Salary Packaging

Question Our organisation is planning to allow salary sacrifice for our employees in regards to their income protection insurance and life insurance policy costs. We will reimburse these policy costs and reduce their pre-tax salary accordingly. Can you please let me know if it will result in a fringe benefit tax liability or is there […]

Superannuation guarantee salary sacrifice integrity measures have now been tabled by the Federal Government by way of an Exposure Draft. The ‘Treasury Legislation Amendment (Improving Accountability and Member Outcomes) Bill 2017: superannuation guarantee (salary sacrifice integrity measures)’ proposes amendments to ensure that an individual’s salary sacrifice contributions cannot be used to reduce an employer’s superannuation

STP Update In last month’s newsletter we provided an update on Single Touch Payroll (STP), highlighting progress towards the implementation of STP for employers with 20 or more employees from 1 July 2018. This month’s news is that the Federal Government has decided that employers with 19 or fewer employees will have to move to

Last year, we drew attention to the Brisbane Bears Case. This decision dealt with payroll tax in the context of payments made by a sporting club to sportspersons for use of their images etc. Payroll tax is a state/territory tax. However, as the earlier article noted, payments for use of player images also implicitly raise

Question An employer is considering allowing employees to salary package income protection insurance – what tax issues arise? Answer We assume the proposed salary packaging arrangements will be implemented in a way that would be recognized by the ATO as effective. In this regard see the general ATO ‘Requirements for an effective salary sacrifice arrangement’

Unless an employee is solely a ‘work from home’ employee, then travel to and from work is a necessity of working life. Many employees catch public transport to and from work to avoid the expense and traffic involved with driving. If an employer has employees who regularly commute to and from work by bus, is