Do you work in the PBI sector? That is, for a not-for-profit organisation, charity or hospital? You may be eligible to salary package your everyday expenses through an Everyday Purchase Card and save on taxes, if your employer offers this benefit.

Depending on your employer’s status, eligible employees working in a public or private not-for-profit hospital setting can salary package up to a CAP limit of $9,009 per year. Those working for another not-for-profit or charitable employer can package up to $15,899 per year as at 2019.

An easy and convenient way to do this is with an Everyday Purchase Card.

The Everyday Purchase Card can be used wherever Visa or MasterCard are accepted, including overseas, and it can be used for things such as:

  • Groceries
  • Petrol
  • Electricity bills
  • Phone bills
  • Rates
  • Movie tickets
  • Netflix
  • Christmas presents
  • Restaurant meals
  • Gift vouchers

There are a few things the card can’t be used for though, such as:

  • Withdrawing money from an ATM
  • Buying alcohol
  • Transferring money between accounts
  • Loan and credit card repayments
  • Recurring direct debit payments


The way this works, is that each pay, a certain amount of your before–tax pay will be transferred to your Everyday Purchase Card. This card can then be used for your everyday expenses such as your groceries, petrol and bills. These expenses would usually be paid from your after-tax money (i.e. your take home pay). This has the effect of reducing your taxable income at tax time and reducing the amount of tax you pay.

The amount you choose to salary package will still show on your Payment Summary at tax time as a Reportable Fringe Benefit Amount (RFBA). Whilst this reduces the tax you pay, it is still taken into account for other purposes such as HELP debt repayments, Medicare Levy Surcharge, and Child Support. It is recommended to seek financial advice to review your personal situation before setting this up.

Using the Everyday Purchase Card rather than just salary packaging your various expenses is also a lot more convenient. There is a lot less paperwork involved – you don’t need to keep receipts, send in claims or wait to have your expenses reimbursed. Whatever balance is on the card is available for you to spend right then and there. You can check the balance on your card anytime at any ATM, with online banking, or over the phone. Any unspent balance remaining on the card at the end of the FBT year (31st March) simply rolls over to the next year. This will, however, reduce the amount that can be transferred to the card each pay in the subsequent FBT year, otherwise you will go over the CAP limit which won’t be beneficial.

Contact the team at FAA Group today to see if you’ve eligible for a Everyday Purchase Cards and how much you can save!