A couple more questions: i think the kms would be around 20,000, so FBT is 20%? Is that paid by the employee or the employer? Note that the car would not be used for private use only. Also, I believe expenses (insurance, repairs etc.) (fuel?) can be salary packaged too. Is that true?
Tax rate is usually 17% (less 5% fee), thus saving (if they don't have to pay FBT) is 12%. If we say interest rate is 10%, and we assume they can safely (internet savings account) earn (after tax) about 4%, then saving is only about 6%. On a 20K car, this is about $1200. If we also say that by paying cash we can save a little on the new car, then it is not worth the hassle, or are we missing something here?
