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:
- General capping threshold – $30,000
- 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.
"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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