If you work for an FBT-exempt or rebatable employer (such as not-for-profit, sporting clubs, educational institutions or hospitals etc) the ATO’s concessional FBT treatment can save you thousands of dollars each year.
These entities are able to provide employees with benefits (which would otherwise be taxed at 49%) at an effective tax rate of 0% for up to $17,000 or $30,000 depending on the type of institution you are working for. For an employee on the highest marginal rate of tax, the tax saving could be as much as $14,700 each and every year!
Many of these institutions are proactive in informing their staff of the benefits - however, there are also many that are not.
If you work for a not for profit organisation, please contact our office to see if you could be saving tax.