One of the few American consultants shouted across our office today! Of course in Australia it’s a mobile phone and their use is ubiquitous. We love our mobiles! Close to 90% of us have a smart phone and we average 5 internet connected devices in our homes. It was not surprising then, that in the 2016 1st half people2people post, that by far the most popular benefit provided to employees is the mobile phone. Their prevalence as a benefit is also very different amongst industries. It is the top benefit in: Business and Professional Service (17%) Construction (26%) Healthcare (23%) Information Technology & Internet (34%) Manufacturing (33%) Mining and Resources (27%) Recruitment & Employment (32%) One of the reasons phones are provided as a benefit in Australia may be their exemption from FBT (Fringe Benefits Tax). According to the ATO: A fringe benefit is a benefit either you or an associate, such as your spouse or children, receive because of your employment. There are a few items which are exempt
- a portable electronic device
- an item of computer software
- an item of protective clothing
- a briefcase
- a tool of trade.
A smart mobile phone is classified as a portable electronic device. Of course, the ATO will examine whether the item is mainly used for work, to maintain this exemption. Benefits In lieu of salary have waned in popularity since the introduction of FBT, but if you are an employer looking to reward staff in ways other than cash, exempt fringe benefits are a great place to start.
Tablets and mobile phones are exempt, so these would be first items you would consider. Of course there are many more benefits offered.
You can share and compare your own salary package at www.salarysiite.com.au . For more information on the market generally, including salaries and benefits, you may also want to access the p2p post. We can arrange for one of our consultants to deliver one to you. Just contact people2people here: people2people.com.au/salarysiite