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Salary packaging


Guest mackemsok

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Guest mackemsok

I am on a 457 visa working at WA University in Perth and have been offered the chance of salary packaging. I can get a laptop which I will need to keep in touch with family back home and also its possible to hire a car through it.

Is it a worthwhile perk or does it not work out much cheaper?

Any advice welcome

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Guest PommieLady
have been offered the chance of salary packaging.

 

Hi

 

Salary packaging is great, do it.

 

Don't do a lease car through it, I'm not sure about the laptop but look in to it first.

 

If you arrive before the end of the tax year get as much of your salary through it as you can, you can claim the whole years tax free allowance.

 

Check this website as it should give you a bit more of an idea.

 

SmartSalary

 

PM me if you've got any specific questions

 

:wubclub:

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Salary packaging is great if you are doing a straightforward package - I think actually the government took laptops off the list of things you could package in the last budget but I am happy to be wrong about that (stupid decision:nah:). Cars are appealing but they can be tricky because if you dont get the 25,000km or above then it isnt worth it tax wise because of the FBT regulations.

 

You may be able to sacrifice into other things more easily - like mortgages, health insurance, superannuation (although as a temporary resident that may not have much appeal), personal loans which would then still free up your cash to buy yourself a laptop. Best see a financial adviser though who can walk you through the potential pitfalls.

 

I sacrifice pretty much all of my income but I work for a charity and, like health care workers, we have a very generous provision (I also only work part time which helps!)

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With laptops you now have to show that you are using them for work purposes....where before it didn't matter. Because of this a lot of HR depts, including mine, no longer offer it to their employees as it isn't worth the hassle if the govt disputes it and monies have to be repaid.

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Guest Mike&Fiona

 

 

Don't do a lease car through it,

 

 

 

Care to expand? I have been offered a novated lease in my job offer, I am seriously considering it as I have a company car in my present job.

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Guest PommieLady
Care to expand? I have been offered a novated lease in my job offer, I am seriously considering it as I have a company car in my present job.

 

I had a car leased through health in the UK years ago (about 1995) it was very worth while, and my sister currently has one and she is very happy with hers.

 

I was talking about lease cars available via salary packaging. It can be made to sound good as it is processed as a fringe benefit tax (FBT) but my personal experience was that it was a very very expensive mistake. Unfortunately its not just about keeping your millage up. I also witnessed colleagues who had a leased car encouraging others to do the same and not telling them of the pitfalls as they get a commission for everyone they refer.

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Guest Wallace

We salary package as health care professionals and it is fantastic... a real good way of saving some money on tax paid!! Definitely worth doing so go for it.

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  • 1 year later...
Guest peacock

 

I had a car leased through health in the UK years ago (about 1995) it was very worth while, and my sister currently has one and she is very happy with hers.

 

I was talking about lease cars available via salary packaging. It can be made to sound good as it is processed as a fringe benefit tax (FBT) but my personal experience was that it was a very very expensive mistake. Unfortunately its not just about keeping your millage up. I also witnessed colleagues who had a leased car encouraging others to do the same and not telling them of the pitfalls as they get a commission for everyone they refer.

 

Normaly between $150-$200 a car, if you try and break the lease early the penaltys are huge, also if your lease is with Mcquarie you will have included on top of your loan $4000-5000 extra added, known as brokerage, plus your interest rate will be 5-6% higher than a personnel loan, so any tax saving is well and truly lost, thats the reason why these companys are happy to pay large spotters fees,

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With anything that involves salary sacrifice, ask if your company calculates your super and overtime based on the packaged amount or the after-sacrifice amount. You could open your payslip and find that it's significantly down if they do the latter; my novated lease costs me around $3000 pa more than I thought it would through lost earnings on overtime and super, which basically cancels out the tax benefit I had in getting it in the first place.

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Guest peacock
With anything that involves salary sacrifice, ask if your company calculates your super and overtime based on the packaged amount or the after-sacrifice amount. You could open your payslip and find that it's significantly down if they do the latter; my novated lease costs me around $3000 pa more than I thought it would through lost earnings on overtime and super, which basically cancels out the tax benefit I had in getting it in the first place.

 

 

I am suprised the unions still allow there menbers to enter these schemes , which in most cases when salary packaging a car is a rort.

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