MAR001

Hi All,

Good news from here!

I have managed to get an offer in a good multinational company, but they where upfront before starting the interview process about the salary and I just want to be sure what the car thing is all about..

- The 1st email was:
.."We have the base salary at $XXk (not great at all), plus a car allowance/vehicle plus super and a 10% bonus dependent on performance/company performance".

- And the offer includes:
..."$20,000 for a vehicle salary sacrifice arrangement"

I just want to be sure if whether this is a proper vehicle or a tax benefit. if so, what can the impact or benefit of that to to be considered as part of the package.

Thanks all..!!!

MAR

verystormy

It sounds like a fairly standard letter they send out. Salary sacrifice is a common thing here offered by companies and it effectivly lets you buy a car with payments made direct from your gross salary. So yes, it is a tax benefit.

However, as the letter states that you would receive a car allowance / vehicle then my guess is the way this would work is that you would buy your own car via salary sacrifice and they would give you an allowance for you using it. I am guessing that this is to try and get around some complex tax rules that apply to just giving people a company car and may, dependent on the allowance be a very good deal.

bingobob777

20,000 as a one off or per year?

Sounds like they have an arrangement with a novated lease provider and rather than you pay it then they will. However a one off 20k will get you a small family car at best.

MAR001

Thanks!

Honestly the model of the car doesn't matter, but (sorry my ignorance) does the offer (and the words "plus") mean:

- base salary + 20.000 worth in a car,

or:

- base salary - 20.000 worth in car = salary-20K (ish)

MAR

MAR001

The offer is as follows:
· $Xk base
· $X leave loading
· 10% bonus dependent on company and personal performance
· $20,000 for a vehicle salary sacrifice arrangement
· 9% superannuation
· Life and salary continuance insurance
· Free product and parking

bingobob777

Doens't really make it clear for me, I'd ask them to clarify the car. Also confirm if 9% super is in addition to base salary (sounds like it is). everything else is standard.

Turban Explorer

The 'free product' would swing it for me.

MAR001

Got it!

I received a call today from the HR director and the deal is the salary of Xk py and on top of that $20.000 per annum (less taxes) for a car lease.

They will put me in contact with a car dealer to discuss about the available models within the mentioned 20k-tax and so on..

So technically, the salary will worth X+20.000 py.

Is this a standard/good deal in Australia? what king of car may I expect with this deal?

bingobob777

My new Mazda Cx7 costs me 1200 a month for a fully maintained novated lease. 20k minus taxes takes you to about that. It cost 32,990 new when I got it.