Tax Savings Strategy 200 | $1,000 In-House Benefits
This strategy involves employee’s salary sacrificing $1,000 of wages income (which is taxable) for $1,000 of employer provided goods or services (which is tax free). The goods or services provided by the employer must be same ones as they sell to their customers. So a clothing retailer for example, could provide $1,000 of free clothing to an employee, while Harvey Norman could provide a $1,000 TV.
The tax benefit is known as an In-House Benefit and under the FBT legislation is limited to $1,000 per employee per year. A benefit provided in excess of that limit will be subject to FBT.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2