Hi everyone,
In this FBT year, I am working in 3 different states for 3 different government hospitals. I have already claim 2 x $17000 so far. I am going to working in the 3rd state soon, can I claim another $17000 from Feb to April.
TIA
Salary Packaging Multiple Job
terrypoon on 06/01/2019 - 22:03
Comments
I have already claim 2 x $17000 so far.
You can claim it as many times as you like, BUT when tax time comes, you can only claim it once, so you'll be paying tax on that $17k 'free' money
This is wrong… The OP can claim once per FBT year per health service.
This is wrong…
The OP can claim as many as they like during the year, but they really should only claim it once as you say. But as I said above, it all balances out when lodging your tax return. The OP isn't getting these for 'free' as come tax time…….
What is the $17000?
Is this different to the $18200 tax free threshold? And if it's this what does it have to do with FBT? Maybe it's just a hospital thing. I'm confused.
Should be $15,900, shouldn't it?
If you work for PBI, your first $30,000 is not taxed but because $30,000 is assuming 47% FBT rate, the actual "after-FBT" benefit is $15,900 and that's what he meant by $17,000. It is that $15,900 is what he claimed as pre-tax deduction.
After working for two in the same year, I was able to get the FBT deductions for both, but remember it is for the FBT year, March to March.
Most groups like Remserv etc like to streach payments over 12 months. Takes a bit of convincing to do it over shorter, as they do not make as much.
Yes it is a hospital or charity thing.
If working for 2 PBIs in a year but NOT concurrently, you can claim both $15,900 (plus $2,650 meals). That is $15,900 per PBI ABN unless you have 3 group certificates from different PBI ABNs.
Hey sorry burningrage, since you seem to know about PBIs and FBT quick q:
Are you saying you can't work for two PBIs at the same time eg. part-time at both, and maximise the $15,900 salary packaging at both?
Why not? What would happen come tax time, wouldn't both just issue PAYG summaries with a RFBT component and that would be that?
I've found this a difficult thing to find online because everyone gets salary packaging confused with PBI vs non PBI businesses.
Cheers
I'll try to answer some questions here according to my post experience. Things might have changed a bit. Happy to be corrected.
You can work for 2 PBIs at the same time and have $15,900 tax free on both jobs. I did this many years ago. I assume it's still the same.
It will reduce your income tax , but it also jack up your "adjusted taxable income", which might affect your liability of Medicare Levy surcharge, child support, HELP/HECS repayment…etc. For more info, please refer to
https://www.ato.gov.au/individuals/income-and-deductions/inc…
Hope this helps.
@littlepcat: Sweet, that's exactly what I thought too. I see it as the employers liability (and FBT exemption) rather than the employees.
I'd love to get a second job 2 days a week with a PBI to get some extra packaging!
@littlepcat: This is correct.
It goes by ABNs. If you have 2 ABNs from PBIs, then yes you can claim both $15,900.
The only situation I can think where you can work 2 jobs concurrently is if you're part-timer of say 2 PBIs. If you're a full-timer 9-5pm-ers, the situation should be impossible unless you don't sleep and work AM at one PBI and PM at another PBI (burning the midnight oil).
It will increase your ATIs as if you're earning at top tax bracket when in reality you are not. One thing that LittlePCat didn't mention, is the usual casualty of this increased ATI is your Private Health Insurance rebate, which hits at 90k for singles. Then other benefits loss follow.
Also, the PBI FBT exemption works best the closer you are towards 48.5% tax bracket but if you are on 31.5%, then you could be at a disadvantage because of the elevated ATI.
The reality is organizations that offer this, wouldn't have paid you market rates in the first place as they are factoring this FBT exemption.
I'm no accountant, but this definitely sounds like something you would ask an accountant