Company car-pros and cons?
Aug 20th 2009, 2:56 am
#1
Forum Regular
Thread Starter
Joined: May 2005
Location: Ex Southampton, now on the Mornington Peninsula
Posts: 257
Company car-pros and cons?
Hi Guys and Girls,
Considering changing jobs and one I am interested in, (if I can get an interview, so unlikely!!
) has a company car included as its a rep position and there will be a lot of travelling. Does anyone know what the tax implications are? I had an idea that the sting you really hard here in Oz by saying its worth $$ on your salary even though you don't actually see the cash and I'm a bit concerned that I would be paying so much more tax as it would take me into the next band up that I could in fact be worse off than I am now, but if I do get an interview its not the sort of thing you want to ask!!
If anyone has one and they know I would be grateful for some info. Would I be better off using my own car for example and claiming milage instead? Just want to be prepared as the scouts used to say.
Thanks!
Considering changing jobs and one I am interested in, (if I can get an interview, so unlikely!!
) has a company car included as its a rep position and there will be a lot of travelling. Does anyone know what the tax implications are? I had an idea that the sting you really hard here in Oz by saying its worth $$ on your salary even though you don't actually see the cash and I'm a bit concerned that I would be paying so much more tax as it would take me into the next band up that I could in fact be worse off than I am now, but if I do get an interview its not the sort of thing you want to ask!!If anyone has one and they know I would be grateful for some info. Would I be better off using my own car for example and claiming milage instead? Just want to be prepared as the scouts used to say.
Thanks!
Aug 20th 2009, 3:17 am
#2
Retired
Joined: Apr 2004
Posts: 34,649
Re: Company car-pros and cons?
Employer pays Fringe Benefit Tax, not you.
Aug 20th 2009, 3:31 am
#3
Forum Regular
Thread Starter
Joined: May 2005
Location: Ex Southampton, now on the Mornington Peninsula
Posts: 257
Re: Company car-pros and cons?
Thanks for that!
Aug 20th 2009, 9:03 am
#4
Account Closed
Joined: Jun 2006
Posts: 0
Re: Company car-pros and cons?
Its pretty much an "all-win" situation.
Good luck with the interview
Pete
Good luck with the interview
Pete
Aug 20th 2009, 10:15 am
#5
Devil's Advocate
Joined: Feb 2008
Location: Mandurah
Posts: 2,269
Re: Company car-pros and cons?
Or.... if you can consider taking the cash in lieu and novate.
Its not for everyone and there are pros and cons but it works for me - effectively have car paid for by company AND I save tax!
Its not for everyone and there are pros and cons but it works for me - effectively have car paid for by company AND I save tax!
