FBT season has rolled around again, and after completing our annual reviews for clients, one thing is clearer than ever: outsourcing salary packaging is the most effective (and compliant) approach for non-profit orgs.
We strongly recommend engaging a specialist third-party salary sacrifice provider, rather than managing arrangements in-house.
Why outsource?
While internal management might feel do-able, it often increases risk, limits benefits, and adds unnecessary administrative strain. For non- profit organisations with FBT-exempt status, outsourcing offers meaningful benefits for both your organisation and your staff…
Benefits for your organisation
- ATO compliance assurance: Third-party providers specialise in salary packaging rules and ensure full compliance with ATO requirements
- Protection from FBT exposure: The provider takes responsibility for structuring and administering arrangements, so employers do not incur any FBT liability
- Reduced administrative burden: Processing claims, checking supporting documents, tracking caps, and communicating with staff are managed end-to-end by the provider, reducing the admin burden for your organisation
- Lower risk of data exposure: Staff documents and personal information are handled within secure, purpose-built systems (rather than through manual internal processes)
Benefits for your staff
- User-friendly online portal: Staff can easily submit, track, and manage their salary sacrifice transactions at any time
- Access to meal entertainment packaging: Providers offer simple and convenient ways for employees to utilise the $2,650 annual meal entertainment cap
- Full use of FBT exemptions: In-house arrangements often limit benefits to general expenses up to $15,900, while third-party providers typically offer more flexible options and clearer guidance on how to maximise entitlements
Which providers do we recommend?
Purpose has worked with several providers and we can confidently recommend the following:
- Access Pay – best suited for organisations with 20+ staff
- Eziway – also ideal for organisations with 20+ staff
- Go Salary – a great option for organisations with less than 20 staff
