Novated Leasing...

[Z_K]

..and salary packaging.

Yes, no, maybe?

I know there are some financial wizards eager to help a money-stupid moron out.

Out with it!!!!

 

[Borscht Mat]

..and salary packaging.

Yes, no, maybe?

I know there are some financial wizards eager to help a money-stupid moron out.

Out with it!!!!

The benefits of Salary packaging cars depends entirtely on the number of KM's you do.....The FBT is applied on a sliding scale with a higher % applying if you do few KM's (assumption being by the ARO that the more you do then the higher proportion must be for work related purposes). Last time I looked, if you did more than 25,000km's then salary packaging a car made sense. Less than that it is marginal and < 10,000 you would lose money.

There are some no brainers to package.

A Laptop is a good one. One laptop per year free from FBT. So why pay $2,000 of your after tax money for a laptop when you could pay $2,000 of your pre-tax money.

There are some other little things like airline club memberships etc which used to be of some value.

There is no value in packaging something like your mortgage, as the FBT will be exactly equal to the income tax you save. There si however sometimes a reason to package anyway which is access to some income tested benefits. Your actual taxable income is reduced, although you pay the same amount of tax. It doesn't help things like the super surcharge, or maintenance payments but does for some minor benefits.