What’s the difference between capped and above-the-cap benefits?
Salary Packaging
If you work in the public health or charity industry, you will notice that benefits may be ‘capped’ or ’above the cap’ – depending on the expense type and sector you work in.
Most above-the-cap benefits – such as novated leasing a vehicle, work-related devices, self-education and additional superannuation payments – have no limit and do not incur FBT.
Examples of “capped” benefits – that is, benefits that can only be packaged up to a certain amount – for health and charity employees include:
- mortgage and rent payments/living expenses (up to $9,010 for public not-for-profit health employees and $15,900 for charity employees)
- Meal Entertainment and venue hire (additional combined cap limit of $2,650 each FBT year).
Examples of "above the cap" benefits for health and charity employees include:
- novated leasing a vehicle
- work-related expenses (for example, laptops or self-education)
- additional superannuation payments.
Disclaimer: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Employers should independently consider whether a benefits program is appropriate for their organisation and seek advice where appropriate. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your organisation’s approval. Maxxia may receive commissions in connection with its services. Maxxia does not act as your agent or representative (or provide you with any advice or recommendations) in respect of the purchase of any vehicle.