Novated Lease
0 – 14,999kms per year
Assumptions:
- Gross Annual Salary: $60,000
- Vehicle Base Value: $30,000 (excluding on-road costs)
- Lease Term: 3 years
- Annual Vehicle Lease & Operating Costs: $13,000
- Travelling between 0 – 14,999kms per FBT Year (statutory percentage of 20%)
|
Not Salary Packaging
|
Salary Packaging (with FBT)
|
Gross Salary
|
$60,000
|
$60,000
|
Less
|
|
|
Vehicle Lease & Running Costs
|
$0
|
$13,000
|
Fringe Benefits Tax
|
$0
|
$2,996
|
Plus
|
|
|
Input Tax Credits
|
$0
|
$1,182
|
Gross Salary after Packaging
|
$60,000
|
$45,186
|
Less
|
|
|
PAYG and Medicare Levy
|
$11,947
|
$6,910
|
Net Salary
|
$48,053
|
$38,276
|
Less After Tax Costs
|
|
|
Unpackaged Vehicle - Lease & Running Costs
|
$13,000
|
$0
|
Net Disposable Income
|
$35,053
|
$38,276
|
Net Annual Savings
|
$0
|
$3,223
|
Term of Lease Saving
|
$0
|
$9,669
|
Travelling 0 - 14,999 kms
|
From 1 April 2012
|
From 1 April 2013
|
From 1 April 2014
|
Net Annual Savings
|
$3,223
|
$3,223
|
$3,223
|
Statutory Percentage
|
20%
|
20%
|
20%
|
Concession Cap Used (grossed up)
|
$12,389
|
$12,389
|
$12,389
|
Concession Cap Remaining (grossed up)
|
$17,611
|
$17,611
|
$17,611
|
Where a novated lease vehicle travels between 1 to 14,999 kilometres
in an FBT Year, the distance travelled will not affect
the FBT liability incurred by the vehicle, or the amount of your
FBT Concession Cap consumed by the novated lease vehicle. This is because
the same statutory percentage (20%) applies to the
vehicle, and therefore the vehicle has the same taxable value when travelling in
this kilometre range.
Novated Lease
15,000 – 24,999kms per FBT year
Assumptions:
- Gross Annual Salary: $60,000
- Vehicle Base Value: $30,000 (excluding on-road costs)
- Lease Term: 3 years
- Annual Vehicle Lease & Operating Costs: $15,000
- Travelling between 15,000 – 24,999kms per FBT Year (statutory percentage of 20%)
|
Not Salary Packaging
|
Salary Packaging (with FBT)
|
Gross Salary
|
$60,000
|
$60,000
|
Less
|
|
|
Vehicle Lease & Running Costs
|
$0
|
$15,000
|
Fringe Benefits Tax
|
$0
|
$2,996
|
Plus
|
|
|
Input Tax Credits
|
$0
|
$1,364
|
Gross Salary after Packaging
|
$60,000
|
$43,368
|
Less
|
|
|
PAYG and Medicare Levy
|
$11,947
|
$6,292
|
Net Salary
|
$48,053
|
$37,076
|
Less After Tax Costs
|
|
|
Unpackaged Vehicle - Lease & Running Costs
|
$15,000
|
$0
|
Net Disposable Income
|
$33,053
|
$37,076
|
Net Annual Savings
|
$0
|
$4,023
|
Term of Lease Saving
|
$0
|
$12,069
|
Travelling 15,000 – 24,999kms kms
|
From 1 April 2012
|
From 1 April 2013
|
From 1 April 2014
|
Net Annual Savings
|
$4,023
|
$4,023
|
$4,023
|
Statutory Percentage
|
20%
|
20%
|
20%
|
Concession Cap Used (grossed up)
|
$12,389
|
$12,389
|
$12,389
|
Concession Cap Remaining (grossed up)
|
$17,611
|
$17,611
|
$17,611
|
Where a novated lease vehicle travels between 15,000 to 24,999 kilometres
in an FBT Year, the distance travelled will not affect
the FBT liability incurred by the vehicle, or the amount of your
FBT Concession Cap consumed by the novated lease vehicle. This is because
the same statutory percentage (20%) applies to the
vehicle, and therefore the vehicle has the same taxable value when travelling in
this kilometre range.
