Should a rebatable employer be adding FBT liability for salary packaging to their employee’s pre-tax section of their payslip? Or is it a post-tax deduction instead?
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Howdy @dennich,
For rebatable employers. The Fringe Benefits Tax (FBT) liability related to salary packaging is a post-tax deduction.
This means that the FBT liability is:
- not added to the pre-tax section of the employee’s payslip
- but is instead managed through post-tax contributions.
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Howdy @dennich,
For rebatable employers. The Fringe Benefits Tax (FBT) liability related to salary packaging is a post-tax deduction.
This means that the FBT liability is:
- not added to the pre-tax section of the employee’s payslip
- but is instead managed through post-tax contributions.
Thank you for the response @Matt_ATO
The reason I ask is that salary packaging service providers like AccessPay show that the FBT payable is pre-tax in their online calculator. This is the same for SalaryPackagingPLUS's calculator. So essentiall both these providers are mis-leading the actual benefit of these arrangements.
Further, if I re-calculate for FY24 a salary of $140,000 with pre-tax expense of $15,900 and FBT payable of $7,473. Their calculators identify a $1,490.68 benefit if FBT liable is pre-tax. But it should be post-tax which results in a $1,272 loss.
Therefore, not only are they mis-leading but also Salary Packaging for a Rebatable employer costs employees not benefits them?
Would be good to know if these points are accurate?
Thanks,
Christian
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