Not for Profit Salary Packaging Benefits

Why join a not-for-profit?

So you’ve taken the first step and started thinking about joining the not for profit industry. Aside from the wonderful benefits of having passion and purpose every day, let’s talk about the unique offering that only applies to the not for profit industry..

Salary Packaging!

The Australian government provides not for profit organisations with generous tax concessions to attract and retain a valuable workforce.

Organisations included in this generous entitlement are:

Public Benevolent Institutions
Health Promotion Charities
Public Hospitals

One of the concessions for these organisations is exemption from Fringe Benefits Tax up to the following capped thresholds;

Public Benevolent Institutions and Health Promotion Charities ($30,000 grossed up)
Public Hospitals and Ambulance Services ($17,000)

What does this mean to you when applying for a role in the not-for-profit industry?

It simply means, that a portion of your annual gross salary can be salary sacrificed to reduce your overall taxable amount and increase your take home pay.

Here are some examples of the potential tax saving structures:

Public Benevolent Institution

Public Hospital

$18,200

Annual Tax-Free Threshold

$18,200

$2,649

Meal Entertainment Cap

$2,649

$15,900

($30,000 Cap)

Annual Cap

$9,010

($17,000 Cap)

$36,749

Tax free Salary

$29,859

Public Benevolent Institution

Public Hospital

You can’t buy piece of mind

HECS and Australian Government Payments (e.g. CSA) can often feel like a barrier to Salary Packaging, we help you to understand, calculate and simplify these barriers. Just as you would go to a surgeon for an operation, you come to Eziway for Salary Packaging. We have comprehensive tools, forms, and calculators available which we use to provide you with piece of mind.

NFP Salaries vs Private Sector Salaries

At first glance, your $50,000 private sector salary may seem loaded with benefits, however it’s important you understand your gross salary equivalent when considering a role in the Not for Profit industry.

To calculate your private vs not for profit sector salary, use our calculator below

calculator