fish.01

I agree that it is not a straight forward calculation. You must do at least 15000+ km to consider it.

As others have said some advantages of salary sacrifice cars you might want to consider include:

- Your monthly pretax payment also includes all fuel, maintenance, insurance etc so if you are in the 38% tax bracket you get your fuel, maintenance, insurance etc at a 38% discount.

- When you purchase the car off a dealer you get the GST free price (fleet price). ie you save 10%.....you then pay the 10% 3 years later on the lot smaller residual price.

- The cash you don't spend on the car can be invested elsewhere.

Detailed excel spreadsheet salary sacrifice calculators are often provided by lease companies/payroll staff.

freebo

Sydney.

POW148

If you do not do over 25,000Kms a year then it definetly is not worth doing. We salary sacrifice a vehicle and it is really good for us, we do over 40,000 kms per year so having all that fuel paid for pre tax $$$ and not paying GST on the fuel is a real saving.

I know people who will lend their car out to friends who may be taking a long trip so that they can get the mileage up. Seems so pointless just to have a new car sat on the drive.

Barney

obiwan

Agree, .. my mate is a accountant and his wife works with food preparation in one of the Qld Health Public hospitals, he made her sign up as soon as she was eligible...

they were not too keen on doing a car but they were eager to salary sacrifice their mortgage, its like she does not have to pay income tax on approx $9000 of her gross salary per year..

freebo

Hmmm, so its not just medically qualified healthcare staff who can sacrifice their mortgage, interesting. Does anyone know who does/doesn't qualify for the heathcare option?

Bonnie65

Not sure but my hubby works for QLD Transport as a customer service officer and he is able to salary package our electricity bills - it's the only thing he can package - not sure what the logic is for that

It's worth asking about if you work for the government in any capacity

obiwan

i think the rule is if you work in the hospitals itself, even if you are not a nurse or doctor but one of the support staff you can...but if you are an e.g. Accountant, IT person working in the corporate side of Qld Health you cannot do your mortgage (only your electricity)

ozzieeagle

Everyone that works in a Government hospital.... cleaners, porters, canteen ladies, anyone. Very difficult to get a job in an auxiillary position as people dont/wont leave. Not sure what happens if they are contractors though. They have to be on the permanent hospital staff (even if they are just permanent parttime)

freebo

Fair enough, I was wondering about an alternative career for the Mrs, however its my salary I'd like to sacrifice into property or rent so that doesn't work anyway!

Rod-Helen-Poppy

having had a quote for this on a car and only doing 15000kms, the quote said i could save over $300 per month

EvannTel

I think you're right. Over 15,000km it does become worth it but not greatly so.