company cars
Jun 21st 2007, 10:05 pm
#1
Forum Regular
Thread Starter
Joined: May 2007
Location: Was Poole Dorset but now sunny Gold Coast
Posts: 90
company cars
Hi
Can anyone tell me what the tax implications are for company car drivers in Oz? I know here I opted out and took the cash alternative to avoid that nice Mr Brown!! but how do they do things there. Also do yu get taxed on your private milage/petrol allowa
nace?
Can anyone tell me what the tax implications are for company car drivers in Oz? I know here I opted out and took the cash alternative to avoid that nice Mr Brown!! but how do they do things there. Also do yu get taxed on your private milage/petrol allowa
nace?
Jun 22nd 2007, 1:48 pm
#2
Aussie lost in the UK
Joined: Jun 2007
Location: Terrigal, NSW Central Coast
Posts: 682
Re: company cars
Hiya,
the tax man does not hit you near as hard in Australia as in the UK. In my job the companies that I work for always provide me with a car - its pretty standard really for my industry.
I am an australian and in Aus I ALWAYS take the car - no question. It is sometimes actually a TAX BENEFIT TO have a company car (even if you are on a leaseback scheme)
for example, my last company took the lease fee out for my car BEFORE they calculated the tax - ie, say you are earning $10,000 per month (gross) and your car lease is $1000 a month. They will take the $1000 out of your GROSS pay - you therefore get your car payed for and only pay income tax on the remaining $9,000. Make sense!
the other common alternative is the novated lease - where you lease a car from a car lease company and it is registered and insured etc in your name (rather than being in your employers name). Say you are paying $300 a week for the car, in the novated system your employer would agree to take this from your GROSS income on a weekly basis, so similar to the above, reducing the income tax you pay and, under this scheme, YOU can own the car after the set lease period.
either way you look at it it works out well worth it!
My last company even payed for ALL my fuel - including my private fuel - so I basically had a car for free, with free fuel and it reduced the tax I was paying!
the tax man in australia sure is a friendly chap!!
I have been working in the UK for the past 3 years and NEVER take the car option here - I always take the cash alternative because the tax man hits you too hard otherwise!
My advice would be to ALWAYS take the car in Australia and NEVER take the car if you are working in the UK!!
the tax man does not hit you near as hard in Australia as in the UK. In my job the companies that I work for always provide me with a car - its pretty standard really for my industry.
I am an australian and in Aus I ALWAYS take the car - no question. It is sometimes actually a TAX BENEFIT TO have a company car (even if you are on a leaseback scheme)
for example, my last company took the lease fee out for my car BEFORE they calculated the tax - ie, say you are earning $10,000 per month (gross) and your car lease is $1000 a month. They will take the $1000 out of your GROSS pay - you therefore get your car payed for and only pay income tax on the remaining $9,000. Make sense!
the other common alternative is the novated lease - where you lease a car from a car lease company and it is registered and insured etc in your name (rather than being in your employers name). Say you are paying $300 a week for the car, in the novated system your employer would agree to take this from your GROSS income on a weekly basis, so similar to the above, reducing the income tax you pay and, under this scheme, YOU can own the car after the set lease period.
either way you look at it it works out well worth it!
My last company even payed for ALL my fuel - including my private fuel - so I basically had a car for free, with free fuel and it reduced the tax I was paying!
the tax man in australia sure is a friendly chap!!
I have been working in the UK for the past 3 years and NEVER take the car option here - I always take the cash alternative because the tax man hits you too hard otherwise!
My advice would be to ALWAYS take the car in Australia and NEVER take the car if you are working in the UK!!
Jun 22nd 2007, 2:46 pm
#3
Forum Regular
Thread Starter
Joined: May 2007
Location: Was Poole Dorset but now sunny Gold Coast
Posts: 90
Re: company cars
Wow, thanks Andy, I am a sales rep (pharmaceuticals) and get really hacked off with the Tax element on my car can't do the job without it. Looks like I will be better off than I tought when we move, even though the salaries are less.
Thanks for the advice
Ali
Thanks for the advice
Ali
Jun 22nd 2007, 2:57 pm
#4
Aussie lost in the UK
Joined: Jun 2007
Location: Terrigal, NSW Central Coast
Posts: 682
Re: company cars
Yeah, you will find that hte salaries are less in Australia but the cost of living is a lot less as well.
In the UK me and my girlfriend both earn decent money but I find it so frustrating that after tax, shopping, bills, mobile phone etc etc etc there really isn't that much left.
My winter gas bill in the UK (for 3 months) would be more than ALL of my household bills in Australia for a year (and I am including internet, phone, water etc etc etc).
On paper it will look like you are getting a lot less, but the cost of living will make up for it! the only time I think you'll find it expensive is if you live in the city - but then hey, all cities are expensive!)
Good luck with the move!
If you ahve any other questions then let me know!
In the UK me and my girlfriend both earn decent money but I find it so frustrating that after tax, shopping, bills, mobile phone etc etc etc there really isn't that much left.
My winter gas bill in the UK (for 3 months) would be more than ALL of my household bills in Australia for a year (and I am including internet, phone, water etc etc etc).
On paper it will look like you are getting a lot less, but the cost of living will make up for it! the only time I think you'll find it expensive is if you live in the city - but then hey, all cities are expensive!)
Good luck with the move!
If you ahve any other questions then let me know!
