Is it really an effective salary sacrifice arrangement?

The concept of ‘salary sacrifice’, or ‘salary packaging’, has been a part of modern remuneration arrangements for many years now. In Taxation Ruling TR 2001/10 (issued way back in 2001) – the ATO outlines what it considers is an ‘effective’ salary sacrifice arrangement. In this article, we explore a recent case that involved a far … Read more

ATO announces novated lease data matching project

ATO announces data matching program on novated leases – employer implications? The ATO has advised it will be undertaking a data matching program with information sourced from novated lease providers in respect of the years 2018-19 to 2022-23. The ATO will source data from the following novated lease providers: Eclipx Group; LeasePlan; LeasePLUS; McMillan Shakespeare … Read more

Arrangements to access the FBT remote area housing exemption – what to watch out for

Non-arms length remote area housing arrangements? In 2020, in a three-part series (*links listed at the end of this article) we looked at the various remote area related housing concessions available under the Fringe Benefits Tax Assessment Act 1986 (‘FBT Act’). One of those concessions was the remote area housing exemption. The remote area housing … Read more

Salary sacrificing e-bike costs

Question Our organisation is looking into the possibility of offering our employees the option to salary sacrifice electric bikes. It is our understanding, providing the e-bike is restricted to travel to and from work and other private use that is minor, these e-bikes are exempt from FBT under subsection 47(6). If so, is it possible … Read more

The importance of adequate and current substantiation of salary packaged expense reimbursements

What happens if an employee has not (and cannot) provide an employer with adequate and current substantiation of salary-packaged expense reimbursements? Are there problems for both the employer and the employee? Consider this. Mary commences employment with a PBI in 2017 and elects to enter into a salary sacrifice arrangement to access her PBI exemption … Read more

Member Q&A – Can child support payments be salary packaged?

Question Can an employee salary package child support payments? Answer The rules regarding salary packaging are set out in Taxation Ruling TR 2001/10 and are summarized on the ATO website (click here) Subject to the usual rules being satisfied regarding what constitutes an ‘effective salary sacrifice agreement’ an employee’s child support obligations can be included … Read more

Member Q&A – Can you salary sacrifice the cost of a laptop computer bag with no FBT payable?

Question We offer salary packaging on electronic devices providing certain conditions are met, the main condition being that the device is principally used for work purposes. In the case of laptop computers, often the staff member will purchase a laptop bag at or around the same time that they acquire the laptop. Can the cost … Read more

Salary packaging – Salary sacrifice of accrued leave

Timing is crucial when it comes to salary sacrificing leave entitlements. The Commissioner’s view on the taxation implications of salary sacrifice arrangements is discussed in Taxation Ruling TR 2001/10. A salary sacrifice arrangement is an arrangement between an employer and an employee whereby the employee agrees to forgo part of their future entitlement to remuneration … Read more