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The Pub For General Automotive Related Talk |
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#1 | ||
FF.Com.Au Hardcore
Join Date: Feb 2008
Location: Perth, Northern Suburbs
Posts: 4,881
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I haven't looked into this in detail for a few years.
My background was as a Tax Accountant, but haven't stayed completely current. Last update I recall, one of the governments wound up the taxable amount to the max, and basically made it useless for most people. Since then, I've had a look at a few quote for people, and they were all absolute fleeces. I'm wondering if anyone has actually done one where they properly crunched the numbers and arrived at a next saving? |
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#2 | ||
FF.Com.Au Hardcore
Join Date: Mar 2005
Posts: 7,691
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I salary sacrifice into my Superannuation
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#3 | ||
Virtuous Bogan (TM)
![]() Join Date: Jan 2005
Location: TAS
Posts: 27,559
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I have been trying to justify a lease car for the past 4 years but cant see how it is actually beneficial.
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#5 | ||
AKA "the other bloke"
Join Date: Jan 2008
Posts: 1,966
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Agreed, only loan I've ever paid is for property, everything else is cash or not at all, super now takes half my pay, that way I can retire at 60 a happy man
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Her's: 2000 AU II Fairmont Ghia 75th anniversary VCT meteorite & 2014 yaris - white His Toy: 2012 fg II GT-E, emperor red His: VS Ute 5 Litre 5 speed (povo pack) His: 2012 FG II GS, Vanish His: 2003 BA GT-P, Lightening Strike Jnr: 2002 AU III Falcon XR6 ST, 5 speed Blueprint & 1978 XC Fairmont Neptune Blue Previous: 1976 HX 50th Anniversary Kingswood 2014 FGX G6E Turbo 1980 XD Falcon GL 2003 BA Falcon XR6 1991 EB Falcon S 1989 EA Fairmont 1982 XE Fairmont 1968 XT Falcon |
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#6 | ||
FF.Com.Au Hardcore
Join Date: Mar 2005
Posts: 7,691
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be very careful of novated leases
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#7 | ||
Virtuous Bogan (TM)
![]() Join Date: Jan 2005
Location: TAS
Posts: 27,559
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yeah I dont know how people do it, im on a good wage and just cant justify it.
You would have to be on 250k+ I would think. Right now I get a "tool of trade car" for $15k that basically is unlimited use. Its not bad but I have to drive a hilux. Work claims its part of my TFR which is cheeky. But new job offers a car separate to package, so Im happy with that!
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#9 | |||
Donating Member
![]() Join Date: Jan 2005
Location: Morayfield
Posts: 27,895
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Quote:
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#10 | |||
FF.Com.Au Hardcore
Join Date: Mar 2005
Posts: 7,691
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Quote:
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#11 | ||
Virtuous Bogan (TM)
![]() Join Date: Jan 2005
Location: TAS
Posts: 27,559
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aaaand im going to find the contract
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#12 | ||
FF.Com.Au Hardcore
Join Date: Oct 2008
Location: Victoria
Posts: 7,854
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All the info here:
https://www.ato.gov.au/General/Fring...for-employees/ But if your a Nurse you can also salary package https://www.maxxia.com.au/news/salar...salary-package Novated lease - I've looked into that also, and couldnt see how it stacked up. I've had friends trying desperately to get their Kilometers up so not affected by FBT But I believe hat has now changed https://www.strattonfinance.com.au/n...-leasing-myths I will be looking into this again for our next car
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______________________________ 2015 Territory Titanium RWD Diesel - SOLD 2016 BMW X5 xdrive 30D Msport Seadoo Challenger 210SE 310HP |
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#13 | ||
FF.Com.Au Hardcore
Join Date: Nov 2005
Posts: 1,013
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It's definitely not for everyone, but it can work very well, especially people doing more than 30,000kms a year. (Due to accelerated depreciation, not FBT) The trick is to get a cheap enough car that will hold it's value.
