The PBI Employee Benefits Card.
Unlocking your tax-free spending.
If you’re in the PBI
sector, you’re
eligible for some tax-free savings.
As an employee of a public benevolent institution (PBI), you’re
in a great position. That’s because the Government allows you
to take part of your income as tax-free benefits. Which means you
can make the most of your hard-earned dollars.
By using an Employee Benefits Card to pay for everyday purchases
such as petrol, clothing, eating out or even the weekly groceries,
you can buy these items with your pre-tax income. And that can add
up to some substantial savings over time.
It’s your money. Why not make the most of it with an Employee
Benefits Card?
What is an Employee Benefits Card?
The PBI Employee Benefits Card (EBC™) is essentially
a MasterCard that has been specifically designed for use in the aged
care industry, public hospitals, charity organisations and for those
organisations who qualify as public benevolent institutions.
It is used to access money that you put into your EBC™ account through
salary sacrificing.
How does it work?
Firstly, you need to have a salary sacrifice
agreement with your employer. Then, once you’ve applied for
your Employee Benefits Card, your employer deposits the amount
you’ve agreed on into
your EBC™ account.
Then you can start using your EBC to pay for everyday
expenses. And because of the special tax rules for PBI employers, those
purchases are tax-free.
As with any MasterCard, you receive a monthly
statement so you can keep tabs on your spending. The other advantage
here is that having an EBC™ eliminates the need to hang onto receipts
and paperwork and apply for reimbursements. It’s a simpler
system.
Like any MasterCard, your EBC™ can be used anywhere in the world
to pay for everyday expenses, wherever MasterCard is accepted. However,
the EBC™ cannot be used to draw cash advances
or to establish direct debits.
How an EBC™ puts you ahead
The tax benefits of an EBC™ can be substantial, no matter what your
salary is.
Let’s look at someone who is earning
$25,000 a year. That would make their gross pay $961.54 fortnightly.
If they choose an Employee Benefit Card that
allows them to spend $617.30 fortnightly, here’s what happens: |
