Salary Sacrifice???
#1
Forum Regular
Thread Starter
Joined: Jan 2007
Posts: 211
Salary Sacrifice???
Hi everyone
My GF has been offered a job in queensland on 71k with a salary sacrifice of 17k per year.
Can anyone tell me what the take home pay would be per fortnight? Also, what is salary sacrifice?
Any help wold be greatly appreciated as this offer is less than the original one so we have the abacuses out to see how good or bad this is?
We are looking to move to the gold coast on a 457.
Cheers, great site.
Sean & Rach
My GF has been offered a job in queensland on 71k with a salary sacrifice of 17k per year.
Can anyone tell me what the take home pay would be per fortnight? Also, what is salary sacrifice?
Any help wold be greatly appreciated as this offer is less than the original one so we have the abacuses out to see how good or bad this is?
We are looking to move to the gold coast on a 457.
Cheers, great site.
Sean & Rach
#2
Re: Salary Sacrifice???
The tax rates are here and there is a link to a calculator.
Salary sacrificing is a wonderful institution - basically you pay for something out of your salary before the income tax is calculated. It is always wise to get financial advice about sacrificing because there can sometimes be fringe benefits tax implications (like vehicles). I believe that Health departments have quite generous salary sacrificing options, as do charities. Superannuation is a popular sacrifice reason and well worth doing if you can afford it.
Salary sacrificing is a wonderful institution - basically you pay for something out of your salary before the income tax is calculated. It is always wise to get financial advice about sacrificing because there can sometimes be fringe benefits tax implications (like vehicles). I believe that Health departments have quite generous salary sacrificing options, as do charities. Superannuation is a popular sacrifice reason and well worth doing if you can afford it.
#3
Re: Salary Sacrifice???
https://www.epacsalarysolutions.com/Public/default.aspx
Have a look at this site and play around with the calculators. Basically at the end of the day it reduces the amount of tax you pay. So you could end up with an extra 3 or 4,000 in your hand.
Have a look at this site and play around with the calculators. Basically at the end of the day it reduces the amount of tax you pay. So you could end up with an extra 3 or 4,000 in your hand.
#4
#5
Forum Regular
Thread Starter
Joined: Jan 2007
Posts: 211
Re: Salary Sacrifice???
Thanks everyone I willplough through the tax calcs. I roughly worked out on the tax calc without taking into account the sacrifice that she will end up with 55k after tax.
She went to a group interview and was originally offfered 84k which ss why we have paused for thought and wondered how much the 13k difference would make.
Help is much appreciated as they want to us to accept and start the 457 asap.
Cheers
Sean
She went to a group interview and was originally offfered 84k which ss why we have paused for thought and wondered how much the 13k difference would make.
Help is much appreciated as they want to us to accept and start the 457 asap.
Cheers
Sean
#6
Re: Salary Sacrifice???
Sure is. But you can put in more than the basic rate and into another super fund if you like, through salary sacrificing. Having appreciated the value of a good super pot rather too late in life, I would recommend to anyone that they should put in more than the basic by sacrificing - towards the end of my real career I was sacrificing 50% of my salary into super and it has been the best decision of my life - if you dont wait until your 50s to do that though you will be even further ahead! If you just stick with the basic level, the chances are that you wont be having a retirement which will do all that you would hope to do in your old age!!!!
#7
Forum Regular
Joined: Dec 2007
Posts: 78
Re: Salary Sacrifice???
Thanks everyone I willplough through the tax calcs. I roughly worked out on the tax calc without taking into account the sacrifice that she will end up with 55k after tax.
She went to a group interview and was originally offfered 84k which ss why we have paused for thought and wondered how much the 13k difference would make.
Help is much appreciated as they want to us to accept and start the 457 asap.
Cheers
Sean
She went to a group interview and was originally offfered 84k which ss why we have paused for thought and wondered how much the 13k difference would make.
Help is much appreciated as they want to us to accept and start the 457 asap.
Cheers
Sean
Cheers
#8
Re: Salary Sacrifice???
It all depends on what your employer is prepared to let you salary sacrifice for. I work for a charity and I can salary sacrifice against anything - I just submit my credit card statements. Others are more restrictive and you can do it against car, superannuation or maybe mortgage or rent. It all depends on what the fringe benefits tax implications are.
#9
Re: Salary Sacrifice???
As a high school maths and IT teacher I can salary sacrifice (i.e buy prior to tax deduction) computer, laptop, associated consumables and with the new media courses photographic, audio and video equipment. It is very work specific and can be worth a lot so worth talking to others in the same game to find out what you're entitled to.
#10
Re: Salary Sacrifice???
My son is a secondary maths science teacher and he can buy things before tax is paid to assist him. He also salary sacrifices into his super and as he is not married and young its the best time to be doing it. Will make a lot of difference to his payout.
Laptops are provided to the teachers by the education department in Victoria.
Laptops are provided to the teachers by the education department in Victoria.
#11
BE Enthusiast
Joined: Jan 2006
Posts: 413
Re: Salary Sacrifice???
Sure is. But you can put in more than the basic rate and into another super fund if you like, through salary sacrificing. Having appreciated the value of a good super pot rather too late in life, I would recommend to anyone that they should put in more than the basic by sacrificing - towards the end of my real career I was sacrificing 50% of my salary into super and it has been the best decision of my life - if you dont wait until your 50s to do that though you will be even further ahead! If you just stick with the basic level, the chances are that you wont be having a retirement which will do all that you would hope to do in your old age!!!!
Leverage outside of super, 0% entry tax,0% commissions to financial planner.Tax free growth.Tax deduction for interest when used for investment.
Pay into super, 15% entry tax ,around 1-2% commission to F/P every year.15% tax on growth,(mostly offset by imputation).Tax free after 60,unless rules change again.
Take as wages then an average of 25% tax for average earners.
As a simple comparison look how much your house is worth (leverage ,gearing)compared to your super.A simple rule of thumb is for every 10 yrs you contribute @9% then you have around 18 months wages.A 15% contribution around 2 yrs wages.So say 30 yrs old now, so you have 3 periods of 10 yrs.You retire with anything between 3 yrs wages and 7 yrs wages.
The 3 yrs wages is arrived at by low growth on 9%,the 7 yrs wages highish growth on 15%.To keep it simple use todays dollars.You retire tomorrow at 60,you have paid in for 30yrs.You have anywhere between 180K and 420K as a super pot,taking average wages at 60K.A life expectancy of a further 20 yrs,doesn't look good does it.
The super is good as icing on the cake,it should never be the cake.
#13
BE Enthusiast
Joined: Jan 2006
Posts: 413
Re: Salary Sacrifice???
I was going to add that.If you can salary sacrifice to pay the mortgage then give the company a big kiss and a cuddle and sign the paper.That 2k before tax is only $1400 to take home,a huge difference(average wages no medicare levy etc).