How does fbt rebate work

For more information about changes to reportable fringe benefits visit the Department of Human Services. There are some general exceptions to the above. For example, no FBT is payable on certain work related benefits that are used mainly in the employee's employment such as mobile phones, a laptop or tablet. Some minor benefits that are provided to employee's are also exempt.

For example, if an employer provides an employee with flowers on their birthday. The FBT regime can be complex, and we recommend organisations seek advice about where they are required to pay FBT and where exemptions may apply. The benefit of this rebate is that the organisation can offer employees non-salary benefits that are subject to the discounted FBT. The Not-for-profit Law fact sheet below explains the application process for endorsement as a Tax Concession Charity.

Exemption for health promotion charities and public benevolent institutions PBIs. This allows the health promotion charity or PBI to provide salary packaging which is attractive to their employees.

This means that FBT is not payable on benefits provided by a health promotion charity or a PBI to its employees, subject to the limit.

This amount is not shown as income in the employee's tax return, and therefore no tax is payable on it and no Medicare levy is payable on it, however the amount is used in various income tests, for example, HECS repayments, child support payments, means tested government benefits, Medicare levy surcharge, and super co-contribution.

That adds up quickly. From a consumer standpoint, rebates are enticing. The promise of money back is a deal many of us cannot pass up, myself included. In fact, they offered us these deals makes them money in the long run.

This is how rebates work for them. See previous reasonings shown above. Rebates can be really good for your budget if the rebate total offers you a lower price point than competitors. Saving money is always a good thing. Some super recognizable rebates that you could be used to seeing in every day to day life may include:. Verizon or another phone company offering a Pre-Paid Visa Gift Card Rebate after the purchase of a new phone or phone line. I mentioned this earlier in this posting. Firestone tires do a mail-in rebate for money back after purchase of tires.

Staples and Office Depot do cashback rebates with special coupons, requiring specific item purchases and are redeemable online and in the mail. Several big named car selling companies offer cashback rebates on car sales. You could also be used to seeing furniture companies offering instant rebates as a sale. Cashback rebate programs can be super easy to obtain and not take nearly as long to have back in your pocket as when dealing with big named companies.

Some rebate programs are simply put- amazing to work with. When there is not nearly as many hoops or red tape to cross through, you can get your money back with less hassle. My earnings really slowed down since I stopped shopping at retailers online. Install the toolbar and be alerted every time you shop online.

EBATES will pop up and remind you of rebates and ask to automatically apply any coupons to your cart, saving you even more money! So I highly recommend joining for those bullet points alone. Ibotta- This one is mostly for groceries. When accepting an NFP job with a salary sacrificing arrangement, employees need to make their own assessment of its impact on their personal finances such as HELP payments, Centrelink benefits or any child support payments.

Note also that salary sacrificing can reduce the minimum superannuation contribution paid by an employer. Discuss with an accountant these consequences for employees having fringe benefit reported in payment summary:. Seek professional tax advice on how to leverage the benefits of salary sacrificing arrangements. For any questions or advice, the Hopscotch team are here to help with a strong track record of working with NFPs to help them grow, focus on their goals and maintain positive public perceptions.

Contact us today to see if your NFP qualifies. What is the NFP advantage? While corporate organisations often package employee salaries to cover a workplace car [repayments], NFP organisations feature a broader range of regular fixed amount expenses in salary sacrifice arrangements, including: car payments car parking rent mortgage repayments school fees loan or credit card repayments everyday purchases such as bills, groceries and fuel.