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Thread: Employer paying for uni - questions.

  1. #1

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    Default Employer paying for uni - questions.

    Can someone help me please? I think I know the answer but want to double check.

    My employer has offered to pay for me to do uni. They have told me to have the bill sent to them directly. Great Fantastic!
    Then they went on to say that this cost becomes part of my taxable income, and I would therefore be paying the tax on this cost (30c in the $ or something like that).

    Does this mean it becomes part of a salary package and salary sacrifice? I am already using the full amount of SS i'm entitled to.

    Does anyone know how this works??
    The person I need to talk to at work about it isn't here today.. thought i'd try my luck here.

  2. #2

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    Default Re: Employer paying for uni - questions.

    I'm not an expert but I think this is related to fringe benefits tax, rather than salary sacrifice and yes it will form part of your total taxable income when it comes to doing your tax return it will need to be included.

    Hopefully someone will come in and explain it further, I'm still learning

  3. #3

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    Default Re: Employer paying for uni - questions.

    Thanks Jaycee.
    I've spoken to a couple of people and also rung the tax department.
    I'm still confused lol

    From what I can work out - I send them the bill, they pay it then add that amount to my current salary of which I will pay tax at the end of the year.

    What I can't work out is does this affects current salary sacrifice arrangements as I'm already sacrificing the most I can or is it something different again.

    I think I'm still better of doing it this way than paying for it myself... I don't know!
    Last edited by BrightSparkles; December 5th, 2013 at 02:30 PM.

  4. #4

    Join Date
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    Default Re: Employer paying for uni - questions.

    I don't think it's treated as salary sacrifice. SS and FBT (fringe benefits tax) are two different things, and as far as I'm aware, this is a FBT event.


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