All posts tagged: Salary Packaging

What can I salary package?

June 22, 2018 JBS Salary Packaging Salary Packaging No comments

Recently I met with a group of employees, they were interested in a novated lease and what this means to them when they salary package.

The concern they had was about the Fringe Benefits Tax (FBT) payable when they Novate a motor vehicle. The common thought was that to be able to salary package, they need to borrow money in the form of a novated lease so they could be eligible for salary packaging. However, this is not always the case.

Salary packaging has many different options that are available to each individual employee. There are some who want to buy a new car and are prepared to take out a novated lease. Others may already have a car which they already fully own and believe they would be excluded from salary packaging. However, this is not true as there is the opportunity to set up an associate lease and these lease payments are used to salary package, assuming it works in your circumstances.

Whether you decide to buy a new car or use a current vehicle that you already own along with the running expenses such as fuel, servicing costs, vehicle insurance and registration that you are already paying from your take home pay, it can be all budgeted for and withdrawn from your pre-tax salary via your salary packaging.

The FBT that is attributed to the motor vehicle is actually offset due to the running costs of the motor vehicle and by making a small after tax payment into your package, we can structure your package so there is no FBT payments needed to be made by you.

The structure of salary packaging is unique to each individual and as a result it will have an effect on how much money you can save in your weekly, fortnightly or monthly pay that you receive from your employer.

In addition to salary packaging a motor vehicle, you can also salary package some other common items that you may already be paying for out of your take home income each month, including:

– 1 x Mobile Phone
– 1 x Laptop
– 1 x IPad
– Your home internet

These items can be salary packaged providing you use them for primarily business related use (these items are FBT exempt items).

Depending on your employer status you may also be able to claim your mortgage, health care, child care and credit cards (there are limits and requirements to be eligible for these salary packaged items).

For more information about salary packaging and a personalised salary package report that is tailored to your needs please contact us on 03 8677 0677.

2018 FBT Year is Fast Approaching

March 6, 2018 JBS Salary Packaging Salary Packaging No comments

Last month I attended the NTAA 2018 Fringe Benefit Tax (FBT) Seminar, during the day we were provided with the changes to 2018 FBT laws for those ‘Rebatable’ and ‘Exempt Employers’. These changes take effect from 1st April which create opportunities for you and your employer.

Those who salary package products such as their mortgage, health insurance and alike will be subject to the new FBT capping and threshold for concessional taxed FBT employers. The type one and two benefits have also been reduced.

Over the next few weeks we will contact the individuals that this may affect and review the package and have a discussion as to what we need to do, to maximise your package without any additional liabilities.

There are some other housekeeping issues that need to be addressed for claim expenses such as meal entertainment and reimbursements. These are paper based, and we will issue them to the appropriate Salary Packaging employees in the next few weeks.

Did you know that an employer may save thousands by allowing employees to salary package (NTAA FBT Seminar 2018).

It has been noted that many employers are reluctant to offer salary packaging to their employees as they are fearful of an FBT liability that the company may have to pay.

By collecting a small amount of after tax (Post Tax) monies from the employee’s salary packaging this will reduce the FBT liability by the employer to pay any FBT to “$0”.

The employer in fact may get to save thousands in their payroll tax and workers compensation insurance payments, just by offering Salary Packaging to their employee’s depending upon which state they are based in.

Salary Packaging is a great way to save money on tax for both the employee and the employer.

See what you can save, contact us on (03) 8677 0677.

Save hundred’s in Taxation

February 1, 2018 JBS Salary Packaging Salary Packaging No comments

Times are tough and if there was a way we can save money on the amount of tax we pay, life would be a lot easier.

There are no tricks; the government allows employers to provide salary packaging for their employees. In return the employees promote their employer as an employer of choice.

Salary packaging allows you to pay some of your existing costs like, mobile phones, portable devices, motor vehicles, insurances etc, before you pay any tax on your income. Allowing you the benefit of having more money in your pocket each pay.

Last week we helped a JBS team member to Salary Package his partner’s motor vehicle and running costs, plus his mobile phone and a laptop that he just purchased. This gave him an effective pay rise of $3,815.00 per year.

