FBT Q&A – A list of salary-sacrifice benefits?

From an FBT and income tax perspective there is no restriction on the types, or amounts, of benefits that can be salary sacrificed by an employee. Refer to Taxation Ruling TR 2001/10 for further guidance.

As an FBT taxable employer, you are not eligible for the FBT capping thresholds. In consequence, any salary sacrifice arrangement, as a general rule, should be structured in the following order:

  1. Exempt benefits – for example:
  • Portable electronic devices;
  • Computer software;
  • Protective clothing;
  • Tools of the trade;
  • Briefcases;
  • Airport lounge memberships;
  • Relocation costs; or
  • Superannuation (be careful not to exceed employees concessional contributions cap – currently $25,000 per annum).
  1. Otherwise deductible benefits – for example:
  • Self-education courses and conferences; or
  • Investment loan interest.
  1. Concessionally taxed benefits – for example:
  • Cars;
  • Living away from home benefits; or
  • Certain remote area concessions.
This article provides a general summary of the subject covered and cannot be relied upon in relation to any specific instance. It is not intended to be, nor should it be relied upon as, a substitute for professional advice. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use.