Salary Packaging Q&A – sacrificing to a mortgage offset account
It is a no-brainer that salary packaging benefits that are fully exempt from FBT under an effective salary sacrifice arrangement will produce a tax saving advantage for employees. It is also clear that no real tax saving advantage ensue for employees where they salary package benefit that are fully taxable under prevailing FBT legislation.
Salary Packaging Q&A – Laptop and otherwise deductible rule
In the circumstances to which the TD 2013/20 applies, the ATO notes that to apply the “otherwise deductible rule” for FBT purposes to reduce the taxable value of an expense payment benefit, the employer needs to determine the notional deductibility of the relevant expenditure, on the assumption that it has not been reimbursed.
We have 2 employees who wish to salary sacrifice to mortgage offset account. Can you confirm they are not allowed to do this?
Question Our Payroll staff have received the following request, from a new employee who is relocating from interstat…
If employees fancy improving their resume and taking a qualification or course related to their current employment, they can package course fees, stationery, text books and student union fees. As these costs will come out of their salary pre-tax, they will of course be reducing the amount of income tax they pay each year.