Thanks for that guys.
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?
- Forums
- General
- salary packaging car
Thanks for that guys.A couple more questions: i think the kms...
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
CC9
Chariot Corporation (ASX:CC9) refines Black Mountain strategy, launching Pilot Mine to seize U.S. lithium opportunity
NEWS
Antler Copper Project hits major permitting milestone – air quality permit advances to final review