Salary packaging

[campbell]

I need some advice / help please.

I am able to Salary Package a whole lot of things through my work. Some are exempt FBT some full FBT.Can someone help with how much FBT is on items like Health Insurance, Travel, club memerships.

Thanks heaps guys

 

[Papa G]

I need some advice / help please.

I am able to Salary Package a whole lot of things through my work. Some are exempt FBT some full FBT.Can someone help with how much FBT is on items like Health Insurance, Travel, club memerships.

Thanks heaps guys

It's different in every state and also differs between jobs. For example in SA if you work for a charity, in many instances you can salary package $30k per year FBT exampt, which means you can chuck up to $30k in your mortgage, insurance bills etc. absolutely tax free. For doctors and nurses in public hospitals they can get up to $17k FBT exempt (tax free).

Without knowing what arrangement you are on it is impossible to know what you can and can't do. You should try speaking to someone like Mcmillan Shakespeare who are salary packaging speacialists and they will let you know what you can or can't do.

 

[campbell]

It's different in every state and also differs between jobs. For example in SA if you work for a charity, in many instances you can salary package $30k per year FBT exampt, which means you can chuck up to $30k in your mortgage, insurance bills etc. absolutely tax free. For doctors and nurses in public hospitals they can get up to $17k FBT exempt (tax free).

Without knowing what arrangement you are on it is impossible to know what you can and can't do. You should try speaking to someone like Mcmillan Shakespeare who are salary packaging speacialists and they will let you know what you can or can't do.

I am in the public hospital nurse cat.

So does that mean I can pay 15000 for my mortgage or overseas holiday, tax free

 

[Papa G]

I am in the public hospital nurse cat.

So does that mean I can pay 15000 for my mortgage or overseas holiday, tax free

I wouldn't be 100% about getting the O/S holiday FBT free - You'd have to check with your arrangements whether you could pay it directly towards your O/S holiday. Even if you can't the way around it, providing you have a redraw facility on your mortgage, is to get the $15k paid into your mortgage tax free, then redraw the tax free money to pay for your holiday.

 

[campbell]

I wouldn't be 100% about getting the O/S holiday FBT free - You'd have to check with your arrangements whether you could pay it directly towards your O/S holiday. Even if you can't the way around it, providing you have a redraw facility on your mortgage, is to get the $15k paid into your mortgage tax free, then redraw the tax free money to pay for your holiday.

Thanks.
Just spoke with the department about it all.

Can do the mortgage, but aren't allowed to redraw for 7 years. Which is a bitch.

The travel is ok, of work related in any way. I can get my Darwin trip to the footy , as its where my Uni is.A huge bonus.

Also can do utilities, club memberships. Up to 9800.00 pa. No FBT.

I am going to do the Super as well.

 

[kolchak]

What avenue will you take to salary package your morgage?

I've heard about this but I have trouble comprehending salary packaging a laptop let alone a morgage.

My concern would be it increasing your salary into a higher tax bracket...and then being taxed more, but if it doesn't then or if your allready in the highest tax bracket then it could be worth it...

 

[Papa G]

Thanks.
Can do the mortgage, but aren't allowed to redraw for 7 years. Which is a bitch.

I'm surprised at this because I am not sure how anyone would know about it. If you have an existing redraw facility on your home loan it is simply money going into your home loan same as say your after tax wage which you are allowed to draw on at any time. I may be wrong but I doubt the banks would care if you drew on that money.

 

[Papa G]

What avenue will you take to salary package your morgage?

I've heard about this but I have trouble comprehending salary packaging a laptop let alone a morgage.

My concern would be it increasing your salary into a higher tax bracket...and then being taxed more, but if it doesn't then or if your allready in the highest tax bracket then it could be worth it...

You have to work in an industry that offers FBT exemptions. These include charitible organisations and government hospitals. If you work in these industries, talk to your colleagues or payroll department and they will tell you how to do it - it is definately worth it, but as I said it is only available to a few select employers.

Actually the higher the your tax bracket - the better it is.

 

[campbell]

You have to work in an industry that offers FBT exemptions. These include charitible organisations and government hospitals. If you work in these industries, talk to your colleagues or payroll department and they will tell you how to do it - it is definately worth it, but as I said it is only available to a few select employers.

Actually the higher the your tax bracket - the better it is.

I can't fathom how my Bank would tell anyone if I redraw out of my loan account. I already have this facility available to me.I had thought of doping as you suggested, going for the whole 9000, and using it how I please, its just over 300 a fortnight out of the pay, which is very manageable, but now can't do this.bugger.

I don't think the Commonwealth departments get the same benefits as we at Qld health do, and only some areas of Qld Health get it.

 

[campbell]

What avenue will you take to salary package your morgage?

I've heard about this but I have trouble comprehending salary packaging a laptop let alone a morgage.

My concern would be it increasing your salary into a higher tax bracket...and then being taxed more, but if it doesn't then or if your allready in the highest tax bracket then it could be worth it...

They pay my bank the 9000. This amount is repaid by me to Q Health out of my pay over a year.This amount is deducted from my gross pay.Then I pay my tax on the balance. So I am minimising the tax that I pay.All legal.

 

[kolchak]

You have to work in an industry that offers FBT exemptions. These include charitible organisations and government hospitals. If you work in these industries, talk to your colleagues or payroll department and they will tell you how to do it - it is definately worth it, but as I said it is only available to a few select employers.

Actually the higher the your tax bracket - the better it is.

Okay, so these employees have a FBT exemption, very nice

Not that I understand how any of this works