Eziway News

What do you need to do for the End of FBT Year?Back


On March 01, 2022
Article
The end of FBT year is here and we can tell that you're already stressed… It's an easier process than you think. Grab yourself a hot drink, sit back on the couch and we'll cruise you through what you need to do to be ready for the end of FBT year (EOFBTY).

 

  1. So what do I need to do to be EOFBTY ready?
  2. HELP! How do I get my balance to $0.00?!
  3. What is Salary Packaging and why do you have a new year for it?
  4. What is the FBT 'cap' and why is it important?
  5. Still, need help? 

Woman on bed sipping tea, relaxed.

So what do I need to do to be EOFBTY ready?

The FBT year ends on the 31st of March, which means that all Salary Packaging or Entertainment benefit claims must be received and processed before this date.

 

Most of our clients opt-in to use our all-in-one Salary Packaging and Meal Entertainment cards which take the hassle out of claims.

 

If you do hold an Eziway Salary Packaging or Meal Entertainment card, you need to try and get your card balance to $0.00 before April 1 or your Salary Packaging arrangement could be affected just like Bill's.

 

 

HELP! How do I get my balance to $0.00?!

If you're running out of ideas on how to spend your remaining balance on your card, here are some nifty little tricks to help you clear your card balances sooner.*
 

Salary Packaging Card:

  • Purchase discounted E-Vouchers through the Eziway App for groceries, major retail and petrol (see FAQ sheet attached for more information).
  • Purchase gift cards direct online from your favourite retailers including Coles, Woolworths, JB Hi-Fi and Myer.
  • Pay bills in advance including utilities, phone and internet.
  • Get ahead of the Christmas curve and buy presents today taking advantage of the many retail discounts on offer.

Entertainment Benefits Card:

  • Dine-in with Uber Eats.
  • Purchase vouchers direct from your favourite Hotel or Retreat websites.
  • Purchase vouchers direct from your favourite Restaurant or Café websites.

*If a payment works then it is compliant, so hop online and spend your balance. You must buy direct from a vendor or service provider. Aggregated booking sites do not work with the card.

 

Let's talk Salary Packaging!

If you're new to Salary Packaging, or maybe you're thinking about it - Fringe Benefits Tax (FBT) might be like talking in another language. So, before we get into what you need to do let's break up some common FAQs

 

 

What is Salary Packaging and why do you have a new year for it?

Salary Packaging is an ATO approved method of restructuring your salary by reducing the tax you pay and increasing your net take-home pay. If you work for an organisation that offers Salary Packaging, this arrangement needs to be compliant with the Fringe Benefits Tax Legislation. This type of tax is separate from income tax which is why it has its own year, starting on April 1 and concluding on March 31.
 

If you're interested in learning more about Salary Packaging check out our Help Centre. It's packed full of resources to help you discover your potential tax savings with Salary Packaging. Now let's get back to the FBT year…

 

 

What is the FBT 'cap' and why is it important?

The ATO decides which organisations are exempt from paying Fringe Benefits Tax, allowing you as an employee to pay for items using pre-tax dollars up to a certain amount or commonly referred to as a 'cap'.

If you work for a PBI (Public Benevolent Institution) most charities, disability service providers and aged care operators are classified as PBI’s. This is $15,900.00 net per FBT year. If you work for a Public Health organisation such as a hospital or health care provider, your cap is $9,010.00 net per FBT year. It's common to hear the phrase "salary packaging to the cap", this just means they are maximising the amount they save.
 

The FBT cap is an essential component of your Salary packaging arrangement because it doesn't carry over year on year. You have one year to package that amount and if you have any outstanding balance left on your Salary Packaging Cards, then that gets deducted from your cap the following year.

 

Let's continue Bill's story from our 'What is Salary Packaging Page':
 

 Graphic and text example, Bill and his salary packaging arrangement

 

So Bill packages to the cap ($15,900) and by March 31st he has $1,000 left on his Living Expenses Card. Once the clock hits midnight the FBT year has officially ended, which means in the new FBT year (2022-23) he's only allowed to package $15,900 as a maximum – given that he still has $1,000 left in his account he will ONLY be allocated $14,900 to ensure he doesn't exceed the ATO legislated cap.
 

Bill has lost out on potential tax savings because he didn't heed our warnings! But that's okay because you're here and you want to know how to not end up like Bill…

 

 

 

Still, need help? We're only one call away!

No matter the time of year, we are always here to help. At Eziway, we have dedicated Client Service Officers that look after your organisation, which eliminates those dreaded long wait times and ensures all enquiries are answered promptly and professionally…WITHIN SECONDS.
 

If you prefer the digital route, we have many options to get the information you need:

  • Use the MyEziwayAccount App to make any claims, check the status of those claims, check the balance of your cards, make amendments, update personal details and even send email enquiries straight to our CSOs.
  • Email admin@eziway.net.au and our fantastic team will reply to your email promptly.
  • Follow us on our socials to stay up to date with all the latest Eziway News.
  • View our other articles in the News and Features section of our webpage
  • Visit our Eziway Help Centre to get information specific to you. Login to your Eziway account and select the 'Help Centre' icon.

The Eziway Team

1800 932 394 | admin@eziway.net.au

 

This information is general and does not consider your circumstances. Whenever you are making decisions that affect your income and financial affairs, you should consider seeking independent financial advice. © Copyright 2022 Eziway Salary Packaging Pty Ltd

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