Novated Lease
25,000 – 40,000kms per FBT year
Assumptions:
- Gross Annual Salary: $60,000
- Vehicle Base Value: $30,000 (excluding on-road costs)
- Lease Term: 3 years
- Annual Vehicle Lease & Operating Costs: $17,000
- Travelling between 25,000 – 40,000kms per FBT Year (statutory percentage varies
- see table below)
|
Not Salary Packaging
|
Salary Packaging (with FBT)
|
Gross Salary
|
$60,000
|
$60,000
|
Less
|
|
|
Vehicle Lease & Running Costs
|
$0
|
$17,000
|
Fringe Benefits Tax
|
$0
|
$2,546
|
Plus
|
|
|
Input Tax Credits
|
$0
|
$1,545
|
Gross Salary after Packaging
|
$60,000
|
$41,999
|
Less
|
|
|
PAYG and Medicare Levy
|
$11,947
|
$5,827
|
Net Salary
|
$48,053
|
$36,172
|
Less After Tax Costs
|
|
|
Unpackaged Vehicle - Lease & Running Costs
|
$17,000
|
$0
|
Net Disposable Income
|
$31,053
|
$36,172
|
Net Annual Savings
|
$0
|
$5,119
|
Term of Lease Saving
|
$0
|
$15,357
|
Travelling 25,000 - 40,000 kms
|
From 1 April 2012
|
From 1 April 2013
|
From 1 April 2014
|
Net Annual Savings
|
$5,119
|
$4,823
|
$4,823
|
Statutory Percentage
|
17%
|
20%
|
20%
|
Concession Cap Used (grossed up)
|
$10,530
|
$12,389
|
$12,389
|
Concession Cap Remaining (grossed up)
|
$19,470
|
$17,611
|
$17,611
|
Where a novated lease vehicle travels between 25,000 to 40,000 kilometres
in an FBT Year, the distance travelled will impact the
FBT liability incurred by the vehicle, or the amount of your FBT
Concession Cap consumed by the novated lease vehicle. The statutory percentage
used to calculate the vehicle’s taxable value (and hence used to calculate the FBT
payable) will change each new FBT Year up to 1st April 2013 (see table above) applicable
to new novated lease arrangements.
Novated Lease
40,001kms or more per FBT year
Assumptions:
- Gross Annual Salary: $60,000
- Vehicle Base Value: $30,000 (excluding on-road costs)
- Lease Term: 3 years
- Annual Vehicle Lease & Operating Costs: $19,000
- Travelling 40,001kms or more per FBT Year (statutory percentage varies each year
- see table below)
|
Not Salary Packaging
|
Salary Packaging (with FBT)
|
Gross Salary
|
$60,000
|
$60,000
|
Less
|
|
|
Vehicle Lease & Running Costs
|
$0
|
$19,000
|
Fringe Benefits Tax
|
$0
|
$1,947
|
Plus
|
|
|
Input Tax Credits
|
$0
|
$1,727
|
Gross Salary after Packaging
|
$60,000
|
$40,780
|
Less
|
|
|
PAYG and Medicare Levy
|
$11,947
|
$5,412
|
Net Salary
|
$48,053
|
$35,368
|
Less After Tax Costs
|
|
|
Unpackaged Vehicle - Lease & Running Costs
|
$19,000
|
$0
|
Net Disposable Income
|
$29,053
|
$35,368
|
Net Annual Savings
|
$0
|
$6,315
|
Term of Lease Saving
|
$0
|
$18,945
|
Travelling more than 40,001kms
|
From 1 April 2012
|
From 1 April 2013
|
From 1 April 2014
|
Net Annual Savings
|
$6,315
|
$5,920
|
$5,623
|
Statutory Percentage
|
13%
|
17%
|
20%
|
Concession Cap Used (grossed up)
|
$8,053
|
$10,530
|
$12,389
|
Concession Cap Remaining (grossed up)
|
$21,947
|
$19,470
|
$17,611
|
Where a novated lease vehicle travels between 40,001 kilometres or
more in an FBT Year, the distance travelled will
impact the FBT liability incurred by the vehicle, or the amount of your
FBT Concession Cap consumed by the novated lease vehicle. The statutory
percentage used to calculate the vehicle’s taxable value (and hence used to calculate
the FBT payable) will change each new FBT Year up to 1st April 2014 (see table above)
applicable to new novated lease arrangements.
In-House School Fees
($13,000 per year)
|
Not Salary Packaging
|
Salary Packaging (with FBT)
|
Gross Salary
|
$60,000
|
$60,000
|
Less
|
|
|
In-House School Fees
|
$0
|
$13,000
|
Fringe Benefits Tax
|
$0
|
$3,955
|
Gross Salary after Packaging
|
$60,000
|
$43,045
|
Less
|
|
|
PAYG and Medicare Levy
|
$11,947
|
$6,182
|
Net Salary
|
$48,053
|
$36,863
|
Less After Tax Costs
|
|
|
In-House School Fees
|
$13,000
|
$0
|
Net Disposable Income
|
$35,053
|
$36,863
|
Net Annual Savings
|
$0
|
$1,810
|
The table below shows the Income Tax savings you can achieve when packaging $13,000 of in-house school fees
per year, for each Income Tax bracket.
