Tax Planning Strategy 174 | Salary Packaging for FBT Rebatable Employees

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.