ali Posted July 6, 2023 Share Posted July 6, 2023 On 04/07/2023 at 14:09, InnerVoice said: When you salary sacrifice you don't get any money back - at least I never have. The sacrificed amount is directed towards superannuation contributions, motor vehicles, laptops etc, depending on what your employer offers. It reduces an employee's taxable income and there's a point where you can effectively 'break even' by ending up with the same net pay, whilst having made a contribution towards one of the aforementioned. It's a nice arrangement because you never miss the money, but for most people the end result is not much different than claiming legitimate expenses at the end of the financial year and receiving a tax refund. You also have to pay a small fee every month to the company that handles the sacrificing. I use Remserv, who charge the princely sum of $1.35/fortnight. Mine gets taken out of my wage pre-tax then put back into my bank 2 Quote Link to comment Share on other sites More sharing options...
ali Posted July 6, 2023 Share Posted July 6, 2023 On 05/07/2023 at 19:01, RubyMonday said: Only 10 days sick leave per year!! That’s terrible. With the NHS it’s 6 months full pay then 6 months half pay. I’ve only been off sick for a week in the last 6 years so it’s not that I need it but it’s nice to know it’s there. Is there any plans to increase that or are people just ok with it? Edit: So actually is it 10 days per year but if you don’t use them then they build? So I would have had 60 days minus the 4 shifts so still left with 56 days? In the public sector in WA you get 12 days - 10 are cumulative and 2 not. 1 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted July 6, 2023 Share Posted July 6, 2023 9 hours ago, ali said: Mine gets taken out of my wage pre-tax then put back into my bank Based on other comments this would appear to be a benefit unique to those working in the public health sector. It sounds like a great perk. I assume there's a limit, and you can't just sacrifice your whole salary down to $18,200 and live completely tax-free?! Quote Link to comment Share on other sites More sharing options...
Quoll Posted July 6, 2023 Share Posted July 6, 2023 7 minutes ago, InnerVoice said: Based on other comments this would appear to be a benefit unique to those working in the public health sector. It sounds like a great perk. I assume there's a limit, and you can't just sacrifice your whole salary down to $18,200 and live completely tax-free?! No, there's a limit as to how much you can sacrifice tax free. 1 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted July 6, 2023 Share Posted July 6, 2023 1 minute ago, Quoll said: No, there's a limit as to how much you can sacrifice tax free. How much is it then? Quote Link to comment Share on other sites More sharing options...
Ken Posted July 7, 2023 Share Posted July 7, 2023 6 hours ago, InnerVoice said: How much is it then? I've already posted that in this thread. It varies depending on employer but for public hospitals it's $9,010. 3 Quote Link to comment Share on other sites More sharing options...
Ken Posted July 8, 2023 Share Posted July 8, 2023 22 hours ago, Ken said: I've already posted that in this thread. It varies depending on employer but for public hospitals it's $9,010. On 07/07/2023 at 08:04, InnerVoice said: Based on other comments this would appear to be a benefit unique to those working in the public health sector. It sounds like a great perk. I assume there's a limit, and you can't just sacrifice your whole salary down to $18,200 and live completely tax-free?! It occurs to me that I should points that's the limit for living expenses and the like. There is no limit for salary sacrifice to Super other than annual and lifetime limits on Super. If you're coming up to retirement definitely worth piling as much as you can in to Super to pay 15% tax rather than your usual rate as you can take that 85% back as soon as you've retired. Not worth taking your salary right down to $18,200 though - you'll lose the low income offset and so be paying tax you didn't have to! 1 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted July 8, 2023 Share Posted July 8, 2023 4 hours ago, Ken said: It occurs to me that I should points that's the limit for living expenses and the like. There is no limit for salary sacrifice to Super other than annual and lifetime limits on Super. If you're coming up to retirement definitely worth piling as much as you can in to Super to pay 15% tax rather than your usual rate as you can take that 85% back as soon as you've retired. Not worth taking your salary right down to $18,200 though - you'll lose the low income offset and so be paying tax you didn't have to! That's what I've been doing for the last few years. In addition to 5% salary sacrifice which allows me to get a higher rate of employer contribution, I've been making post-tax contributions so I can decide if/when the money goes in. Always good to have a bit of a buffer just in case any unexpected expenses should pop up at the last minute! Quote Link to comment Share on other sites More sharing options...
