Corporate Wellbeing - Facts and benefits

Work-related stress can be caused by various events. For example, a person might feel under pressure if the demands of their job (such as hours or responsibilities) are greater than they can comfortably manage. Other sources of work-related stress include conflict with co-workers or bosses, constant change, and threats to job security, such as potential redundancy.

• In Australia, the total cost of workers compensation claims for stress-related conditions is estimated at over $200 million every year.
• According to the National Health and Safety Commission, work-related stress accounts for the longest stretches of absenteeism.

Corporate health & wellbeing retreats are a tax benefit…

The following information is supplied as a general guide, however we encourage you to consult with your Chartered Accountants and Advisers in relation to the taxation of the cost of attending a "Health Retreat".

Tax Deductibility
Where an individual personally incurs the cost of attending the Health Retreat, the cost will not be tax deductible.
If an employer incurs the expense of an employee attending the Health Retreat or reimburses an expense incurred by an employee, the employer may be able to claim a deduction where the expense is incurred in providing a fringe benefit to the employee.

Fringe Benefits Tax
Where the employer pays for the cost of attending the Health Retreat for their employees that would normally be the provision of a fringe benefit.  However, an exemption from fringe benefits tax may be available in circumstances where the fringe benefit was provided in connection with certain activities, which include “work-related counselling” and “work-related preventative health care” (refer to Section 58M of the Fringe Benefits Tax Assessment Act).

The counselling may relate to any of the following matters:

• safety
• health
• fitness
• stress management
• personal relationships
• retirement problems
• drug or alcohol abuse
• rehabilitation or prevention of work-related trauma or other disease or injury
• first aid
• any similar matter

The preventative health care needs to be provided wholly or principally to prevent the employee suffering from work-related trauma.  The care must be provided by or on behalf of a legally qualified:

• medical practitioner
• nurse

This exemption may extend to the cost of attendance at the Health Retreat by accompanying spouse or children, associated travel costs, accommodation and food incurred in attending the Health Retreat.