1.1.S.05 Salary sacrificing (CCB)
Salary sacrificing is an arrangement between an employer and an employee where the employee agrees to forgo part of their future entitlement to salary or wages in return for a benefit of a similar value, for example the provision of child care.
Individual employers may allow employees to salary sacrifice the cost of child care services. The employer may be liable to pay FBT on the reportable fringe benefits provided. This is an area of legislation administered by the ATO.
Policy reference: FA Guide 2.6.1 CCB Eligibility Criteria for Individuals