Yvonne · 3 days ago
Just a query....I like the scenario that you posted Kerry...If the yacht was indeed $11K, could Louisa purchase it from her bucket IF, as stated, Jeder is a not for profit and therefore can offer salary sacrificing for the value of $16 050( I think this is the correct amount ??) but it does need to be clear in the start of ones work and needs to be black and white, not grey!! There are black and white considerations re this...FBT etc...

Kerry H
Kerry H · 3 days ago
You can request up to around $16K as wages through salary sacrifice. You cannot be paid this directly, however. Jeder can request a community sector banking mastercard card for you for this. There are specifications on what this can be spent on. 'Everyday items' Yachts do not seem to be on the list...here is more info https://www.google.com.au/url?sa=t&source=web&rct=j&url=https://www.communitysectorbanking.com.au/wp-content/uploads/2017/04/Salary-packaging-with-us.pdf&ved=2ahUKEwiGsMLJtuTcAhUQdt4KHTOJClQQFjABegQIBxAB&usg=AOvVaw1avAMKM12pSNo76-Mcj41l

Yvonne
Yvonne · 2 days ago
can the salary sacrifice be paid against the staff members own Mastercard??

Kerry H
Kerry H · a day ago
technically yes, and you need to be able to prove that it has only been used for 'everyday expenses' (sorry, still no yacht). the community sector card is easier for the org as it already meets ATO requirements.

Yvonne
Yvonne · 19 hours ago
Is there is definition of very day expenses ??Yes, no yacht!!!

Kerry H
Kerry H · 19 hours ago
It is a little unclear:
Rent or mortgage repayments
Credit card and personal loan payments
Expenses via a Salary Packaging and Employee Benefits Card (these cards can only be used in the ways listed here).
Household utility costs such as gas, electricity and water
Car expenses including petrol and registration
Health insurance premiums'
School fees, child care fees
And much more! (this is the unclear part!)
It is quite clear on how it cannot be used:
must not be used for BPay, Direct Debit, gambling, firearms, adult entertainment, cash advances, or at the post office.
You'll need to spend all of the money on your card prior to the 31st of March to ensure you make the best of the Cap benefit available to you this FBT year.

Sara
Sara · 19 hours ago
I like the idea of the community sector card for FBT, this would assist everyone and take the strain off finance as to what is acceptable etc- great idea @kerry63

Kerry H
Kerry H · 19 hours ago
yep: The community sector banking card has had a private ruling from the ATO. :thumbsup:

Yvonne
Yvonne · 19 hours ago
I was just checking re the above, and yes not much has changed in regards to NTB in the last few years...(not from what I can see)....yes, non tax benefits payment can be made directly to a staff members credit card-that's what I was doing for a number of years, when I salary sacrificed..it makes it easier than to get another credit card...

Kerry H
Kerry H · 18 hours ago
If you use your own credit card, you are meant to provide evidence on what payments have been for-I remember having to take in a pile of receipts each quarter which was then kept on file with the org. I have been using the community sector card for about a year and it is very easy, and now that Jeder is set up with them, adding new cardholders is also easy.

Yvonne
Yvonne · 18 hours ago
I also was permitted to use my own credit card and once a year (or when requested) i provided a copy of my credit card statement- no receipts or anything like that ...I worked for a very large NFP however

Sara
Sara · 18 hours ago
Kerry just to clarify so you are saying paying the balance of someone's personal credit card is not an allowable expense, unless they provide the receipts for the purchases made using that credit - or is this just for FBT payments?

Yvonne
Yvonne · 18 hours ago
I think it has to be regular payments on a staff members CC, who has been approved salary sacrifice. I believe that a copy of the staff members CC payment would suffice as proof...

Kerry H
Kerry H · 18 hours ago
The payment needs to go directly to the card and it must always be in debt. You need evidence of payments for everyday expenses to the value that you has been salary sacrificed. If audited it is the org and not the individual who needs to provide the evidence. This may be why most financial institutions now offer a specific salary sacrifice card. It will not allow purchases that are not compliant, therefore a safe options for orgs.

Yvonne
Yvonne · 18 hours ago
Yes, it was always in deficit(only just) but I paid all matter so things on the card....groceries, household items, insurances, water and gas rates, etc etc etc

This was discussed in the $ Jedi and we think it is a good idea for Jeder to use Community Sector Banking as the platform for Salary Sacrifice. A proposal is open for this atm and any dicussion can happen here in this thread.

I, and possibly like a few other people have one or two credit cards that I have to manage and remember PASSWORDS(eekkk) I would prefer if we could keep it to our credit cards, as I did when I salary sacrifced