The term ‘cap limits’ refers to the ATO-set amount of pre-tax money you can claim each FBT year (1 April to 31 March) without incurring fringe benefits tax.
If you work in the public health or charity industry, you can package certain items up to amounts of $9,010 and $15,900 each FBT year respectively. For any amounts packaged over these limits, FBT will be applied – meaning you’d pay more tax.
Depending on your employer, health and charity employees could also be eligible to package an additional $2,650 for Meal Entertainment expenses each FBT year.
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