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.

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.

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.

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.

	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).

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

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

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

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