
  2. Salary sacrificed meal entertainment & entertainment facility leasing expenses capping threshold – $5,000 

    To implement this strategy organize a salary sacrificing arrangement with the employer up to the two FBT capping thresholds. Each capping threshold applies separately.

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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

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