Depending on your tax status, you could unlock big tax savings on essential expenses for employees, to help ease cost of living pressures.
Paying for some everyday living costs from their pre-tax income can provide generous tax savings for people working in some Healthcare,¹ Not-for-profit, Disability and Aged care and Private Education² organisations.
Eligible employees can package costs up to a certain capped amount each Fringe Benefits Tax (FBT) year (1 April - 31 March).
Employees could salary package mortgage, rent or personal loan repayments. They only need to provide supporting documentation once then we'll set up ongoing deductions and payments.
For variable expenses, including groceries and credit card payments, employees simply need to submit regular claims with proof of payment. It’s easy to manage through their online account.
Salary packaging everyday living expenses is simple with the Smart Salary Packaging and Meal Entertainment card. It's a Mastercard that’s loaded with employees' pre-tax dollars which can be used to pay the bills on packaged living expenses (and meal entertainment expenses if they are also being salary packaged).
Below are the organisations which can offer the everyday living expenses benefit, and the caps that apply.
Cap of $9,010 each FBT year
Cap of $15,900 each FBT year
This is general information only. Before entering into any salary packaging or novated leasing arrangement, employees should consider their own objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon their own particular circumstances. The availability of benefits is determined by the employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a Smart™ company.
The Smart Salary Packaging and Meal Entertainment Card is a prepaid, reloadable Mastercard issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Please consider if this product is right for you. Read the Product Disclosure Statement (PDS) and the Target Market Determination relating to this product before making any decision. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.
1. Healthcare organisations with PBI 17 tax status.
2. May not be tax-effective for Private Education employees, particularly where employee earn less than $120,000. FBT is payable, however they will be eligible for a 47% rebate. The rebate for the 2018 FBT year onwards is 47% of the gross FBT payable, (subject to a cap of $30,000).
