Working for charity
Saturday 16 June, 2007 | Ask The Expert
Q:
Q: After years in a corporate role I am thinking of reducing my stress levels a little and have been offered a job working for a charity. They've said they can 'package' things that are FBT free. Is this worthwhile?
Our expert is Nick Bruining CFP a financial planner and talkback radio financial advisor.A: FBT or Fringe Benefits tax applies to those benefits a boss provides to you at no or at reduced cost. FBT is payable by the employer at 46.5% which is usually passed back to the worker so for most employees, fringe benefits don't stack up. One exception are those 'Public Benevolent Institutions' which can offer FBT free goods or services for employees of around $14,000 pa. Many package travel, insurance or mortgage payments this way and for a high income earner, it's similar to earning another $30,000 pa. Basically, it adds up for any employee that's offered it.
