Everyone’s looking to save a few extra bucks. Here are four ways you can reduce your taxable income (if you earn a salary) through Salary Packaging – and thus save yourself some cash.
- Novated Leasing. If you’re looking to buy a new car, consider Novated Leasing. This is an arrangement whereby your employer agrees to make the Lease payments on the Motor Vehicle and you make a Pre & Post Tax Contribution from your Salary to cover the costs of the Lease payments. Clear as mud? Suffice to say, you will generally be better off tax-wise purchasing a Motor Vehicle through Novating Leasing rather than purchasing it in your own name.
- Salary Packaging work-related expenses. Have you got any work related Expenses that you need to pay? Even though you will get a tax deduction for these, if you were to Salary Package these expenses you get the Income Tax Benefit at the time that you pay the Expense, rather than when you lodge your tax return, which in some cases can be up to 18 months. If the expense incurs GST, and your employer is registered for GST, you will also save on the GST component of the Expense.
- Salary Packaging tools of trade. If you use a Portable Electronic Device (eg Laptop, iPad) as part of your work, you can Salary Package the cost and reap the benefits of the Income Tax and GST savings.
- NFP exemptions. If you work for a Not-For-Profit organisation, you may be entitled to a number of FBT exemptions.
To make sure you get all the deductions you’re entitled to, contact our FBT expert Tim Sherlock today on (03) 8888 4000 or email@example.com.