Salary Sacrifice

[veritas]

Hi,

anyone familiar with salary sacrifice with good/bad experiences, please post your experiences here.

Much appreciated!

Thank you!

[joannep]

Hi,

Do you mean salary sacrifice or salary packaging?

Salary sacrifice is the only option in the private sector and is usually only available for things like superanuation/lap tops.

Salary packaging is available through the public and not for profit sector where you can package up to a certain amount and choose where the money goes, ie into paying your mortgage.

I have done both and found both to be very worth while with no problems.

[veritas]

hi!

i meant salary packaging. Not the superannuation thing... does salary packaging incur fringe benefits tax? someone told me they halved the cost of their car through salary packaging due to the amount of money saved on tax. but i read on the agreements for salary packaging that some things incur the fringe benefits tax, which is standard at 46.5%. so i m not sure how it works out to save anything?

thanks!

[Grace Oz]

While I was still working I salary sacrificed as we called it.

You could elect to have your gas, electricity, phone, mortgage, etc etc, paid from your wage. BEFORE tax. Therefore the taxable component of your wage was lower. Hence, less tax paid. :)

Whatever you chose had to be something which you could not later draw from.

It worked well and I'd recommend it.

[joannep]

Hi,

Yes, for car payments it is very worthwhile. I didn't have any problems with fringe benefits.