| Community organisations and tax free wages |
| Friday, 08 December 2006 | |
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Many public benevolent institutions (PBI) remain unaware of the significant opportunities to use generous FBT exemptions available to them. Understanding if PBIs are able to access these benefits may result in employees being able to access up to $16,000 tax free.
David Sim, GiffardSim Accountants principal advisor to community based organisations, said that many community based organisations are unaware of the fact that FBT exemptions exist when an organisation is considered a public benevolent institution. "Benefits associated with being recognised as a PBI are significant and management of community based organisations that employ people should be reviewing their organisation's status".
PBIs are granted FBT exemptions to ensure they are able to compete with private enterprise when trying to recruit and retain their workforce. In a time of low unemployment accessing these benefits becomes critical.
Mr Sim said that community based organisations wishing to seek advice about their PBI status should contact GiffardSim Accountants to examine costs associated with the PBI status review, application and process, as well as reviewing salary packaging opportunities for employees.
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