Salary packaging is simply increasing your take home pay by salary packaging items you would normally pay for. These can include item like mobile phones, internet, laptops, smart devices, personal insurance, tools of trade, motor vehicle payments and therefore reduces the amount of tax that is paid on your income. (The savings vary depending on your expenses and your income).

Salary Packaging will give you extra $$$ each pay which will assist your family with everyday living and your employer will be an employer of choice.

Click here to watch a short video on Salary Packaging and how this could benefit you.

Contact JBS Salary Packaging to get your personal tailored Salary Package Report which shows you how salary packaging can save you $000’s in taxation and give you more money in your pocket.

Novated vs Associate Lease?

November 6, 2017 JBS Salary Packaging Salary Packaging, Uncategorized No comments

We often get clients ask us which type of lease is better, a Novated Lease or an Associate Lease? The simple answer to that question is “it depends”. It depends on your financial and personal situation.

A perfect example just occurred recently when I had to run through this exercise with a potential client. He was interested in both an associate lease and Novated Lease, but more importantly he wanted to know which one would be more beneficial to him. After running through both options with him he was amazed at how a model such as an associate lease will suit him better compared to a novated lease.

The easiest way to explain the differences between an associate lease and novated lease is as follows;

An associate lease is an agreement which is taken out between the employee and their associate with the approval of the Employer (Your Partner or family members over the age of 18).

The Associate rents their vehicle to the person who is salary packaging. The objective is to get the benefits of Salary Packaging and the associate get the opportunity to write off the vehicle against their tax by claiming the depreciation of the vehicle and if there is a loan they also get to claim the interest. (Associate Lease works well if the Associate earns under $35,000 per year due to the tax benefits that are available.) We recommend that you check with your accountant before proceeding.

The way I had it explained to me is:

– An Associate Lease essentially means you are your own bank. (You finance the vehicle through your own assets. I.e. redraw on your home loan), or you may already own the vehicle or pay cash for it.

– A Novated lease on the other hand is financed via a third party (bank or financial institution).

So if you have the facility to finance your own vehicle in your associates name then an associate lease will be the right way to go. If this cannot be achieved then the Novation is better for you.

If you have a vehicle without a loan, then the Associate may possibly be better option for you. If you plan on buying a new car then in most cases the Novated Lease will be better for you. Both options could be beneficial for you depending on your personal circumstances. At JBS Salary Packaging, we will provide you with the best possible outcome that puts more money in your pocket that is for sure.

Benefits for the employer

It makes sense that all employers take advantage of Salary Packaging as they too benefit as the GST paid by the employees is passed to them in a way of the employer claiming this against their BAS Statements, assisting in reducing the employer’s tax liability as well.

Remember to always discuss your options with one of the team at JBS Salary Packaging to ensure it’s the right decision for you and seek professional advice!

Changes in the blink of an eye

September 6, 2016 JBS Salary Packaging General, Mobile, Salary Packaging No comments

Each year trends appear in the technology industry with new improvements happening almost daily but as you can salary package a portable device such as an iPad, tablet or laptop annually without any Fringe benefits Tax (FBT) you can afford to keep up to date. Some of the new features are fads and will fade as quickly as they arrived however some features will become standard across the board on laptops and other computer devices but how do you know what is a keeper and what you won’t need in your next purchase?

tablet There is generally an annual tech show that occurs in January each year in Australia and they also show around the world. At these conventions, computer producers try to one-up each other with the latest and greatest. We’ll discuss a few of the new and improved features available on current laptop, computer, handheld devices, etc.

Having a convertible design seems to be the ‘top of the charts’ must have – giving you flexibility to have a laptop for your desk at work and converting to a convenient and small tablet while on your flight to Sydney. Many suppliers are now integrating convertible functionality into their designs but are not skimping on capability or power to do so.

New connections are big each year, with the introduction of UBS-C in 2016. The idea of new connection ports is to fasten up the transfer rate (data and power) and again improve performance. These may become the norm relatively soon, with Macbook, Dell, HP and Lenovo all including it in their 2016 releases so just watch out for this one.

