Salary packaging gives rise to a number of taxation and similar issues, particularly in relation to fringe benefits taxes. With these issues, there arises both traps and opportunities. It is necessary for corporates to keep on top of issues and changes in relation to salary packaging, to ensure that both its own and its staff’s costs are minimized. This paper gives a high level overview of different issues that arise in salary packaging. In particular, it covers:
- taxation of car benefits
- major issues affecting salary packaging
- recent cases and rulings.