To sniff out your
Sal Pac Benefits
Get Started FAQ’s
Step 1 (Who do you work for?)
The ATO grants different benefits for different sectors. To generate the appropriate quote we will need to know your employer’s FBT status, which will be one of the following:
- FBT Exemption – Subject to capping (Unlimited, $30,000 or $17,000)
- FBT Rebate – Subject to capping ($30,000)
- Full FBT
Where you work matters. You will be subject to ‘Full FBT’ unless your employer qualifies for:
FBT exemption – subject to capping or an FBT rebate
Remember, Sal Pac is about helping address the impact of FBT on various sectors. FAA bring the subject matter expertise to help with the ATO fine print associated with helping with working through the FBT Status and available benefits.
Exempt – Pastoral
Religious Practitioners do not pay FBT
A registered religious institution does not need to be endorsed by the ATO to access these concessions, but it must be registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity with a sub-type ‘advancing religion’ and is an institution.
|Registered public benevolent and health promotion charities||$30,000 per employee|
|Public and not-for-profit hospitals and public ambulance services||$17,000 per employee|
The above list is non-exhaustive, across the two decades of existence has seen numerous exceptions and rulings impact who qualifies for exemptions.
Note: The CAP is calculated on Grossed-Up Taxable Value (GUTV) and equates to around half of the CAP in increased disposable income depending on an items GST status.
$30,000 (PBI) CAP – Charitable, Legal Aid, Medical Research Institute or Aged Care facility
Charitable status granted by Australian Charities and Not-for-profits Commission (ACNC).
$17,000 (PBI) CAP – Public and not-for-profit hospitals and public ambulance services
Exempt from the $17,000 worth of FBT, between $8,172.29 and $9,009.96 of disposable income increase. The term ‘public hospital’ includes government-run hospitals and most not-for-profit privately controlled hospitals operating for the benefit of the public.
$30,000 (Rebatable) CAP
The ATO supports some industries with a rebate rather than an exemption.
Rebate equal to a percentage of the gross FBT payable, subject to a capping threshold. Organisations that qualify for the FBT rebate are referred to as ‘rebatable employers’. Rebatable employers are certain non-government, not-for-profit organisations. Organisations that may qualify for the FBT rebate include:
- registered charities (other than public benevolent institutions or health promotion charities) that are an institution, not established under a government law and are endorsed by us as a tax concessions charity
- certain scientific or public educational institutions
- certain trade unions and employer associations located in Australia exempt from income tax
- not-for-profit tax exempt organisations established for
- musical purposes
- community service purposes
- not-for-profit tax exempt organisations established for the encouragement of
- animal racing
- a game or sport
- not-for-profit tax exempt organisations established for the purpose of promoting the development of
- aviation or tourism
- Australian information and communications technology resources
- Australia’s agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources.
Private Education and Rebatables (Not-for-profit (NFP) non-government agencies (NGOs).
Separate CAP for Meals and Entertainment Benefits
Employers that qualify for the above CAPs and Rebates also qualify for a separate single grossed-up cap of $5,000. This applies to fringe benefits that are salary packaged meal entertainment and entertainment facility leasing expenses.
The following types of salary packaged entertainment are subject to the cap:
- entertainment by way of food or drink.
- accommodation or travel in connection with, or to facilitate the provision of, such entertainment.
- entertainment facility leasing expenses.
The ATO have a list of items that they deem as FBT Exempt including work-related expenses, remote area concessions, novated motor vehicle leasing and additional superannuation payments.
ep 2 (How much do you earn)
Salary Packaging is linked to Income-Tax
Income-Tax is calculated as a percentage of your salary and scales with higher income.
We need to know your approximate salary to calculate the amount of money you don’t need to hand over to the ATO.
Note: Information is only retained if you proceed to checkout for the protection of your privacy.
Tax Brackets are wide, so we only need a rough estimate of your salary:
Tax Rates you save with Salary Packaging: Income Tax + Medicare Levy
$0 – $18,200 You don’t pay tax, so can’t reduce your tax bill with Sal Pac
$18,201 – $45,000 21%
$45,001 – $120,000 34.5%
$120,001 – $180,000 39%
$180,001 and up 47%
If the item attracts GST, add an additional 10% via a refund.
Eg: Fuel running cost of someone earning $90,000 will reduce the pump price by 44.5% with tax benefits and you can still add the 4 cents/l shopper docket discount. FAA can help you Sal Pac any ATO approved car of any age.
Step 3 (Do you live in a remote area according to the ATO?)
Remote Area Housing Benefit and Residential fuel reduction is different to the Remote Area Allowance and can be offered by certain regional employers. This benefit allows employees to package 50% of mortgage or rental expenses and home fuel. There are many terms and conditions, but if you qualify, we walk you through this later.
For most employers, accommodation is in a remote area if it is not in or near an urban centre. Accommodation is classified as being near or adjacent to an eligible urban area and therefore not remote where it is situated is either:
- less than 40 km from an eligible urban area with a census population of 14,000 to less than 130,000
- less than 100 km from an eligible urban area with a census population of 130,000 or more.
If the accommodation is in zone A or B (for income tax purposes), to be remote it must be located:
- at least 40 km from an eligible urban area with a census population of 28,000 to less than 130,000, and
- at least 100 km from an eligible urban area with a census population of 130,000 or more.
The population figures are based on the 1981 Census.
The ATO have a non-exhaustive list of towns that qualify HERE (https://www.ato.gov.au/General/fringe-benefits-tax-(fbt)/in-detail/exemptions-and-concessions/FBT—remote-areas/#List_2)
What types of accommodation?
The housing fringe benefit rules apply only to accommodation that is the employee’s usual place of residence. A unit of accommodation includes:
- a house, flat or home unit
- accommodation in a house, flat or home unit
- accommodation in a hotel, motel, guesthouse, bunkhouse or other living quarters
- a caravan or mobile home
- accommodation in a ship or other floating structure.
What are examples of Remote Area Residential Fuel?
- LPG or Natural Gas for hot water and cooking
- Wood for house heater
Are there other residual fringe benefits available to people in remote areas?
Yes, summary below, but covered in detail in further steps.
The following is a list of reductions that may apply to residual fringe benefits:
- remote area residential fuel
- remote area holiday transport
- overseas employment holiday transport
- relocation – temporary accommodation
- in-house fringe benefits – tax-free threshold
- overseas employees – education of children.
Step 4 (Check your budget and choose how to shop)
Of your Gross Salary of
The Tax you are on track to pay the ATO is:
Lets see if what benefits the ATO offer to reduce that number via Salary Packaging.
Note: Your tax estimate represents the cap of the benefits you can claim.
Add and remove benefits into your shopping cart then review at the checkout
Shop one of two ways:
Step by step with tips and tricks (Good for beginners)
Shop from a table of available benefits
Both ways need a graphic.
Step 5 (sjhgfkjsdhg)
- Download the FAA App and Manage your Sal Pac
How can we help you?
Contact us today to organise an initial appointment with a Salary Packaging Specialist.
The specialist can provide a free financial assessment and evaluate the impact on your individual circumstances.
We provide a holistic service and can assist you in all areas of your financial life.