Your employer is a Public or Private not-for-profit Hospital or a Public Benevolent Institution

Public Benevolent Institutions (PBIs) include public hospitals and other charities (non-hospitals).

Salary packaging involves sacrificing part of your gross salary to receive other non-cash employer benefits. Those benefits attract varying rates of FBT, and some benefits are even FBT exempt.

There is no PAYG tax payable on the amount sacrificed, which reduces your taxable income.

As an employee of a PBI - Public Hospital, you receive the first $9,095 of benefits completely free of taxes (no PAYG or FBT).

As an employee of a PBI - Charity (non-hospital), you receive the first $16,050 of benefits completely free of taxes (no PAYG or FBT).

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