What is the difference between salary packaging and salary sacrifice

You should seek further advice prior to entering such an arrangement. Every year we help thousands of Australians achieve a better taxation result. For your nearest office call 13 23 Phone Appointments available. Find an office to book your appointment. Salary Sacrifice for Employees: How it Works 4 min read. What Can I Salary Sacrifice? The most common salary packaging items are: Car fringe benefits i. Novated Lease Expense payment fringe benefits incl.

Benefits of Salary Sacrifice The advantages of salary sacrifice are that you are buying the benefit in pre tax dollars. Do you reimburse your employer for the private use? The private use of the car affects the FBT payable Some benevolent institutions do not pay FBT FBT is payable by the employer not the employee Many salary package deals require the employee to reimburse the employer for the FBT costs out of the salary package. Points to note: Motor cars are subject to FBT but have concessional rates according to private use Expenses such as school fees, personal expenses and mortgage payments attract Fringe Benefits Tax which is based on the top marginal rate of tax.

Performance Overview Graphs Unit prices. Online investment advice. Compare options. Change your investment options. How QSuper invests. How much insurance cover do you need. Change or cancel your insurance. Make an insurance claim. What is your super question? Member Online. Username: Forgot username? Password: Forgot password? Products Expand. Super Expand. Consolidate your super Grow your super Expand. Salary sacrifice Super co-contribution Voluntary contributions Spouse contributions Contribution caps Tax deductions.

Retirement Expand. Why retire with QSuper Retirement accounts Expand. Retirement planning Expand. Make your super last in retirement The Age Pension and Super. Access your super Expand. When can you access your super Withdraw your super. Investments Expand. Performance Expand. Exempt benefits are those that do not attract FBT and therefore can be purchased with pre-tax income without the need for an after-tax contribution.

Exempt benefits are limited to items that are work-related and you can usually only purchase one item each FBT year if items have substantially the same function, for example, a laptop and a tablet.

Exempt benefits include:. Salary sacrificing into super can be a tax-effective way of boosting your super balance and increasing your retirement income. Most ADF members will have a marginal tax rate of at least For MSBS members, salary sacrificed super contributions do not count towards your maximum benefit limits.

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