This is a question we receive a fair bit. Not just at work, but also at social events once people ask what GO Salary does! And it’s a valid question – salary packaging takes many forms and means different things to different people. Let’s delve a little deeper and cover off some of the questions we’ve had when having the unavoidable ‘so what do you do?’ chat at a social BBQ.

What type of salary packaging do you do?

GO Salary manages salary packaging programs for FBT (fringe benefits tax) exempt employers. This exemption is granted to NFP organisations in a range of sectors such as aged care, disability support, medical research, community services and more. It’s important to note that it’s not just any NFP organisation. The employer must specifically be FBT exempt…and this is where the key differences tend to lie. Although someone did once ask me if I package other vegetables or ‘just celery’.

Isn’t this just salary sacrifice?

Not quite – even though ‘salary packaging’ and ‘salary sacrifice’ are often used interchangeably. Salary sacrifice typically relates to additional superannuation payments. Salary packaging, on the other hand, refers to a wider range of benefits which can be included in an employee’s total remuneration package.

My friend salary packages with GO Salary, but my workplace doesn’t offer it at all. Why?

The most common answer to this question is that you do not work at an eligible NFP employer (see above). Employees at for-profit companies cannot take advantage of the same salary packaging tax benefits as those at FBT exempt NFPs.

Further, some NFPs are also unable to offer the same salary packaging benefits. Only certain NFPs qualify for the FBT exemption. This is why employees of schools, certain bodies and associations, and the government are unable to access tax-free benefits in the same way.

I work at a for-profit company. Can I do any salary packaging at all?

Many employers will offer novated leasing, which is a way of salary packaging a car. This is very popular and can deliver some impressive tax savings. Your employer’s People and Culture team is a good first port of call to find out if novated leasing is available, and if so, who their chosen provider is.

Some smaller salary packaging benefits might also be available, depending on your role and work requirements (e.g. salary packaging laptops and phones). Again, People and Culture will usually have the details you’re after.

I work for an NFP but am not offered salary packaging. Why?

Your employer might have the FBT rebate status, rather than the FBT exemption. Many NFPs have the rebate status, which means they don’t pay full FBT on salary packaging benefits like a for-profit company, nor do they pay zero FBT like an FBT exempt NFP.

Rather, these employers pay FBT on salary packaging benefits, and then receive a rebate back on the amount paid. The employee covers the cost of the FBT incurred by the employer. In many cases, by the time this is worked out, it often results in a negligible outcome for the employee. As such, salary packaging at FBT rebateable employers is relatively uncommon. An exception applies for novated leases, of course.

Is there an easy way to determine my employer’s FBT status?

Yes! You can use the ABN lookup and then scroll down to ‘Charity Tax Concession Status’. Any FBT rebate or exemption will be displayed there.

From time to time, an employer’s status might change. It’s not super common, but it does happen. Your People and Culture team will typically keep you updated.

Where can I find out more?

If you’re an employee, the first port of call is your People and Culture team. If you’re an employer, you can get in touch with us and we can answer your questions.