OLED – have you heard of it yet? It’s all about screen resolution and it’s been in some of our mobile phones for a little while now (Samsung Galaxy series) but only now are we starting to see it in laptops and TVs. So what is it? OLED, or organic light-emitting diodes, works by putting electricity through certain materials that glow specific colours. You effectively get a clearer and sharper colour but also as individual pixels shut down if there’s no colour, you get a blacker black, providing a significantly better watching experience. The application of OLED is endless and allows for a thinner screen and can even be made flexible. This is definitely one to watch out.

Intel, the main guys that produce PC chips, has again upgraded their processors to a new generation. Officially called Intel 6th Generation Core series (Code-named Skylake), these new CPUs are not only quite a bit faster than the one in your three-year-old laptop, but also promise significantly longer battery life.

Like every other year, there’s been significant technology change so it might be time for an upgrade. With the benefit of a FBT free purchase, maybe you should give us a call to see if you can get yourself a new laptop for a nice price while saving on tax. If you’re considering an iPad or other hand held device, you could even look at bundling it with your mobile phone – why not save tax on all your everyday items. Give us a call and we can see what other things can be packaged for you.

Car Review | Commodore V8 – SSV – Redline

March 16, 2016 JBS Salary Packaging Car reviews, Cars, Salary Packaging No comments

Last of an Australian Icon – Commodore V8 – SSV – Redline!

This is your last chance to drive or buy a rear wheel drive Aussie V8 with Ford ceasing production later this year and Holden at the end of 2017!

Holden has left the best V8 fittingly to their last version of the Commodore V8! The power output, standard safety features and creature comforts sets a new bench mark for Australian built vehicles.

If you are interested in purchasing a new vehicle please contact our team today.

I hope you enjoy the video as much as I enjoyed making it for you all to watch.

Thank you for watching ; and happy and safe motoring to you all

My lease is about to end

January 15, 2016 JBS Salary Packaging Salary Packaging No comments

What do I do? Don’t worry! JBS Salary Packaging (JBSSP) can help.

Generally there are three options at the of a lease:
1.    Pay out the residual and you own the vehicle outright
2.    Refinance the residual
3.    Trade in the vehicle and get a brand new one Car Lease

When you commenced your lease, you would have chosen a residual – 15%, 20%, 25%, etc. When your lease term ends, you have the option to pay out the rest of the debt to then own the vehicle. For example; You buy a $60,000 car on a lease with a 20% residual so at the end of the term, if you wanted to pay out the residual, you need to pay a lump sum of $12,000.

Alternatively, you could take out a further lease for a couple of years and package the remaining $12,000. This means that you keep your car and things really remain unchanged other than a bit of paperwork to get it organised.

Or you can start looking for your next shiny new addition to your family. You trade in the vehicle (with the idea that the trade in would cover your residual) and you start a new lease with a new vehicle. This seems to be the most attractive offer to many as everyone loves a new car and if you’re used to salary packaging, you are happy for it to continue.

JBSSP can help by discussing the options and outcomes with you so you can make an informed decision on the best option for you and your family. Why not give us a call to find out your options.

Anyone for a Laptop, IPad, Surface, Tablet or Phone

November 6, 2015 JBS Salary Packaging Salary Packaging, Tech No comments

Salary packaging and the tax benefits it brings are based on fringe benefits tax exemptions. Exciting news of late is that these tax exemptions have been extended. Recent changes to the laws mean that from 1 April 2016, small businesses can provide their employees with multiple work-related portable devices, even where the devices have substantially the same functionality. Previous laws restricted this to one device per employee per FBT year. Multiple devices were only allowed where the functions of each device was substantially different from each other.

The ‘substantially identical function’ test will still apply for other eligible work related items such as computer software, protective clothing, other tools of the trade. This law change is particular to portable devices.

What does this mean for you? There are a few qualifying criteria, like your employer being a “small business” as defined by specific rules and the item still has to be work-related, so if you’re a garbage man or lolly-pop lady maybe you won’t qualify. But, if you’re in a line of work where devices are required or expected, you can now get multiple devices, like an iPad and a laptop. So, who’s up for a laptop, surface, iPad, tablet, smart phone and whatever else you can find?

To discuss further contact the team at JBS Salary Packaging