Jump to content

Salary Packaging? Anyone use it? Pay less tax working for charity?


wolvesaussie

Recommended Posts

Hi, I am at the second interview stage for a job, Typical Australia they dont advertise the salary but asked me my expectations when I applied. On the phone to arrange second interview he said he wanted to talk about those expectations. I am currently paid 75,000 with a payrise to 80,000 in the pipeline.

 

I put on the application I wanted 85,000 - 90,000 for the new job. He said they wouldnt go that high, they usually pay in the 70-75 region for the job. However he said because it was a registered charity I would double my tax free threshold, so the 75 could turn out to be worth more than 80,000.

 

Combined with salary packaging which he said would mean cheaper meals out, cheaper holidays etc, a cheap car etc.. the benefits would stack up to maybe match my expectation..

 

Just wondered if anyone is paid like this, does it really save you loads of money? Can 75,000 really turn into 85,000 ?

Link to comment
Share on other sites

I had a colleague whose wife worked as a carer/home nurse (or something along those lines) for a charity.

 

She could salary sacrifice against their mortgage so part of their payments were effectively tax free. She was allowed to take her car home at night but could not use it for any private mileage though.

 

There are other salary sacrifice methods for cars but the big catch may be (depends on the scheme) that if you change employer and they don't do something similar then you may have to pay to break the lease and lose the vehicle/have to buy it from the finance company.

 

We also have a social worker friend who has some deal (I know that's not very helpful) with her credit card that she gets discount when we go out for meals.

 

"Could" I think is the important word. Other than the tax allowance increase, the other perks depend on whether you use them or not.

 

If you do get an offer and the role interests you, I would ask to speak to one of their senior HR/compensation people to get a better idea of what exactly is available, how it works and whether you would use the items available or not.

Link to comment
Share on other sites

Thanks, yeah they said something about a 6,000 meal card, that would cost me 4,000 or something like that sounds all very complex, Getting a 30% discount on loan payments sounds appealing.

 

My missus does this through http://www.maxxia.com.au and effectively pays no tax. The money she salary sacrifices is loaded onto an ANZ Visa debit card every fortnight. It seems to work very well.

Link to comment
Share on other sites

Hi, I am at the second interview stage for a job, Typical Australia they dont advertise the salary but asked me my expectations when I applied. On the phone to arrange second interview he said he wanted to talk about those expectations. I am currently paid 75,000 with a payrise to 80,000 in the pipeline.

 

I put on the application I wanted 85,000 - 90,000 for the new job. He said they wouldnt go that high, they usually pay in the 70-75 region for the job. However he said because it was a registered charity I would double my tax free threshold, so the 75 could turn out to be worth more than 80,000.

 

Combined with salary packaging which he said would mean cheaper meals out, cheaper holidays etc, a cheap car etc.. the benefits would stack up to maybe match my expectation..

 

Just wondered if anyone is paid like this, does it really save you loads of money? Can 75,000 really turn into 85,000 ?

 

you can raise your tax free allowance to $34,000 by salary packaging. With a meals entertainment card I then raise it to $42k all legally.

 

I love that it pays to work here, rather than being penalised like I was in the UK

Link to comment
Share on other sites

Not personally but I worked in the public sector in WA where depending on exactly which dept. you worked it was available, it seems almost 'too good to be true' but it isn't.

 

I almost lost a team member as the $90k I was paying her was effectively worth $18k more for the Dept. of Health doing the same job at the same grade.

 

I had a salary packaged car - brand new every 2 years (up to $36k) and all servicing and FUEL. Cost me about $100 a month and came with a city centre parking space too. This was related to my grade though.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...