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.
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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"
- Bono: U2