If you use the ECM meaning the amount you would normally pay in FBT goes straight into your running costs, so it pretty much cancels out any FBT payable. Also if you have kids, the amount sacrificed might be offset with a higher family tax benefit. It can pretty much offset the amount sacrificed anyway. |
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#14 | ||
Regular Member
Join Date: Oct 2005
Posts: 458
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I havent looked at it for a few years. As mentioned already in this post doing enough kms is important.
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#15 | |||
All Bran = Regular Member
Join Date: Feb 2006
Location: BrizVegas
Posts: 1,970
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Quote:
Anyhoo, my wife's boss took it on with a new BA, then a BF and finally a Rav4. During that period he had no hope of getting the required kms so we used to swap cars and we'd take his on our road trips. Win/win. No FBT for him and a new car + free fuel for us to use. (Also had the benefit of discovering just what a POS the Rav4 was...)
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#16 | ||
FF.Com.Au Hardcore
Join Date: Mar 2005
Posts: 7,691
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When I had an issued company car pre-2000, the company paid the minimum 11% FBT (back then) so we didn't have to keep a log book
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#17 | ||
FF.Com.Au Hardcore
Join Date: Jan 2010
Posts: 11,277
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FBT is the reason why 4x4 dual cab utes and non-FBT one tonne utes became fashionable
first as novated leases and then as company supplied "pool vehicles" that only ever do that "incidental mileage" outside of work hours...even though driver regularly violate that stipulation. Tax department is never going to have the resources needed to crack down or even check for that kind of fraud, the best that they can do is nominate 10% FBT for all crew cab utes unless fully substantiated by log books. |
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#18 | ||
Regular Member
Join Date: Dec 2005
Location: Perth WA
Posts: 387
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I was in the company fleet leasing/management industry myself in the 1980s.
Later, when these lease deals started being advertised to the general public, if asked what I thought about them, I just said replace those words "Guaranteed Buy Back" with "Guaranteed TAKE BACK". However, later again, when the salary sacrifice deals became the in thing, and I was working for an airline, one of my work associates, a well paid aircraft engineer, did the deals with a new Camry Sport every 3 years, including maintenance and fuel, and he claimed it worked well for him. Me, I would be picking up the nearest barge pole to keep them away from me! Cheers.
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1967 XR 289 V8 Falcon (1st) - 1973 XLE 250 4spd Cortina (2nd) 1987 XF GL 4.1 Dual-Fuel Falcon (3rd) - 1996 EF 4.0 GLI Falcon (4th) 2003 BA 4.0 LPG Falcon Wagon (5th) 2016 SZ Territory TX 4.0 Petrol (6th & last?)(Sadly, written off) 2004 WRX (Retirement Toy) |
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#19 | ||
FF.Com.Au Hardcore
Join Date: Sep 2014
Location: Catland
Posts: 3,618
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...imagines a bevy of young executives fanging around in EL Fairmont Ghias
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I6 + AWD |
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#20 | ||
FF.Com.Au Hardcore
Join Date: Jan 2010
Posts: 11,277
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Salary sacrifice for a new vehicle only works if you're intending to buy
a new private vehicle anyway. Be careful with fully maintained leases as the more other people do for you, the more they charge and tack on as interest. A better option is to get a company vehicle as part of your contract/salary package and let them do the dance with costs and FBT compliance. |
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#21 | ||
Limited supply
Join Date: Jun 2017
Posts: 1,441
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If I could I'd negotiate a car allowance supplement to my salary, run my own vehicle with a fuel card. To me the allure of sacrificing salary is about driving a nice new car, nothing wrong with that but it comes at a cost. I was told once the cheapest motoring is to buy a 12month old vehicle outright, nurse it and sell it privately after 2 or 3 years. Supposedly minimal maintenance costs with maximum resale value. Ideally should lose a thousand dollars a year. IF the car is nursed
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#22 | ||
FF.Com.Au Hardcore
Join Date: Mar 2005
Posts: 7,691
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I own one of those and am restoring it, it is a daily at the moment and I reckon I have spent over $2k so far and not done the paint
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