https://salpacaus.com.au/wp-content/themes/spa_v7_6/css/fonts/svg/ecommerce_dollar.svg

PBI Exempt Benefit

Instant Savings Calculator

Did you know that as an employee of a Public Benevolent Institution (PBI), you can be provided a certain limit of FBT free fringe benefits from your employer?

Instantly calculate the affect the PBI Benefit can bring to your take home pay after any of the possible exempt benefit items have been paid for, such as rent, mortgage, and many more.

The process is simple! Just provide a few details and calculate your savings, then submit your enquiry to us and we will take care of the rest!

I earn $ per annum.

I want to package Utilise full cap or specifiy amount $ towards

Your Potential Benefit is . . .

$0.00

Per week

$0.00

Per year

Your Weekly Savings Summary

The PBI Exempt Benefit will put more money in your pocket each pay cycle.
This is how much more you will take home each week after paying any of the PBI exempt benefit items listed above.

WITHOUT
Packaging

$0.00

WITH
Packaging

EXTRA $0.00

$0.00

Start Saving Money

Simply submit a few details below and one of our friendly staff will contact you. We will take care of the rest!

  •  

What is Salary Packaging?

Salary Packaging is a tax effective way to receive your salary as a combination of income & benefits that allows you to deduct some of your pre-tax income & use it to pay for a variety of benefits. By reducing your pre-tax income you can reduce the amount of income tax you pay & in turn increase the amount you take home each pay day.

What is a Public Benevolent Institution (PBI)?

A PBI is a non-profit organisation which includes charities, clubs, societies and associations. A Public Benevolent Institution (PBI) can provide a certain limit of FBT free fringe benefits to its employees.

Examples of a PBI:

  • Organisations that
  • Directly provide relief to people in need, such as:
    • some hospitals and hospices
    • some disability support services
    • some aged care services, or
    • providers of low rental or subsidised housing, for people in need
  • Directly engage others to provide relief to people in need, such as a charity that promotes benevolent relief by entering into contracts with service providers to deliver that relief in different areas, or
  • Provide relief within a relationship of collaboration, such as a charity that raises funds in order to channel these funds to specific programs that provide benevolent relief, through a collaborative arrangement with another organisation that delivers those programs.

What is the FBT Exemption threshold?

A PBI can provide fringe benefits to its employees free of FBT if the grossed-up taxable value of fringe benefits does not exceed $30,000 per employee. Grossing-up refers to increasing the taxable value of a benefit to reflect the gross salary of an employee would have to earn at the highest marginal tax rate, including the Medicare levy, if they had received a cash salary rather than the fringe benefit. The grossed-up taxable value of benefits provided in excess of this capping threshold will be subject to FBT at 47%.Accordingly, most PBIs ensure that they only provide benefits that utilise this threshold.

The two separate gross up rates are:

  • Type 1 – 2.0802
    This rate is used where the benefit provider is entitled to a FSR credit in respect to the provision of a benefit.
  • Type 2 – 1.8868
    This rate is used if the benefit provider is not entitled to claim GST credits.
Eligible items
Private school fees Credit Card
Child care fees (non employer owned) Car parking
Home mortgage Trauma/Life insurance premiums
Utilities Personal Loan Repayments
Home/Contents insurance Rent – own home
Aged and disabled care payments Private Travel
Club/Association Membership Subscriptions Salary Packaging Payment Card
Health Insurance Meal entertainment & venue hire

Learn more. Download our PBI Benefit Guides?

Fact Sheet

Learn more and see a real life example of how much you could save

Meal Entertainment & Venue Hire Fact Sheet

Learn more and see a real life example of how much you could save

* This calculator contains general information and does not necessarily take all of your personal circumstances into account. Salary Packaging Australia encourages you to seek professional, independent tax or financial advice and to consider whether this information is right for you before making a decision. The availability of any packaging benefit is subject to your employer’s approval and compliance with the Australian Income Tax Assessment Act (1997). The Australian Taxation Office can provide advice on compliance.