Not-for-profits and Salary Packaging | Pay-rises for staff, at no cost to the Employer

Recent Federal Budget announcements will affect the fringe benefits tax (FBT) concession available to employees of not-for-profit entities (NFPs).

With the FBT rate increasing to 47% from 1 April 2014 and 49% from 1 April 2015, the Treasurer announced that the $30,000 cap for concessionally taxed benefits will also increase to $31,177 from 1 April 2015 ($17,667 for hospitals and ambulance services). Given these changes this is a good time to review your staff’s salary packaging options. continue reading