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Old 06-11-2019, 07:22 PM   #1
Crazy Dazz
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Default Anybody salary sacrificed lately?

I haven't looked into this in detail for a few years.
My background was as a Tax Accountant, but haven't stayed completely current. Last update I recall, one of the governments wound up the taxable amount to the max, and basically made it useless for most people.

Since then, I've had a look at a few quote for people, and they were all absolute fleeces.

I'm wondering if anyone has actually done one where they properly crunched the numbers and arrived at a next saving?
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Old 06-11-2019, 08:16 PM   #2
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Default Re: Anybody salary sacrificed lately?

I salary sacrifice into my Superannuation
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Old 06-11-2019, 08:36 PM   #3
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Default Re: Anybody salary sacrificed lately?

I have been trying to justify a lease car for the past 4 years but cant see how it is actually beneficial.
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Old 06-11-2019, 10:14 PM   #4
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Default Re: Anybody salary sacrificed lately?

sacrifice my salary, right there is an issue
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Old 06-11-2019, 11:50 PM   #5
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Trevor 57 View Post
I salary sacrifice into my Superannuation

Agreed, only loan I've ever paid is for property, everything else is cash or not at all, super now takes half my pay, that way I can retire at 60 a happy man
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Old 07-11-2019, 05:18 AM   #6
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Polyal View Post
I have been trying to justify a lease car for the past 4 years but cant see how it is actually beneficial.
be very careful of novated leases
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Old 07-11-2019, 08:11 AM   #7
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Default Re: Anybody salary sacrificed lately?

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be very careful of novated leases
yeah I dont know how people do it, im on a good wage and just cant justify it.

You would have to be on 250k+ I would think.

Right now I get a "tool of trade car" for $15k that basically is unlimited use. Its not bad but I have to drive a hilux. Work claims its part of my TFR which is cheeky.

But new job offers a car separate to package, so Im happy with that!
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Old 07-11-2019, 09:35 AM   #8
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Default Re: Anybody salary sacrificed lately?

lots of restrictions too, messy if you want to sell the car early, or change jobs
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Old 07-11-2019, 09:53 AM   #9
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Crazy Dazz View Post
I haven't looked into this in detail for a few years.
My background was as a Tax Accountant, but haven't stayed completely current. Last update I recall, one of the governments wound up the taxable amount to the max, and basically made it useless for most people.

Since then, I've had a look at a few quote for people, and they were all absolute fleeces.

I'm wondering if anyone has actually done one where they properly crunched the numbers and arrived at a next saving?
I think for high milage there are changes to the residual value
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Old 07-11-2019, 11:29 AM   #10
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Polyal View Post
yeah I dont know how people do it, im on a good wage and just cant justify it.

You would have to be on 250k+ I would think.

Right now I get a "tool of trade car" for $15k that basically is unlimited use. Its not bad but I have to drive a hilux. Work claims its part of my TFR which is cheeky.

But new job offers a car separate to package, so Im happy with that!
always need to be aware of FBT when vehicle is provided, who pays the FBT and how much?
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Old 07-11-2019, 11:55 AM   #11
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Default Re: Anybody salary sacrificed lately?

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always need to be aware of FBT when vehicle is provided, who pays the FBT and how much?
aaaand im going to find the contract
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Old 07-11-2019, 12:18 PM   #12
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Default Re: Anybody salary sacrificed lately?

All the info here:
https://www.ato.gov.au/General/Fring...for-employees/
But if your a Nurse you can also salary package
https://www.maxxia.com.au/news/salar...salary-package

Novated lease - I've looked into that also, and couldnt see how it stacked up. I've had friends trying desperately to get their Kilometers up so not affected by FBT
But I believe hat has now changed
https://www.strattonfinance.com.au/n...-leasing-myths
I will be looking into this again for our next car
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Old 07-11-2019, 12:39 PM   #13
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Default Re: Anybody salary sacrificed lately?

It's definitely not for everyone, but it can work very well, especially people doing more than 30,000kms a year. (Due to accelerated depreciation, not FBT) The trick is to get a cheap enough car that will hold it's value.

