While the amount that you salary packaged in the last financial year is not subject to income tax, it may show up on your income statement as a Reportable Fringe Benefits Amount (RFBA).
A RFBA figure represents the ‘value’ of the salary packaging payments made for the year, which runs from 1 April – 31 March. If the total taxable value of fringe benefits provided to you exceeds $2,000, it will appear on your income statement. Your RFBA needs to be declared when you lodge your tax return. While it isn’t taxed, it may be used by the ATO and other Government agencies for any income ‘tests’ – for example, HECS/FEE-HELP, Family Assistance or Child Care Subsidy.
To help you understand your ‘Reportable Fringe Benefits’ and interpret your 2023-2024 income statement, read our “Understanding your income statement” guide here.
Further information on Reportable Fringe Benefits can be found on the ATO website.