Instead of just complying with the fringe benefits tax legislation, why not use it to your advantage? Salary packaging can maximise take-home pay and attract talent.
Could salary packaging be a cost-effective way to attract and retain talent?
By combining cash salary with other benefits, organisations have greater flexibility to negotiate remuneration , but that’s just one of the advantages of salary packaging. Many people don’t know that the strategy can also be used to obtain tax benefits. As a whole, the fringe benefits tax (FBT) provides a legal framework that companies can use to manage costs and talent, building a strategic platform for recruitment and retention.
The first step to effective salary packaging is understanding how some simple FBT strategies can benefit businesses. Here are five of the most common myths that could be holding companies back from attaining these rewards.