Parley Posted July 8, 2023 Share Posted July 8, 2023 9 hours ago, Ken said: It occurs to me that I should points that's the limit for living expenses and the like. There is no limit for salary sacrifice to Super other than annual and lifetime limits on Super. If you're coming up to retirement definitely worth piling as much as you can in to Super to pay 15% tax rather than your usual rate as you can take that 85% back as soon as you've retired. Not worth taking your salary right down to $18,200 though - you'll lose the low income offset and so be paying tax you didn't have to! You can only salary sacrifice up to $27,500 per year can't you which includes the employer contribution? Or are you referring to making a non concessional contribution of $110000 from after tax income/money? Quote Link to comment Share on other sites More sharing options...
Ken Posted July 10, 2023 Share Posted July 10, 2023 On 08/07/2023 at 23:14, Parley said: You can only salary sacrifice up to $27,500 per year can't you which includes the employer contribution? Or are you referring to making a non concessional contribution of $110000 from after tax income/money? I was referring to the concessional cap as that is to my mind the only worth using. It depends upon how much your Super balance is and whether or not you used up your full annual contribution in previous years. If your Super balance is under $500K you can use up to 5 years of unused annual contributions. Consequently, while some people are limited to $27,500, others can put in six-figure sums (but not every year). 1 Quote Link to comment Share on other sites More sharing options...
Parley Posted July 11, 2023 Share Posted July 11, 2023 21 hours ago, Ken said: I was referring to the concessional cap as that is to my mind the only worth using. It depends upon how much your Super balance is and whether or not you used up your full annual contribution in previous years. If your Super balance is under $500K you can use up to 5 years of unused annual contributions. Consequently, while some people are limited to $27,500, others can put in six-figure sums (but not every year). There are lots of advantages to making non concessional contributions into Super as well, particularly for people in their 50s. building up a tax-free component within super has benefits when withdrawn or distributed as a death benefit. It is a good way to quickly get more money into Super quickly as you can put in potentially $110,000 in any year. Quote Link to comment Share on other sites More sharing options...
SWMOY04 Posted July 12, 2023 Share Posted July 12, 2023 On 04/07/2023 at 09:04, Marisawright said: Wow that sounds crazy. I know you can salary sacrifice for a mortgage, but the employer pays the money directly to the lender. If the money gets sacrificed and then gets paid to the employee, then the employee could go and spend it on anything, surely? I'm curious if @Ken has heard of this. yup, same here. The sacrifice tends to require proof (for example some places will only pay into the same account from which the rental/mortgage payments are made). Quote Link to comment Share on other sites More sharing options...
SWMOY04 Posted July 12, 2023 Share Posted July 12, 2023 Snr Mental health worker here (Grade 4 in VIC - I believe thats grade 3 in WA) Crisis, ED, Forensics etc. Cant speak for WA, but definitely a better work life balance (and income) in Aus than UK. 1 Quote Link to comment Share on other sites More sharing options...
ali Posted July 13, 2023 Share Posted July 13, 2023 On 12/07/2023 at 13:15, SWMOY04 said: Snr Mental health worker here (Grade 4 in VIC - I believe thats grade 3 in WA) Crisis, ED, Forensics etc. Cant speak for WA, but definitely a better work life balance (and income) in Aus than UK. SRN 3 is a clinical nurse specialist here in WA, Level 4 would be a Nurse Unit Manager (NUM), although I'm a nurse I'm in an HSU position which is L4 equivalent (Level 8 HSU) 1 Quote Link to comment Share on other sites More sharing options...
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