Full FBT Employer - Motor Vehicle Example

Choose your nearest Salary and Motor Vehicle cost:

Salary $50,000 - Motor Vehicle $30,000 - Travelling 25,000 kms
Salary $60,000 - Motor Vehicle $30,000 - Travelling 25,000 kms
Salary $80,000 - Motor Vehicle $30,000 - Travelling 25,000 kms
Salary $100,000 - Motor Vehicle $30,000 - Travelling 25,000 kms
Salary $100,000 - Motor Vehicle $50,000 - Travelling 15,000 kms
Salary $100,000 - Motor Vehicle $50,000 - Travelling 25,000 kms

Salary $50,000
Motor Vehicle $30,000
Travelling 25,000 Kilometres

Benefit Items

Not Packaged

Packaged

RCM Method

Gross Salary
$50,000

$50,000

$50,000

Less

Motor Vehicle Operating Costs

$13,712

$10,412

Fringe Benefits Tax

$3,168

GST Payable On RCM

$300

Total Deductions Before Tax

$16,880

$10,712

Input Tax Credit

$1,246

$1,246

Gross Salary after Packaging
$50,000

$34,366

$40,534

Less

PAYG and Medicare Levy
$11,100

$6,175

$8,118

Net Salary after PAYG and Medicare
$38,900

$28,191

$32,416

Less After Tax Costs

Non-Packaged Motor Vehicle Costs
$13,712

Recipient Contribution

$3,300

Disposable Income
$25,188

$28,191

$29,116

Estimated Net Fortnightly Savings

$115

$151

Estimated Net Annual Savings
$3,003

$3,928

Increase in Net Salary: 12%

Increase in Net Salary (RCM): 15.5%

Salary $60,000
Motor Vehicle $30,000
Travelling 25,000 Kilometres

Benefit Items	Not Packaged	Packaged	RCM Method
Gross Salary	$60,000	$60,000	$60,000
Less
Motor Vehicle Operating Costs		$13,712	$10,412
Fringe Benefits Tax		$3,168
GST Payable On RCM			$300
Total Deductions Before Tax		$16,880	$10,712
Input Tax Credit		$1,246	$1,246
Gross Salary after Packaging	$60,000	$44,366	$50,534
Less
PAYG and Medicare Levy	$14,250	$9,325	$11,268
Net Salary after PAYG and Medicare	$45,750	$35,041	$39,266
Less After Tax Costs
Non-Packaged Motor Vehicle Costs	$13,712
Recipient Contribution			$3,300
Disposable Income	$32,038	$35,041	$35,966
Estimated Net Fortnightly Savings		$115	$151
Estimated Net Annual Savings		$3,003	$3,928

Increase in Net Salary: 9%

Increase in Net Salary (RCM): 12%

Salary $80,000
Motor Vehicle $30,000
Travelling 25,000 Kilometres

Benefit Items	Not Packaged	Packaged	RCM Method
Gross Salary	$80,000	$80,000	$80,000
Less
Motor Vehicle Operating Costs		$13,712	$10,412
Fringe Benefits Tax		$3,168
GST Payable On RCM			$300
Total Deductions Before Tax		$16,880	$10,712
Input Tax Credit		$1,246	$1,246
Gross Salary after Packaging	$80,000	$64,366	$70,534
Less
PAYG and Medicare Levy	$21,050	$15,625	$17,568
Net Salary after PAYG and Medicare	$58,950	$48,741	$52,966
Less After Tax Costs
Non-Packaged Motor Vehicle Costs	$13,712
Recipient Contribution			$3,300
Disposable Income	$45,238	$48,741	$49,666
Estimated Net Fortnightly Savings		$134	$170
Estimated Net Annual Savings		$3,503	$4,428

Increase in Net Salary: 8%

Increase in Net Salary (RCM): 10%

Salary $100,000
Motor Vehicle $30,000
Travelling 25,000 Kilometres

Benefit Items	Not Packaged	Packaged	RCM Method
Gross Salary	$100,000	$100,000	$100,000
Less
Motor Vehicle Operating Costs		$13,712	$10,412
Fringe Benefits Tax		$3,168
GST Payable On RCM			$300
Total Deductions Before Tax		$16,880	$10,712
Input Tax Credit		$1,246	$1,246
Gross Salary after Packaging	$100,000	$84,366	$90,534
Less
PAYG and Medicare Levy	$29,350	$22,862	$25,422
Net Salary after PAYG and Medicare	$70,650	$61,504	$65,112
Less After Tax Costs
Non-Packaged Motor Vehicle Costs	$13,712
Recipient Contribution			$3,300
Disposable Income	$56,938	$61,504	$61,812
Estimated Net Fortnightly Savings		$115	$151
Estimated Net Annual Savings		$4,566	$4,874

Increase in Net Salary: 8%

Increase in Net Salary (RCM): 8.5%

Salary $100,000
Motor Vehicle $50,000
Travelling 15,000 Kilometres

Benefit Items	Not Packaged	Packaged	RCM Method
Gross Salary	$100,000	$100,000	$100,000
Less
Motor Vehicle Operating Costs		$16,734	$6,734
Fringe Benefits Tax		$9,601
GST Payable On RCM			$909
Total Deductions Before Tax		$26,335	$7,643
Input Tax Credit		$1,521	$1,521
Gross Salary after Packaging	$100,000	$75,186	$93,878
Less
PAYG and Medicare Levy	$29,350	$19,052	$26,809
Net Salary after PAYG and Medicare	$70,650	$56,134	$67,069
Less After Tax Costs
Non-Packaged Motor Vehicle Costs	$16,734
Recipient Contribution			$10,000
Disposable Income	$53,916	$56,134	$57,069
Estimated Net Fortnightly Savings		$85	$121
Estimated Net Annual Savings		$2,218	$3,153

Increase in Net Salary: 4%

Increase in Net Salary (RCM): 6%

Salary $100,000
Motor Vehicle $50,000
Travelling 25,000 Kilometres

Benefit Items	Not Packaged	Packaged	RCM Method
Gross Salary	$100,000	$100,000	$100,000
Less
Motor Vehicle Operating Costs		$18,834	$13,334
Fringe Benefits Tax		$5,280
GST Payable On RCM			$500
Total Deductions Before Tax		$24,114	$13,834
Input Tax Credit		$1,712	$1,712
Gross Salary after Packaging	$100,000	$77,598	$87,878
Less
PAYG and Medicare Levy	$29,350	$20,053	$24,319
Net Salary after PAYG and Medicare	$70,650	$57,545	$63,559
Less After Tax Costs
Non-Packaged Motor Vehicle Costs	$18,834
Recipient Contribution			$5,500
Disposable Income	$51,816	$57,545	$58,059
Estimated Net Fortnightly Savings		$220	$240
Estimated Net Annual Savings		$5,729	$6,243

Increase in Net Salary: 11%

Increase in Net Salary (RCM): 12%

Disclaimer: The calculations contained in the above example are estimates only and are based on packaging parameters and do not take into account your individual circumstances. The calculations assumes, that your employer is eligible to claim back the GST and returns it to your package and that you are claiming the tax-free threshold and that you have no other salary packaged components or additional income/deductions, such as an investment property and are based on Tax rates for 2006-2007. The estimated annual savings are based on the assumption that the financing of the motor vehicle outside of the salary packaging arrangement is on the same terms and conditions as the novated lease quotation. We recommend that you obtain independent financial advice prior to proceeding with a salary packaging arrangement.