Annual Salary (after salary)
|
$6,000 - $37,000
|
$37,001 - $80,000
|
$80,001 - $180,000
|
$180,000+
|
Net Annual Saving
|
See note*
|
$1,810
|
$2,573
|
$3,929
|
*Where taxable income drops below $37,000 after packaging, the maximum value of
in-house school fees that can be packaged with a direct benefit
is $1,333 per year (the FBT-free component applicable
to in-house benefits only).
Laptop Computer
Assumptions:
- Gross Annual Salary: $60,000
- Laptop Cost: $2,200 including GST
*Greater than 50% business use is required to salary package
this benefit as FBT exempt.
|
Not Salary Packaging
|
Salary Packaging (with FBT)
|
Gross Salary
|
$60,000
|
$60,000
|
Less
|
|
|
Laptop Computer
|
$0
|
$2,200
|
Fringe Benefits Tax
|
$0
|
$0
|
Plus
|
|
|
Input Tax Credits
|
$0
|
$200
|
Gross Salary after Packaging
|
$60,000
|
$58,000
|
Less
|
|
|
PAYG and Medicare Levy
|
$11,947
|
$11,267
|
Net Salary
|
$48,053
|
$46,733
|
Less After Tax Costs
|
|
|
Laptop Computer
|
$2,200
|
$0
|
Net Disposable Income
|
$45,853
|
$46,733
|
Net Annual Savings
|
$0
|
$880
|
Effective Laptop Cost = $2,200 - $880 tax saving = $1,320 (equivalent to 40% price
discount)
The table below shows the Income Tax savings you can achieve when purchasing a laptop
computer at various prices, for each Income Tax bracket.
Income Range
|
$18,201 - $37,000
|
$37,001 - $80,000
|
$80,001 - $180,000
|
More than $180,000
|
Annual Expense
|
Tax Savings
|
Tax Savings
|
Tax Savings
|
Tax Savings
|
$1,100
|
$305
|
$440
|
$485
|
$565
|
$2,200
|
$610
|
$880
|
$970
|
$1,130
|
$3,300
|
$915
|
$1,320
|
$1,455
|
$1,695
|
$4,400
|
$1,220
|
$1,760
|
$1,940
|
$2,260
|
$5,500
|
$1,525
|
$2,200
|
$2,425
|
$2,825
|
Everyday Purchases Card
The table below outlines the estimated Income Tax savings you may achieve by salary packaging your entire
FBT Rebate Concession Cap ($16,049 per year in real dollars) towards Southgate’s Everyday Purchases Card.
Annual Income
|
Tax Bracket (inc. Medicare Levy)
|
Annual Tax Saving
|
$25,000
|
20.5% ($18,201 to $37,000 income level)
|
(negative saving)
|
$35,000
|
|
(negative saving)
|
$45,000
|
34.0% ($37,001 to $80,000 income level)
|
$230*
|
$55,000
|
|
$517*
|
$65,000
|
|
$669
|
$75,000
|
|
$669
|
$85,000
|
38.5% ($80,001 to $180,000 income level)
|
$894
|
$95,000
|
|
$1,344
|
$105,000 - $180,000
|
|
$1,718
|
$195,000
|
46.5% ($180,001 and above income level)
|
$2,921
|
$205,000 +
|
|
$3,582
|
*Amount salary packaged reduced below $16,049 to optimize direct tax saving
Meal & Accommodation Card
The table below outlines the estimated Income Tax savings you may achieve by salary packaging different annual
amounts towards the Meal & Accommodation Card, for each Income Tax bracket. The calculations are based on the
assumption that your taxable income will remain within the same marginal Income Tax bracket after the payment
of your meal entertainment expenses. Income level should be based on the reduced income after deducting all
other salary packaged fringe benefits.
Income Range
|
$18,201 - $37,000
|
$37,001 - $80,000
|
$80,001 - $180,000
|
More than $180,000
|
Annual Expense
|
Tax Savings
|
Tax Savings
|
Tax Savings
|
Tax Savings
|
$1,000
|
($154)
|
$42
|
$107
|
$223
|
$2,000
|
($309)
|
$83
|
$214
|
$446
|
$3,000
|
($463)
|
$125
|
$321
|
$670
|
$4,000
|
($617)
|
$167
|
$428
|
$893
|
$5,000
|
($772)
|
$208
|
$535
|
$1,116
|
$6,000
|
($926)
|
$250
|
$642
|
$1,339
|
$7,000
|
($1,080)
|
$292
|
$749
|
$1,562
|
$8,000
|
($1,235)
|
$334
|
$856
|
$1,786
|
$9,000
|
($1,389)
|
$375
|
$963
|
$2,009
|
$10,000
|
($1,543)
|
$417
|
$1,070
|
$2,232
|