Swan's mini budget sacfrices salary packaging

[Newshound]

The Federal Treasurer Wayne Swan has sacrificed ‘in-house benefits’ used in salary packaging for the sake of his budget surplus.

"The Government will remove the concessional fringe benefits tax (FBT) treatment for in‑house fringe benefits if they are accessed by way of a salary sacrifice arrangement. This measure will apply from 22 October 2012 for salary sacrifice arrangements entered into from its announcement on 22 October 2012, and from 1 April 2014 for salary sacrifice arrangements entered into prior to its announcement on 22 October 2012. This measure is estimated to have a gain to revenue of $445.0 million, and an increase in GST payments to the States and Territories of $85.0 million, over the forward estimates period."

[Tasman McManis]

There are not many concessional FBT benefits left and every recent budgetary announcement seems to bring another reduction in benefits. This change follows changes to motor vehicles, company cafes/meals, computers for business use and Living Away from Home Allowance. Employees in charities and government departments could well be next in losing their FBT threshold benefits which I think was recommended in the Henry Report.

Given the funding difficulties and costs with health insurance and child care you wonder if the governement has ever considered an expansion of concessional FBT benefits into these areas.

All this goes to say is that "Cash continues to be King"

[Moz]

Employees in charities and government departments could well be next in losing their FBT threshold benefits which I think was recommended in the Henry Report.

No doubt the Government had this in mind when they awarded each backbench MP pay increases totalling $49,640 in the last year!

As for Wayne Swan, his salary increased by $101,762. While he chips away at every little perk or benefit in the private sector. Talk about hypocrisy!