I'm a government employee and am salary sacrificing towards my remote area housing loan interest payments.
According to the ATO, the employer is liable for paying the FTB, however the employee may be asked to contribute to the payment of the FTB.
The salary sacrifice packaging company ([removed by moderator]) that my employer is with requires the FTB to be payed in full by the employee, making the full contribution towards the FTB liability.
"Fringe Benefits Tax
You agree to compensate [removed by moderator] and/or your employer, either by way of additional pre- tax salary deduction or direct payment, for any FBT amounts payable in relation to your salary packaging activities.
[removed by moderator] will perform, on an annual basis, a reconciliation between the collected FBT and the calculated liability to pay FBT for each benefit type provided to you and will report such results of this reconciliation to your employer.
You are responsible for any outstanding amounts of FBT. FBT liabilities will be payable by you through salary deductions, direct credit, or a direct debit arrangement. If you disagree with the amount of FBT payable in a relevant FBT year, you must notify [removed by moderator] within 21 days of the relevant FBT year.
It is your responsibility to manage your FBT and maintain your own records of start and end kilometres and or log book for your vehicle. [removed by moderator] will provide you with reports concerning vehicle usage and potential FBT liabilities resulting from your driving patterns; however, these reports are issued as a guide only.
If you fail to advise [removed by moderator] that you are ceasing employment and continue to use your fuel card after termination of employment any such costs will be subject to FBT, and the expenses and FBT will be directly recovered from you.
Nothing in this clause 10 makes you liable for any FBT amounts payable due to a breach of these Terms & Conditions by, or the negligence of, [removed by moderator]. "
As the FTB is tax deductible by the employer, would the FTB payed by the employee be deductible by the employer or can it be deducted from the employee's salary income?
What would be the benifit of the salary sacrifice when I'm paying for the full FTB liability?
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