Government bending us over

[lush]

mmmm think I need to work more on my salary packaging then.

[4.9 EF Futura]

Originally Posted by lush

How do you manage to do that? :

Earn less than $115 taxable on average per week i assume??

[XRchic]

Originally Posted by lush

mmmm think I need to work more on my salary packaging then.

Salary packaging ROCKS!!!!

[lush]

Yeah it does, but I think I could work on mine as I dont really utilise it enough I think!

Might ahve a chat to the accountant when I do my tax about it

[4.9 EF Futura]

Originally Posted by XRchic

Salary packaging ROCKS!!!!

We are given the option of packaging cars and laptops here... but ive never looked into it. Isnt there a catch where if you dont do enough KMs on the vehicle, you're up for an FBT charge?

Oh... that and the fact i'd probably take home $5/week if i packaged a car lol.

[lush]

Lol, I could end up the same! I should probably look into salary packaging a car though, I generally do about 800ks a week so would possibly make it worth it?

I've heard the same thing regarding the high ks etc.

[XRchic]

Originally Posted by 4.9 EF Futura

We are given the option of packaging cars and laptops here... but ive never looked into it. Isnt there a catch where if you dont do enough KMs on the vehicle, you're up for an FBT charge?

Oh... that and the fact i'd probably take home $5/week if i packaged a car lol.

Salary packaging a car is a brilliant idea, but only under certain circumstances. If you buy the car in March or early April and IF you plan on doing A LOT of KM in the FBT year, then yes, it is a really good thing.

The FBT year is 1st April to 31st March. Within that year, the FBT you pay at reconcilliation time (ie 31st March) is dependent on how many kms you do in that year in the car.. its on a sliding scale. It only becomes low enough to be a decent amount at around 50 000kms in the year (from memory, I havent looked at the scale for ages). If you do much less than that, you will have to pay more FBT than you will save on income tax.

But if you do more than 50 000km (say) a year between April and March the following year, and you are on a fairly high marginal income tax rate, then yeah, you can save a lot of money. Salary packaging a car usually includes the cost of all costs associated with the car too, so that includes fuel, insurance, rego, tyres, servicing etc, etc...

The best things to salary package for the ordinary worker are often laptop computers, child care fees and superannuation because I am fairly sure they are all FBT exempt - that is, you just get the income tax benefits without having to pay any FBT.

If you work for a private sector employer, your salary packaging of a car MAY not include FBT if your employer is nice and decides to pay it for you. In that case, salary packaging a car is an excellent deal.

Apologies if some of these numbers are out, I dont work in the FBT area and I dont really know that much about it... others on here may know more than I do!

Cheers

Jac

[MightyXR6Turbo]

Laptops are FBT exempt. Most things under $1000 are.

Warning though, for those whinging about HECS (Yes, I have a degree and pay HECS, I don't even have a job with in the field I studied!), salary sacrificing is in more times than not, a baaaaaaaaaaaaaaaaaaad idea. As any reportable fringe benefits get added into your HECS repayment income.

Just for a laugh GCFordChic, go find out how much it costs to attend Uni in a Non-Commonwealth supported place, then smile at the fact that you can actually get an affordable education through HECS.

Higher Education shouldn't be free, you do not have to do Higher Education! No one has to, schooling is enough to get along in life with out a problem. If you want a free education, join the Armed Forces, do an Apprenticeship or whatever.

If you want to do Higher Education, you pay for it.

[lush]

Thanks Jac! Thats been helpful, I may look at our policy further and think about it next year. (Im in a private company)

[4.9 EF Futura]

Thanks for the response Jac.

Public sector employer, living about 10 minutes away from work and being on the "commoner" 30% marginal rate suggests i'm prob not ready for a packaged car... seems silly to come up with excused to drive interstate... "spending a dollar to save 50c" kind of thing...

Have been thinking about a laptop, might have a yarn with HR next time im in sydney...

[XRchic]

Originally Posted by MightyXR6Turbo

Laptops are FBT exempt. Most things under $1000 are.

Warning though, for those whinging about HECS (Yes, I have a degree and pay HECS, I don't even have a job with in the field I studied!), salary sacrificing is in more times than not, a baaaaaaaaaaaaaaaaaaad idea. As any reportable fringe benefits get added into your HECS repayment income.

Just for a laugh GCFordChic, go find out how much it costs to attend Uni in a Non-Commonwealth supported place, then smile at the fact that you can actually get an affordable education through HECS.

Higher Education shouldn't be free, you do not have to do Higher Education! No one has to, schooling is enough to get along in life with out a problem. If you want a free education, join the Armed Forces, do an Apprenticeship or whatever.

If you want to do Higher Education, you pay for it.

