Salary sacrifice who has done it??

[HSV V8]

Just been told at work (yesterday) thati can get a car (holden of course) on this salary sacrifice thing were you egt everything included ie fuel insurance rego service etc etc

Now has anyone on here done it or know anything about it??

As this morning i went to holden dealers who were closed but i had a look around and i seen a really nice 2007 r8 clubsport 6.0 v8, 307kw written on the back for $47k..

Now the guy at work has a hilux sr5 which he pays around $200 a week for with everything included and his motor was $50k new

And that got me thinking if they let you get 2nd hand i could go for that r8...

Has anyone any thoughts or information on this salary sacrifice or has anyone done it?? ie pros and cons of it??

[Reaper]

You need to consider the FBT tax implications of such an arrangement. In years gone by they were quite favorable however it's been tightened up of late. I would consult with your accountant or financial advisor before making any purchase.

Reaper

[HSV V8]

I see, i just have a basic salary no over time..

I was just thinking for a set amount out of my wage each week everything is included...

[nathanVY]

Salary sacrifice is great, I did it for my first laptop worked very well. Not every employer will let you do that either, obviously bigger decision with 47 grand lol.

[HSV V8]

yeah i just thought it would be a good way too get me in a quality clubsport...!!!


I have rung the guy up who does it and left a voicemail asking him to ring me back he was at my works last week and a few of the workers have signed up for it but i missed him....

[nathanVY]

do it man, if you love your cars get it you'll love going to work so much more haha

[HSV V8]

Yeah once this guy rings me back i will inquire about it, and hopefully it will work on my favor esp if i can get a 2nd hand car ie 2007 model....

The guy at work reckons its only new cars though.....

[Tree cutter]

I thought it was only for new cars. It is supposed to reduce the amount of tax you pay. It used to be that the car payments were taken out of your pay before tax was deducted so you reduced your taxable income.

[HSV V8]

I bet it is you know

Soon find out though....

[jay_wr8]

I thought it was only for new cars. It is supposed to reduce the amount of tax you pay. It used to be that the car payments were taken out of your pay before tax was deducted so you reduced your taxable income.

Yeah thats right, mum just did it to buy a cruze

[HSV V8]

Oh bugger

Dont want a cruze lol

Looks like its back to the older clubsports for me then....!!!

[Tom_1569]

From my understanding every work place has different entitlements with it.
Over all it is just money taken out (repayments etc) before Tax, so you pay less tax, and sometime fall into a lower tax bracket, so is very beneficial.
At my work place(Goverment organisation), we can only Salary 9 grand a year, or 18grand a year if the extra 9 is morgage repayments.
It may only be used for Morgage, credit card, meals and entertainment, car repayments, or car leasing.
With vehicles any car loan can be sacrificed, but to claim petrol, etc it has to be a leased car.
A girl i worked with looked into the lease option which gives you a brand new car, insurance, rego, all services & parts, and a certain allocation of fuel, it worked out about $380 a week or some shit with 1000km's a week, it was not worth it, unless you want a large tax dodge but then you have to be earing enough.

[HSV V8]

Yeah i dont think i earn enough, i too work for the goverment though...

I shall just see what figures the fella comes up with

[dirt drifter]

some blokes i work with have lease cars, nothing flash though.

they were saying a while back that depending on which lease mob you're with u could get a car up to 3 yrs old, if this is still the case or not i dunno. they also say lease's are best for people who do lots of km's, apparently if u go over your allocated km's its no big deal however if you're under it can sting u pretty bad.

one more thing to think about, not every employer does this leasing business so if u want to change jobs your next employer has to do leasing too

[Cunningstunter]

Leasing is THE way to go. Even if you had cash or the car was GIVEN to you, you are far better off leasing than owning IF you were going to get a new car anyway.

If you are self employed and in a trade whereby commerical vehicle is required then you can get the utes FBT Exempt.....even if not a tradie, if your boss is willing to tick the check box on the tax form saying the car (commerical or not) is for work ONLY then you can go FBT exempt on ANY car NOT designed to carry passengers....

Look at it this way > my V6 wagon which I own outright, would cost me about $10,000-$12000/year to run for 30,000kms. This is Tyres, rego, insurance, fuel EVERY cost associated. So this car stays at home with wifey and does like 5000kms/year....very expensive ones at that!
I pay all of this POST tax..........If you have a loan for that car you are paying loan post tax.
With a lease, the finance amount for your car is paid pre tax and you only pay 55% off over the lease term. Yes you also then have a 'baloon' type payment to make, at which point you either hand the car back in for a new one OR re-lease that same vehicle (remembering the car needs to be less than 7years old at end of lease time). Again if you got a car loan for 50K you are paying for that POST TAX....unlike car leasing...

When you lease, you pay for your car BEFORE you pay tax. My old 4cyl hatch back was $600/year for rego AFTER tax, so my 'pre tax' earnings would have to be roughly $900 (depends which tax bracket you are in too). With my ute, rego is also $900/year BUT I pay before tax so it's really costing me $600 post tax figure.
Fuel is now less than $1/litre (bring on the V8 in that case....)
Insurance costs all now costing you the your tax rate less.

This is what you do - contact a leasing company. NLC and Easifleet are 2 I have used both very good. Get them to give you quote on new car, and on same spreadsheet have them do a costing on the car you currently own. For me the difference was $50/week for a much much better car AND on top of that I reduce the tax I pay by $7000/year which I would not have done by driving/owning my own car.

Even if I gave you the 50K to buy the car you'd still have post tax running costs (Rego for ute $900 odd, pre tax amount would be like $1200+) so leasing is THE way to go.

If you CANNOT get FBT exempt THEN you must consider how many kms you travel. Leasing NOT recommended for ppl travellingt less than 25,000kms/year AND in these cases owning the car becomes more attactive.
The FBT charges are as follows:
Under 25,000kms is charged at 20% of value of vehicle
25,001-39,999 charged at 11%
40,000 and over charged at 7%.

Do the sums WITH FBT included, for me I had to pay FBT as IT worker I don't qualify for FBT exempt but with only 30,000kms I was STILL better off leasing my brand new V8 ute over owning the $2000 4cyl hatchback - well it costs me an extra $50/week but who cares! Remember you never stick your hand into your pocket for POST TAX expenses again.......

[HSV V8]

I see, the firm is called "fleetnet" who came into work (though i missed em) i am still waiting on him to return my call, guessing coz of the long weekend he aint working.....

Yeah i dont plan on changeing jobs yet....

3 years old sounds good though