Fringe Benefits Tax (or FBT): For Australian executives the point as which the top marginal tax rate kicks in can be significantly impacted by the provision of rewards. For some, an additional seemingly harmless reward can push their tax rate up and cost the individual more: somewhat of a disincentive. FBT has become easier to manage though in the context of rewards. FBT kicks in at AUD$300 per "event". The spend does not aggregate though and as long as your program deals with incentives of less than AUD$300 per time, an employee can receive several in a given year without an impact. There are some benefits that are exempt too: although this appears to be an ever changing list! Click here to visit the ATO site.
11 August 2009
rewards and recognition A to Z (F=Fringe Benefits Tax...)
Fringe Benefits Tax (or FBT): For Australian executives the point as which the top marginal tax rate kicks in can be significantly impacted by the provision of rewards. For some, an additional seemingly harmless reward can push their tax rate up and cost the individual more: somewhat of a disincentive. FBT has become easier to manage though in the context of rewards. FBT kicks in at AUD$300 per "event". The spend does not aggregate though and as long as your program deals with incentives of less than AUD$300 per time, an employee can receive several in a given year without an impact. There are some benefits that are exempt too: although this appears to be an ever changing list! Click here to visit the ATO site.
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