Jan 30 2014
Changes to the FBT Rate – How it will affect Salary Packaging
As we revealed in January, the threshold limits for Health, Charitable and Rebate Industry Employees will be changing in 2014. This is due to the Medicare Levy increase to fund the new National Disability Scheme.
As the FBT rate references the Medicare rate, the Gross Up Factors and Threshold Limits will change in 2014-15 salary packages.
The FBT rate and Gross Up Factors will change to the following;
The tax-free threshold limits for Health, Charitable and Rebate Industry Employees will decrease as follows;
* This is a decrease of $84.83 annually or $3.26 per fortnight
* This is a decrease of $149.71 annually or $5.76 per fortnight
Remunerator will be providing your employees with individual detail on exactly how the threshold changes will affect their salary packaging via a separate communication.
Your employees are requested to view their 2014-15 package Confirmation Report online to understand the new salary deductions and payments and advise us of any changes by no later than Friday 28th February, 2014.