Make the most of the benefits available
Salary packaging the maximum amount allowed each Fringe Benefits Tax (FBT) year means you’re making the most of this employee benefit. The maximum for employees of not-for-profit organisations is $15,900 (this is also known as your ‘tax free cap’) and $9,010 for hospital and healthcare employees. Salary packaging to the ‘cap’ means you’re using the maximum amount you’re allowed to salary package.
Salary packaging is an easy and convenient way to pay for regular expenses such as your mortgage or rent, credit card and personal loan payments, or even regular daily items such as groceries and petrol. There’s also lots of other benefits you can include in your salary packaging arrangement.
Your salary packaging deductions
When you salary package for an entire Fringe Benefits Tax (FBT) year (1 April to 31 March) the maximum you can salary package is either $611.54 per fortnight or $305.77 per week. Salary packaging this amount means you are making the most of your benefit, but you can choose to salary package a lower amount if you prefer.
There are some instances where, even though you are salary packaging the maximum allowed, your salary packaging deductions can be above or below these amounts.