Federal Government announced changes to the concessional tax treatment of ‘in-house benefits’.

Late 2012 the Federal Government announced changes to the concessional tax treatment of ‘in-house benefits’. These changes meant that these benefits would no longer be made available from 1 April 2014 for customers with an existing in-house salary packaging arrangement that was set up before the announcement.

Some examples of employees who traditionally used in-house benefits were:

  1. Teachers, who salary packaged their children’s education fees when the child went to the same school that they were employed by;
  2. Employees of Councils who could pay a part of their Council Rates tax free and
  3. Employees of retail organisations who could make purchases of merchandise that their employer sold to the public.