Salary Sacrifice and fringe benefits tax
Scenario:
My question is, for a not-for-profit business that offers salary sacrifice to its employees, if the salary sacrifice amount is under the exemption threshold of $30,000 per annum, is it required to enter an amount of reportable FBT on the employees’ PAYG payment summary?
Explanation:
Exempt benefits are not fringe benefits (FBT Act s 136(1)). Thus, to the extent that a benefit is exempt from FBT, it does not need to be reported in an individual’s payment summary (FBT Act s 5E, 57A and 123C). It appears that the $30,000 salary sacrificed by the employee does not need to be reported in the individual’s payment summary.