Tuesday, October 23rd, 2012 - Selectus
Today’s announcement by the Treasurer on an end to the concessional tax treatment of ‘in-house benefits’ where used in a salary packaging arrangement is sad news for employees and employers, according to the Executive Director of the salary packaging firm “Selectus”.

“In-house benefits have allowed some employees to purchase up to $1,333.00 per annum tax free of either goods or services that their employer provides to the general public. It was essentially seen as a benefit that employees received for buying directly from their employer” says Jim McNeilly of Selectus, “and many employees saw the tax savings received from in-house benefits as a reward for supporting their employer”.

McNeilly explains further.

“Examples of employees who traditionally used in-house benefits were teachers, who salary packaged their children’s education fees when the child went to the same school that they were employed by; employees of Councils who could pay a part of their Council Rates tax free and employees of retail businesses who could make purchases of merchandise that their employer sold to the public.”

“Depending on their taxable salary, most employees will lose between $453 and $620 per annum and from our experience, the majority of employee’s salary packaging in-house benefits were middle income earners with salaries of between $50,000 and $80,000” says McNeilly.

While any new salary packaging arrangements have been axed from 22 October, those employees who have existing in-house benefits in place can continue these arrangements until 1 April 2014.

Contact Profile

Selectus


With over 15 years’ experience, Selectus is a leading provider of salary packaging administration and fleet management services to employers and employees.
Jim Mc'Neilly
P: 0411 883 296
M: 0411 883 296
W: www.selectus.com.au/

Keywords

Salary Packaging, Salary Sacrifice, Employee Benefits, Employee Benefits Program, Mini-Budget, Mid Year Economic Fiscal Outlook, MYEFO

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