Salary Sacrificing

[Guest Carkyde]

Hi Can anyone explain salary packaging and sacrificing to me. It all seems really complicated!!!

 

Thanks a million.

[Rachiegarlo]

The place you work will set out how much you are allowed to salary sacrifice and what for. For example the government hospital I work for allows Nurses to salary sacrifice $8770 into utility bills, mortgage, school fees, car lease, personal loans, child care housing rents.

 

Each fortnight $350 is taken out of your pay before it is taxed and directed into your loans or you present receipts for bills or rent and it goes into your account to repay you for these.

 

This means that tax is paid on the net amount after above amount has been taken out. You pay less tax and if you added back in the amount sacrificed you would be better off than if you hadn't sacrificed it. Basically you get the amount tax free. The gov in its wisdom, however is now going to use the grossed up value of this to work out your salary for family tax allowance, adding about $17000 onto your income which will lower the amount of allowance you will be entitled to. What they give with one hand they soon find a way to take it away!

 

Some institutions only allow salary sacrificing into superannuation or car lease, though. Nurses have it good cos the gov is trying to keep nurses in the gov hospitals.

[Scousemouse]

Hi,

the emploeyers usually tell you if you can get, or are eligible for this! The LAFHA can be checked via the ATO website:)

Having said that, i e-mailed my future employers 3 days ago about this; no reply yet, but i expect the laid back way would account!

[Guest batleys]

hi can anyone help me im a charge nurse in the uk ive been qualified for 5 years by the time i immagrate to adelaide i will have been qualified 6 years im just wondering what my salary would been in oz

 

many thanks chris

[Guest Lisado]

I am in the UK and salary sacrifice in the past with childcare costs and now with Christmas savings club and pensions and it works really well. I'm pleased to see they do that in Oz too.

 

Lisa