Employees in the health sector who are eligible for the Fringe Benefits Tax exemption cap are able salary package the widest variety of benefits. This is a way for staff within health services to be rewarded for the important services they provide.
The FBT consequences for employees participating in salary sacrificing will differ depending on eligibility or otherwise for the FBT exemption cap and whether you receive any non-salary sacrifice fringe benefits, as explained in the Queensland Health Salary Packaging Information Booklet and the Participation Agreement.
To be eligible for the FBT exemption cap all of your employment assignments across Queensland Health (i.e. the Department and HHSs) must be exclusively in and for the designated public hospital business areas.
You need to be aware that non-salary sacrifice fringe benefits have first priority in applying the FBT exemption cap. Non-salary sacrifice fringe benefits are those provided by the department or HHS outside of the salary sacrifice arrangements (e.g. includes private use of a work vehicle, accommodation assistance, living away from home allowances).
The FBT exemption cap is not an employee entitlement. It is a taxation concession for limited categories of employers under the requirements of the FBT legislation. Employees are potentially able to achieve a tax saving through paying for benefit items with pre-tax salary through the salary sacrifice arrangements.