FBT Q&A ‘ Salary Sacrifice for cost of skin checks

FBT, Public
Author: Michael Doran
1 Mar 2017

Question:

We would like to know that staff can salary sacrifice the payment that they pay for skin checks?

Answer:

Staff can salary sacrifice any expense item which they incur, provided the employer agrees to it and the benefit is sacrificed from prospective salary (i.e. salary yet to be earned).

The real issue here is whether the skin checks attract FBT. It is likely the expenditure could qualify for exemption as work related medical screening/preventative health care – refer section 58M FBTAA.

For this exemption to apply the following general conditions must be met:

  1. The benefit is an expense payment benefit, a property benefit or a residual benefit;
  2. Work-related preventative health care is provided to the employee;
  3. The purpose of the preventative health care must be wholly or principally to prevent the employee from suffering work-related trauma; and
  4. The preventative health care must be made available to all employees at risk of suffering work-related trauma.

We would need you to provide further information addressing the above criteria in order to ascertain with more certainty whether the exemption is available.

Another possibility, provided the cost is less than $300, is the minor benefit exemption, particularly if the test is a once a year screening.

This article provides a general summary of the subject covered as at the date it is published. It cannot be relied upon in relation to any specific instance. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use. It is not intended to be, nor should it be relied upon as, a substitute for professional advice.

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