I wouldnt salary sacrifice a car on a fairly low income, with HECS, so yes, Chris, thats about right. If you are on a very high income, in the top income tax bracket, then yes it might be ok. Most people I know who salary sacrifice cars do so when they have paid their HECS completely.

Other things are fine to salary package on HECS, if they are FBT exempt.

Re costs of higher education, you might want to look up the uni fees for Bond University - a private uni. Even then I would imagine that its subsidised, much like private schools.

I think the average student at uni costs something in the hundreds of thousands per year to educate and thats not high materials usages students like science or medicine! Even full fee paying students from overseas dont pay the real costs...

And yes, I also pay HECS. I have 3 degrees to pay for, plus the Financial Supplement Loan debt that I got from Austudy to the tune of $7000 a year while I was a single parent trying to get through a 5 year law degree after the kids' Dad took off and didnt pay child support. HECS and the SFSS in total add over 10% to my marginal tax rate... my choice so I wear it.

I know that for sure if I had not done my studies, I would be a single parent right now earning a very low wage and certainly wouldnt be in the position to send my kids to private school, pay private health insurance for our family or pay off a mortgage!

Edit: Bond Uni Fees: http://www.bond.edu.au/admin/fees/Bo...ule%202006.pdf

Bachelor of Laws: $91 360
Medicine: $233 100
Humanities and Social Sciences degrees: $68 520

Its $2855 per topic for those.

They have to be paid up front.

If you want to go there and study, it is up to $2700 per semester to live there, not including food.

[GCFordChic]

Originally Posted by MightyXR6Turbo

Just for a laugh GCFordChic, go find out how much it costs to attend Uni in a Non-Commonwealth supported place, then smile at the fact that you can actually get an affordable education through HECS.

Higher Education shouldn't be free, you do not have to do Higher Education! No one has to, schooling is enough to get along in life with out a problem. If you want a free education, join the Armed Forces, do an Apprenticeship or whatever.

If you want to do Higher Education, you pay for it.

AGAIN with these wonderful suggestions...ppl smile and go 'silly complaining uni student' and avoid telling me things i already know. :sm_drool:

Just so you know, i was offered a half scholarship to Bond and if i had gone there I would have ended up having about the same amount to pay, but i preferred the Uni i go to now so i made a choice and am in about the same situation. My parents live round the corner from Bond so my living expenses per semester would have been $0 including food! But i moved out to be closer to uni and i have no idea what it costs me per semester..dont want to work it out!
If i wanted to continually copy my brother in everything i would have joined the Navy, plus the one job i really wanted to do in the Navy i am too short for, and my butt looks big in white, so thats that wonderful suggestion... as for an apprenticeship, hey if law was an apprenticeship i would, but it aint so i cant. Also, my fiancee is a carpenter so i know how great that is, but i couldnt stand being the only (or one of very few) person on a jobsite without a Y chromosome.

You said if i want a higher education, i should pay for it. Well if i wanted to be a dole bludger/ welfare cheat YOU would pay for it. :

I have had enough of the assumptions, I am well informed about my career options, that i will have to pay for my degree and that it aint changing.

Now if someone wants to comment further on MY REAL WHINGE about the jobsearcher system funded by taxpayers.. in my opinion, it is not adequate for someone at uni, even though the majority of uni students have to work. I am not whinging about paying tax, but its use.

[XRchic]

Originally Posted by GCFordChic

Now if someone wants to comment further on MY REAL WHINGE about the jobsearcher system funded by taxpayers.. in my opinion, it is not adequate for someone at uni, even though the majority of uni students have to work. I am not whinging about paying tax, but its use.

Ive never heard about a jobsearcher system. I just did it like everyone else and just kept applying until I got a job. I dont know about other states but it is friggin hard to get a job with a law degree in Adelaide!

I had to work with two kids, while at uni as well as getting that stupid Austudy loan.

Its all about sacrifice in the short term to get a gain in the long term. I dont think that anything worthwhile getting is ever easy or free. Sometimes we would like it easier than it is (I sure did!) but at the end of the day its the same for everyone... not perfect but we just live with as best we can.

There is no doubt, studying and working is HARD and sometimes it is hard to see it being worth it in the long term! I know, I nearly dropped out quite a few times!

[Outbackjack]

Dont forget, with SALSAC cars that when you buy the car you dont pay GST and you get the fleet discount (the amount of fleet discount depends on the manufacturer, ford has one of the most generous discounts) This meant for me that a 60K XR8 (retail) actually is leased for the capital cost of 49k, on the road. I have nominated my klms to be 15K a year. The anual lease before tax is 27K. Hope this helps.

[MoreHPformyXR6]

Originally Posted by Bluefreak

The fuel excise is only 38c/L(fixed) so there, I just saved you $20.60 a fortnight...

But the collect GST so if we say its $1.40 per lite at the pump (14c is GST) 38c excess 14c GST = 52c per lite for the Govt.