How much can I salary sacrifice charity?

If you work for a charity or other not-for-profit organisation, you can salary package up to $15,900 each Fringe Benefit Tax (FBT) year for general living expenses. General living expenses covers many of the everyday expenses you would usually pay such as groceries, petrol, mortgage, rent or even school fees.

Who qualifies for salary sacrifice?

To be eligible for salary packaging, you need to be permanent full time, permanent part-time or temporary employees a contract of at least three months duration.

How is salary sacrifice reported to the ATO?

The sacrificed component of your total salary package is not counted as assessable income for tax purposes. This means that it is not subject to pay as you go (PAYG) withholding tax. If salary sacrificed super contributions are made to a complying super fund, the sacrificed amount is not considered a fringe benefit.

What is NFP salary sacrifice?

Salary sacrificing, also known as salary packaging, has particular advantages in the NFP sector. Under such an agreement employers provide a cash portion of the salary up-front and the remainder in the form of non-cash benefits.

What are the benefits of salary sacrifice in Australia?

Salary sacrifice is an agreement between you and your employee, that allows the employee to forego some part of their salary in exchange for other benefits. The primary benefit used in salary sacrifice is the superannuation fund (or ‘super’) which is Australia’s pension program.

How much does a social worker make in Australia?

Social Worker Salary in Australia. AU$78,600. per year. per hour. AU$41.60. per hour. per year.

Can a salary sacrifice company reduce your taxable income?

This can reduce your taxable income and increase your disposable income each pay period. Any employee can salary sacrifice provided their employer is willing to offer the benefits. Many employers provide salary sacrifice through a specialist salary packaging provider.

Can a salary sacrifice be taken out of Super?

The higher your tax rate, the bigger the saving. Note, however, that your employer will only pay their normal superannuation obligations on your income after the salary sacrifice has been taken out, which reduces the benefit to you. There are also maximum amounts you can salary sacrifice before being taxed at more than the 15% contributions rate.