I'm trying to get my ahead around this complex area of FBT and Salary Sacrifcing. I've looked up an ATO example this morning on their website and I'm having trouble understanding how they've come to one of their caclulations. You'll see in the link I've shared below, there is an example provided. In the example, they've used the statutory method for working out the taxable value of the fringe benefit provided to the employee. It says that if the employee was to salary sacrifice the full amount, it would be $17,353. Can someone please explain where the $17,353 has come from. Also, in the third column, the scenario is that the employee has paid an after tax contribution of $7,000, which is the taxable value of the fringe benefit using the statutory method. Why then does the employee need to SS an extra $4,145. I understand that's the different between the grossed up amount of $13,207.60 and the $17,353, but I'm unsure why the after tax contribution of $7,000 isn't adequate.
Salary sacrificing for employees | Australian Taxation Office (ato.gov.au)
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