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Did you know about this?

Did you know about this?

Old Sep 27th 2003, 9:42 pm
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Listed below is a link to a governemnt website, explaining something called salary sacrificing. It is a tax break that is seriously worth looking and and can drastically reduce your income tax. My husband has been offered this as part of his contract.
You can get a 30% reduction in your yearly tax bill!!!

http://www.ato.gov.au/businesses/con....htm&page=1#H1
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Old Sep 27th 2003, 10:50 pm
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Yes, it's a benefit. I have a similar benefit. My benefit is as follows:

I can salary sacrifce 5% of my income to be put into my Superannuation Guarantee scheme (similar to 401k in USA). The company will match 1 for 1 every dollar I put in. In addition the money is taken out of my gross income so I pay less income tax on it (15% instead of 47%). So it is almost always a benefit to take advantage of salary sacrifice.

Please consult with a tax consultant to find out how you can benefit. Usually the salary sacrifice is some sort of benefit to increase retirement earnings or the savings rate. The government gives this a preferential tax treatment so that in the future when the people do retire they are not entirely dependent on government funds for their retirement income.
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Old Sep 27th 2003, 11:09 pm
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Originally posted by amaslam
Yes, it's a benefit. I have a similar benefit. My benefit is as follows:

I can salary sacrifce 5% of my income to be put into my Superannuation Guarantee scheme (similar to 401k in USA). The company will match 1 for 1 every dollar I put in. In addition the money is taken out of my gross income so I pay less income tax on it (15% instead of 47%). So it is almost always a benefit to take advantage of salary sacrifice.

Please consult with a tax consultant to find out how you can benefit. Usually the salary sacrifice is some sort of benefit to increase retirement earnings or the savings rate. The government gives this a preferential tax treatment so that in the future when the people do retire they are not entirely dependent on government funds for their retirement income.

My husband was also told that you can nominate many other things too. Your mortggage payments for example. That way it is also tax free and purchases for things like cars etc.
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Old Sep 27th 2003, 11:39 pm
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Originally posted by podgypossum
My husband was also told that you can nominate many other things too. Your mortggage payments for example. That way it is also tax free and purchases for things like cars etc.
Definatley get tax advice. My work offers salary sacrificing for computers and the deals are not that great. I prefer to buy my own PC and claim it against tax in my return.

You can borrow to invest against the equity in your house but you would have to speak to an acountant and a financial adviser on whether this would be in your risk profile and whether you would have a tax reduction.
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Old Sep 28th 2003, 10:40 am
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The extent of salary sacrifice options varies with job type. Governement workers, especially teachers and healthcare workers are offered some generous salary sacrifice options (so that the tax savings can in some way compensate for their low salaries).
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Old Sep 28th 2003, 10:57 am
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Originally posted by Herman
The extent of salary sacrifice options varies with job type. Governement workers, especially teachers and healthcare workers are offered some generous salary sacrifice options (so that the tax savings can in some way compensate for their low salaries).
Yes Herman..my husband is a nurse..

This system looks very attractive with him being allowed up to 30% tax relief.
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