Even crazier (and legal) salary packaging ideas

In the National Tax Liaison Group FBT Subcommittee (yes I have sat on this committee and it is full of FBT nerds…) in November 2005 the Commissioner confrimed that, as an employer can provide a benefit to an employee for their long service valued at $1,000 after 15 years, increasing by $100 every year after that, and there is no FBT payable, an employee could ask their employer to package a long service award in their 15th year worth $1,000, then another $100 in the 16th year, then another $100 in the 17th year, and so on.

Just remember the benefit truly needs to be in recognition of long service and available to all employees so have a policy in place that allows this.

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About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
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