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24/07/2006 | FBT Changes affects Salary PackagingRecent changes to the
FBT Legislation
The recently announced 2006 Federal Budget changes to the personal tax rates had an impact on the Fringe Benefits Tax (FBT) rates that apply to Salary Packaging.
The reduction from 47% to 45% of the maximum tax rate meant that the formula for FBT, which is based on this rate (plus Medicare levy 1.5%), also had to change.
The impact of this change, for a PBI status organisation, means that staff who enjoy the benefits of Salary Packaging are now able to spend another $600 per year before they achieve the $30,000 Capping Limit.
CBB has written to all of our Salary Packaging clients offering them various options relating to the FBT changes.
Some clients have elected to increase the fortnightly benefits immediately while others have decided to wait until the next FBT year before implementing any changes.
Given the size of our client base, to implement this change has proven to be a huge task but our clients have appreciated the personal and professional way that the CBB has handled this process.
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