Salary sacrificing????help please!
#1
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Joined: Nov 2003
Posts: 1,384
Salary sacrificing????help please!
I should probably get this by now but I dont, can anyone explain it to me and how is it a job perk?
Thanks,
Michaela
Thanks,
Michaela
#2
Forum Regular
Joined: Apr 2005
Posts: 62
Re: Salary sacrificing????help please!
complex question i will try my best. 1st thing to understand is it may not be. it depends on your circumstances so check with a tax agent. simply put income reduced at source (sacrificed) becomes non taxable. therefore you save the tax but lose the income. In return for this you get a benefit say a car. Now if the value to you of this car exceeds the value of the net loss of income you are in front. to work this out is not simple and depends on how many KM you do a year etc and other factors that i dont begin to understand. answer is to talk to your local hr and block guy for next to nothing who will point you in the right direction.
#3
Re: Salary sacrificing????help please!
Michaela,
Don't know much about it but this may be useful ?
http://www.ato.gov.au/businesses/con...&mfp=&st=&cy=1
Don't know much about it but this may be useful ?
http://www.ato.gov.au/businesses/con...&mfp=&st=&cy=1
#4
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Re: Salary sacrificing????help please!
That makes more sense, a car is the benefit for this job but its optional so will take some advice before accepting it,
Thanks Bix and Astonished
Thanks Bix and Astonished
#5
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Re: Salary sacrificing????help please!
Originally Posted by mcmercer
That makes more sense, a car is the benefit for this job but its optional so will take some advice before accepting it,
Thanks Bix and Astonished
Thanks Bix and Astonished
Does the car package include all running costs ?
#6
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Re: Salary sacrificing????help please!
Originally Posted by ABCDiamond
Have they given you the Salary figures with and without the car ?
Does the car package include all running costs ?
Does the car package include all running costs ?
Hi Erick,
No, and I didnt ask as I didnt really understand it!!!!!
I will find out though, do I need to know anything else?
Thanks,
Michaela
#7
Re: Salary sacrificing????help please!
Originally Posted by mcmercer
Hi Erick,
No, and I didnt ask as I didnt really understand it!!!!!
I will find out though, do I need to know anything else?
Thanks,
Michaela
No, and I didnt ask as I didnt really understand it!!!!!
I will find out though, do I need to know anything else?
Thanks,
Michaela
#8
Re: Salary sacrificing????help please!
Originally Posted by Bix
Would you like to know when mybirthday is
Cheers,
JTL
#9
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Re: Salary sacrificing????help please!
Originally Posted by JackTheLad
May 27th 1936
Cheers,
JTL
Cheers,
JTL
#10
Re: Salary sacrificing????help please!
Originally Posted by Merlot
a great birthday for split personality Gemini's
Good news eh ?
#11
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Re: Salary sacrificing????help please!
Originally Posted by Bix
Would you like to know when mybirthday is
#12
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Re: Salary sacrificing????help please!
Originally Posted by Bix
Would you like to know when mybirthday is
Don't mention Gemini's to me
#13
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Re: Salary sacrificing????help please!
Originally Posted by mcmercer
No, and I didnt ask as I didnt really understand it!!!!!
I will find out though, do I need to know anything else?
Thanks,
Michaela
I will find out though, do I need to know anything else?
Thanks,
Michaela
Fringe Benefit Tax gets involved for the employer to pay.
#14
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Joined: Aug 2003
Location: Dreamland AKA Brisbane which is a different country to the UK
Posts: 6,911
Re: Salary sacrificing????help please!
Originally Posted by ABCDiamond
Fringe Benefit Tax gets involved for the employer to pay.
#15
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Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: Salary sacrificing????help please!
The taxation of cars provided by employers in Australia is almost more complicated than the benefits in kind legislation in the UK. There seems to be an aura surrounding what are called novated leases ... these are tax advantageous where an employee:
1. Does a fair amount of personal driving - there are points in terms of your total (personal and business) annual kilometres where the Fringe Benefits Tax payable by the employer drops, a key figure being 25,000 kms per year.
2. Is paying 47% income tax.
3. Would otherwise be paying for a car out of after tax salary.
In essence the company pays a third party lessor such as Leaseplan, GE Capital, the Commonwealth Bank, etc for the provision to you of a car (including servicing, petrol, insurance, and the associated FBT), and reduces your gross salary to reflect this. It should cost you less because the car is being paid for out of pretax dollars.
I was looking into this personally last week, and found a couple of useful websites:
http://www.gefleet.com.au/products/calculator.html
http://business.commbank.com.au/busi...CH2624,00.html
There is also a discussion thread on a Subaru website on this subject:
http://www.mrtrally.com.au/forums/to...07&whichpage=1
Not sure whether any of this helps ... hope it does!
Best regards.
1. Does a fair amount of personal driving - there are points in terms of your total (personal and business) annual kilometres where the Fringe Benefits Tax payable by the employer drops, a key figure being 25,000 kms per year.
2. Is paying 47% income tax.
3. Would otherwise be paying for a car out of after tax salary.
In essence the company pays a third party lessor such as Leaseplan, GE Capital, the Commonwealth Bank, etc for the provision to you of a car (including servicing, petrol, insurance, and the associated FBT), and reduces your gross salary to reflect this. It should cost you less because the car is being paid for out of pretax dollars.
I was looking into this personally last week, and found a couple of useful websites:
http://www.gefleet.com.au/products/calculator.html
http://business.commbank.com.au/busi...CH2624,00.html
There is also a discussion thread on a Subaru website on this subject:
http://www.mrtrally.com.au/forums/to...07&whichpage=1
Not sure whether any of this helps ... hope it does!
Best regards.
Originally Posted by mcmercer
That makes more sense, a car is the benefit for this job but its optional so will take some advice before accepting it,
Thanks Bix and Astonished
Thanks Bix and Astonished