Follow our news and updates section and let Southgate Salary Packaging Services
keep you informed about important salary packaging news and information.
Changes to Statutory Percentages
28 March 2012
The new FBT Year starting on 1 April 2012, brings updates to the statutory percentages
used to calculate the amount of Fringe Benefits Tax (FBT) payable on employer-provided
cars. This is consistent with the 2011-12 Federal Budget changes announced on 11th
May 2011 to introduce transitional rates over four years, after which time all salary
packaged cars will use a statutory rate of 20%, regardless of the distance travelled
(kilometres) per FBT year.
These changes will affect employees travelling 25,000 kilometres
or more per year - on any NEW Novated Lease arrangement or any Novated
Lease that was entered into after the initial changes
occurred on 11th May 2011. Southgate will be issuing an updated Payroll Advice to
all employers in coming days to allow for any necessary payroll changes.
The table below shows the updated statutory percentages:
Distance travelled during FBT year
|
|
Existing Lease*
|
From 1 April 2012
|
From 1 April 2013
|
From 1 April 2014
|
|
0 - 14,999 kms
|
26%
|
20%
|
20%
|
20%
|
|
15,000 - 24,999 kms
|
20%
|
20%
|
20%
|
20%
|
|
25,000 - 40,000 kms
|
11%
|
17%
|
20%
|
20%
|
|
More than 40,000 kms
|
7%
|
13%
|
17%
|
20%
|
*Existing Lease (Novated Lease agreement commenced PRIOR
to 11th May 2011)
Now recruiting
30 Jan 2012
To start the New Year and cater to our growing customer demand, Southgate Salary
Packaging Services is now on the lookout for some new members to join our team.
We are welcoming experienced, driven and honest people to register their interest
with us.
Please visit our careers page to find out more about
us and view the current positions we have available.
Welcome to our new website!
30 Jan 2012
After many months of hard work, we would like to officially welcome you to the new
online home of Southgate Salary Packaging Services. Our new-look site features many
improvements to the design, content and navigation – to
make information easier for you to find, view and interact with.
Some of our new features include:
Happy 25th Birthday Southgate Group!
4 Dec 2011
The Southgate Group is very excited to be celebrating our 25th year
in business.
The Southgate Group was established in 1986 as a consultancy and fleet management
service specialising in the Not for Profit sector. Over the past 25 years we have
expanded our range of services through liaison with our existing clients, to fulfil
other service areas that were poorly met.
We launched Southgate Salary Packaging Services in 2006 in responses to continued
demand, with a goal to become the ‘best provider’ in terms of customer
service, compliance and cost-to-benefit value for our clients.
We would like to take this opportunity to thank all our valued customers for their
loyalty and support over the past 25 years (especially those who have been with
us right from day one!). We look forward to enhancing the value of our relationship
with you as we continue to grow, whilst continually developing and improving our
services to you.
For more information on the other Southgate Group members that may be able to assist
your organisation, please visit the
Southgate Fleet Management and Southgate Financial Services websites.
Accommodation & Venue Hire Program
23 Sep 2011
Did you know that you may be eligible to salary package the accommodation on your
next family vacation or venue hire expenses tax-free?
As an employee of a Rebatable, Charity, or Public Health employer you are entitled
to salary package the ‘Accommodation & Venue Hire’ fringe benefit.
This benefit includes the cost of hiring venues and facilities for the provision
of entertainment and/or recreation completely tax-free
and exempt from FBT (for Charities and Public Health)
or utilise your FBT rebate concession as a Rebatable employer. Accommodation & Venue
Hire is uncapped, meaning you can package as much as you like in addition to your
existing FBT Concession Cap limit. This allows you to maximise the
overall tax effectiveness of your total salary packaging arrangement
without altering any existing fringe benefits salary packaged within your Concession
Cap.
To see the benefits of salary packaging and to find out more - visit
for employers or for employees.
Novated Lease – Federal Budget Changes
10 May 2011
The 2011-12 Federal Budget has been released, with substantial changes announced
for Novated Lease vehicles. The changes affect the statutory percentages
– which are used to calculate the amount of Fringe Benefits Tax (FBT) payable on
employer-provided cars. The new percentages will be phased in using transitional
rates over a period of four years, after which time all salary packaged cars will
use a statutory rate of 20%, regardless of the distance
travelled (kilometres) per FBT year.
Distance travelled during FBT year
|
|
From 11 May 2011 to 31 March 2012
|
From 1 April 2012
|
From 1 April 2013
|
From 1 April 2014
|
|
0 - 14,999 kms
|
20%
|
20%
|
20%
|
20%
|
|
15,000 - 24,999 kms
|
20%
|
20%
|
20%
|
20%
|
|
25,000 - 40,000 kms
|
14%
|
17%
|
20%
|
20%
|
|
More than 40,000 kms
|
10%
|
13%
|
17%
|
20%
|
When to apply NEW vs OLD statutory percentages:
The OLD statutory percentage will apply in the following circumstances:
- An existing Novated Lease agreement commenced PRIOR to 11th May 2011
The NEW statutory percentages will apply in the following circumstances:
- Any new Novated lease arrangement commenced on or after 11th May 2011;
- Where an employee with an existing Novated Lease arrangement (regardless of whether
the lease commenced before or after 11th May 2011) undertakes a renovation to a
new employer;
- Where an employee refinances their lease payout or residual, in which case the vehicle
is reported under its current statutory percentage for the remainder of that FBT
year and then the NEW statutory percentages are used for all following FBT years
(based on percentage applicable for each given year) until lease expiry;
Note: In accordance with anti-avoidance
legislation, an employee cannot refinance earlier than lease expiry to obtain a
lower statutory percentage. This has been specifically clarified by the ATO.
Southgate will be issuing a detailed letter to all employers over the next week,
to further explain the implications of these changes on existing and future novated
lease arrangements for their employees. It is important to realise that these changes
make a welcome amendment to the current FBT legislation; they are far less radical
than some of those which had been suggested and provide certainty going forward.
It is excellent news for employees who drive fewer than 25,000 kilometres annually
as the statutory percentage will drop from 26% to 20%. This increases
the savings for employees already packaging in this circumstance, whilst
other employees who had previously found it not be not worthwhile, should certainly
reconsider a novated lease. Employees should not forget that all lease payments
and running costs are completely income tax free and FBT free, meaning they continue
to make the same level of savings (their marginal tax
rate) on these associated costs. Those employees who drive greater than 25,000 kilometres
will still enjoy substantial tax savings and these savings will be larger than other
employees due to the higher running costs being salary sacrificed pre-tax.
See our Novated Lease section for more information.