Donations made under salary sacrifice arrangements
13 December 2009
Donations to deductible gift recipients (DGRs) made under salary sacrifice arrangements do not result in an employer incurring an FBT liability from the 2008-09 FBT year.
No FBT applies where the salary sacrifice arrangement involves a donation to an organisation that is a DGR.
Employees who make donations under salary sacrifice arrangements are not entitled to claim an income tax deduction for the donation in their own tax return.