If you use the ECM meaning the amount you would normally pay in FBT goes straight into your running costs, so it pretty much cancels out any FBT payable.

Also if you have kids, the amount sacrificed might be offset with a higher family tax benefit. It can pretty much offset the amount sacrificed anyway.
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Old 07-11-2019, 01:18 PM   #14
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Default Re: Anybody salary sacrificed lately?

I havent looked at it for a few years. As mentioned already in this post doing enough kms is important.
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Old 07-11-2019, 01:38 PM   #15
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Bevsta007 View Post
I've had friends trying desperately to get their Kilometers up so not affected by FBT
We looked at salary sacrifice for a car in the early naughties but it stuck in my craw that you pay but end up with nothing at the end (I'm old fashioned).

Anyhoo, my wife's boss took it on with a new BA, then a BF and finally a Rav4.

During that period he had no hope of getting the required kms so we used to swap cars and we'd take his on our road trips.

Win/win.

No FBT for him and a new car + free fuel for us to use.

(Also had the benefit of discovering just what a POS the Rav4 was...)
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Old 07-11-2019, 04:46 PM   #16
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Default Re: Anybody salary sacrificed lately?

When I had an issued company car pre-2000, the company paid the minimum 11% FBT (back then) so we didn't have to keep a log book
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Old 07-11-2019, 05:34 PM   #17
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Default Re: Anybody salary sacrificed lately?

FBT is the reason why 4x4 dual cab utes and non-FBT one tonne utes became fashionable
first as novated leases and then as company supplied "pool vehicles" that only ever do that
"incidental mileage" outside of work hours...even though driver regularly violate that stipulation.

Tax department is never going to have the resources needed to crack down or even check for that
kind of fraud, the best that they can do is nominate 10% FBT for all crew cab utes unless fully
substantiated by log books.
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Old 07-11-2019, 06:47 PM   #18
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Default Re: Anybody salary sacrificed lately?

I was in the company fleet leasing/management industry myself in the 1980s.

Later, when these lease deals started being advertised to the general public, if asked what I thought about them, I just said replace those words "Guaranteed Buy Back" with "Guaranteed TAKE BACK".

However, later again, when the salary sacrifice deals became the in thing, and I was working for an airline, one of my work associates, a well paid aircraft engineer, did the deals with a new Camry Sport every 3 years, including maintenance and fuel, and he claimed it worked well for him.

Me, I would be picking up the nearest barge pole to keep them away from me!

Cheers.
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Old 07-11-2019, 07:01 PM   #19
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Magna View Post
The trick is to get a cheap enough car that will hold it's value.
...imagines a bevy of young executives fanging around in EL Fairmont Ghias
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Old 07-11-2019, 08:13 PM   #20
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Default Re: Anybody salary sacrificed lately?

Salary sacrifice for a new vehicle only works if you're intending to buy
a new private vehicle anyway. Be careful with fully maintained leases
as the more other people do for you, the more they charge and tack on
as interest.

A better option is to get a company vehicle as part of your contract/salary
package and let them do the dance with costs and FBT compliance.
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Old 07-11-2019, 08:37 PM   #21
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Default Re: Anybody salary sacrificed lately?

If I could I'd negotiate a car allowance supplement to my salary, run my own vehicle with a fuel card. To me the allure of sacrificing salary is about driving a nice new car, nothing wrong with that but it comes at a cost. I was told once the cheapest motoring is to buy a 12month old vehicle outright, nurse it and sell it privately after 2 or 3 years. Supposedly minimal maintenance costs with maximum resale value. Ideally should lose a thousand dollars a year. IF the car is nursed
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Old 08-11-2019, 03:43 AM   #22
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Default Re: Anybody salary sacrificed lately?

Quote:
Originally Posted by Sprintey View Post
...imagines a bevy of young executives fanging around in EL Fairmont Ghias
I own one of those and am restoring it, it is a daily at the moment and I reckon I have spent over $2k so far and not done the paint
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