It’s important to understand that outsourced salary packaging providers are essentially focused on specific elements of administration, such as overseeing the existence of an effective salary sacrifice agreement, tracking salary sacrifice deductions and benefit claims and providing information in a helpful form to payrolls.

Implementing appropriate policies remains the employer’s responsibility and employers bear the cost of FBT and the ultimate risk of anything going wrong.

It depends…

In simple terms, salary packaging an exempt electric vehicle (EV) will almost certainly result in a saving, compared to the employee leasing or financing a car directly. Salary packaging effectively enables a tax deduction for the lease costs, charging, repairs, maintenance and insurance costs. That’s likely to add up to a significant amount.

Deeming provisions for superannuation guarantee (SG) can create unbudgeted costs in relation to contractors. The recent Federal Court decision in FCT v Hatfield 2025 FCA 182 is another example of the vexed question of when the extended definition of employee in section 12(3) of the Superannuation Guarantee (Administration) Act 1992 applies.

The Fringe Benefits Tax (FBT) decision of the Federal Court on car parking in Toowoomba Regional Council v Commissioner of Taxation [2025] FCA 161 is great news for employers with businesses outside the CBD. Justice Logan also provides some pithy reminders that are relevant to tax interpretation and disputes more generally. Here’s a summary of both the FBT impact and broader considerations, and a look at what to do next if this affects you.

Two engineers, each of whom worked in a low-tax overseas location while continuing to own homes in Australia in which their respective families resided. One breaks Australian residency, the other does not. This summary outlines the key differences in the two decisions.

The rate of FBT is high, virtually equal to the cost of the benefit. This, combined with the various exemptions and reductions in FBT that are specific to Australia, have resulted in a thriving industry around salary packaging. But how well do employers and employees understand salary packaging?

Here are some of the most common misconceptions.

The FBT exemption for EVs can provide significant savings to employers and employees under salary packaging arrangements. But it’s important to understand some of the tricky areas such as what happens when home charging equipment is provided, when the ATO’s home charging electricity rate can be used and the transitional exemption for PHEVs from 1 April 2025.

The ATO has shared some of the most common errors made by employers. With Payday Super on the horizon, it’s important for employers to ensure risk areas are addressed, to avoid penalties and significant costs.

Employee share schemes can add enormous value to remuneration packages and be highly effective at aligning company and individual objectives. Here are some important considerations for employers considering introducing a new employee share scheme.

Are you looking to reduce your FBT costs and maximise your savings? Check out this article sharing practical tips drawn from experience with the largest employers, to help manage the expense of FBT. Get the valuable insights, from leveraging exemptions to utilising data analytics.