Salary sacrificing for a not for profit

[Bruer]

Hey all,

So I found out that I need to take a 20% pay cut at work. This sucks, but there is potentially an upside. We are a heritage firm, consulting archaeologists and working to aid developers and the mining industry. Our business is developing a not for profit organisation. When formed, all employees will move across to this new NFP organisation.

My question is: working for a NFP, what and how much can I salary sacrifice? Is it the full 15,990? Could I say, salary sacrifice the $15,990 towards my rent?

Any help would be appreciated.

 

[GrumpyPaul]

Financial advice from a brewing website?

Apparently in the bygone days of AHB a bunch of guys invested in a Chinese hop farm.

Some of them never recovered.

But seriously get some good advice to sit tour circumstances.

Salary sacrificing our car worked great for us.

Good luck.

 

[mstrelan]

My wife is a nurse and gets something like that amount towards rent. Check out RemServ, looks like NFP's can get $15,900 towards rent.

 

[mudd]

Hey champ, my missus used to work for non profit. More than 8 years ago but you could claim all living expenses. Rent/ mortgage, groceries, fuel etc.

 

[contrarian]

I have worked for a few NFP and you can salary package things like rent, mortgage, bills, loans and plenty of other things.

The main thing to be aware of is that when it appears on your group certificate they look at the 'grossed up value' of the package. This can make a difference to any HECS debt you may have and influence access to certain government payments like family tax benefit.

I know a few people who have been caught out so its best to talk to an accountant about your specific circumstances.

 

[madpierre06]

I have worked for a few NFP and you can salary package things like rent, mortgage, bills, loans and plenty of other things.

The main thing to be aware of is that when it appears on your group certificate they look at the 'grossed up value' of the package. This can make a difference to any HECS debt you may have and influence access to certain government payments like family tax benefit.

I know a few people who have been caught out so its best to talk to an accountant about your specific circumstances.

This!!! I got burned regarding a HECS debt and difficulties with ATO and C/Link after leaving organisation, when they lodged FB tax return, had to go through dramas to prove I hadn't been paid extra monies. JUst make sure you know ALL implications, accountant is very wise option.

 

[earle]

This can happen because the fringe benefits tax year ends on 31 March. The FB amount reported on your payment summary for the year ended 30 June only has the FB amount to 31 March. Any FB amount for April to June actually ends up on the next years payment summary. I've seen this happen a few times, where people get a payment summary with no wages but they have a FB amount. The thing to remember is that its a timing difference, you've still received a tax benefit in that your taxable income was lower but you still had the same purchasing power. Definitions of income for things like HECS and centrelink benefits have been updated in recent years to include the grossed up FB amounts so people get caught here. When FB amounts are grossed up its done at the top marginal rate, not your personal marginal rate so the grossed up amount seems to be very large. Best to get advice specific to your situation as subtle differences in situation can make a big difference on outcome.

 

[RobW]

It also depends what type of Public Benevolent Institution you are employed by.
You can get an idea of the options using a salary packaging online calculator like this:

https://www.smartsalary.com.au/content/salary-packaging-calculator-0

Unfortunately the FBT rules for meals, entertainment, holidays etc have just changed and that's now capped at $2500 pa.

 

[earle]

You also need to confirm the details of the employers FBT exemption. Some get 100% while others only get 50% and may want you to reimburse them for any FBT they have to pay in respect of your fringe benefit.

 

[Dave70]

1. Declare yourself a religion (Hillsong is already taken, so you'll need another emotive moniker)
2. Get you boss to pay you in 'donations'. Tax free to you, tax deduction to him.
3. ????
4. Profit!

 

[Mardoo]

Valleygrunt?

 

[wide eyed and legless]

The Order of The Holy Grain.

 

[earle]

The Order of The Holy Grain.

dedicated to the search for the wholly ale