Rosscarbery

OH has just been offered a job that he really wants (2 telephone interviews and 1 face to face later!). The package discussion will take place at 7am in the morning so we need to be prepared. We've just realised that the "total salary" figure in Australia includes superannuation of 9%. We've also heard people say to beware medicare levy. The basic question is: what total percentage of salary do we have to deduct from the sum offered in order to see what the "real" salary is? We would also be grateful for any other hints or tips. We want full private medical insurance for the whole family which would be common with OH's type of job in the UK, and a car allowance would also be nice. Is this usual in Oz and are there any other common perks that people try and negoatiate? We anticipate that he will be taking a drop in salary of around 1/3 so we want to do the best deal possible. We're talking Sydney IT job if anyone has specific info. Thanks for any help.

Martha

Wendy

You should ask if it includes super or not, my hubby's super is on top of his wage.


Also what sort of visa is it?, because if it's temporary you should look into LAFHA too.

Rosscarbery

Thanks Wendy, that's helpful. We had got the impression that super was always included. We'll have PR so won't get the LAFHA.

worzel

Gym, health, car etc will be on top, if applicable but they vary company to company. But careful with super as the salary can be quoted before or after.

You can normally "salary sacrifice" the car - effectively lease it tax free. Much more complicated than that but I won't go into the details now.

Wendy

I always thought the same. It was a great suprise when he got his first wage slip and it was extra, although they only pay it on his contracted hours and not overtime which is a bummer cos he does lots

I'd ask for as much as you can, they can only say no can't they.

joho

If they say package then it normally includes the super. Company cars or car allowances arent as common here, but if his job included travelling then I would guess it would include a car allowance. What sort of job is it. Perhaps that would give us a clue.

Jo

Rosscarbery

He's a software architect Jo, he will be travelling between client sites so maybe he can use that as an argument for a car. I have heard of the whole "salary sacrifice" thing, it sounds complicated! Iinterestingly enough another job he was offered gave an initial consultation with a financial advisor as part of the deal to make sure you make the most of this.

Martha

Sandra

No I am not stalking you

I am in Payroll Software used to work for PeopleSoft / Oracle here in Sydney, the big american companies one paid health care the other didn't my current employer does not. Famil of four for a decent level of cover but not OTT is around $350 per month dependant on ages.

Car not included at either job even if I was going to customer sites. But ask for options that the company offer.

http://www.ato.gov.au/individuals/co....htm&page=6&H6

Medicare Levy - everyone pays this it is 1.5% extra on top of tax rate. It is Medicare Levy Surcharge you are interested in an extra 1% of your income taxed on the whole of income once you reach certain income earnings levels depending on dependants - see link above.

Example Earning 150K per annum you would be paying 1500 per annum extra tax to the government for basic medicare cover, but you could avoid this tax and pay $300 a month for medical insurance costing you $3600 a year but effectively it is costing you only 3600-1500 as you would be paying the tax if you didn't pay the $3600. Perfect sense eh!

You can ask for a breakdown of your package it is perfectly acceptable to request the exact numbers for

Salary
Superannuation (Pension) if it is only SGC or does the company pay more - do they only pay up to the max thresholds
Salary Sacrificeable (Sp?) items
Perks and benefits, eg in house canteen, gym memberships etc
Bonus schemes - get a good breakdown and ask what percentages have been paid out in previous years. No point in being told the bonus is up to 15% and the normal payout has only been 5 for the past 10 years.

Hope it all goes well - let us know

PM me if you want individual payroll information

Cheers

Three Legs

Tell them he's not even bothering to set his alarm clock in the morning unless they talk six figures + car + bonus + gym + clothing + moving allowance + super + a cuddly pet.

Ok, don't milk it with the pet.