Feeling nervous

Hello MissMel, I am not really up to date or experienced in salary sacrifice like this. Although enough has been sacrificed over the years.

But I thought I would check in and see if you have settled down a bit.

 

This depends on your work. If you work in hospital, ambulance, not for profit etc there is some reduced FBT for these type of items.ie Can salary sacrifice up to $17,667 of non-exempt grossed up benefits depending on your employer.
So the approx $9000 of salary packaged towards your mortgage would be tax free and you would pay $9000 of mortgage from pre-tax rather than post tax $.
This depends on your workplace and you should speak to your HR department to see what you are entitled to. They will likely refer you on to Salary Packaging organisation for further details.
So best to start with your employer’s HR department.
Also check with your accountant RE your personal circumstances.
Good luck!

 

They are not really the same thing. PAYG withholding is just getting your tax refund early - spread out over the year instead of a lump sum when your tax return is processed.

Salary sac can mean you pay less tax overall.

I technically work for 2 charities, one fully exempt (a PBI) and one rebateable. I can fully package about 16k under the first one, which makes that income tax free.

I'm not sure if the OP works for a charity, but it can be quite beneficial.

 

Dear MM,
something to find out about is :
if you do get a flatmate or rent out a room, what kind of legal rental agreement will you have with the person?
Make absolutely sure you have a written signed and witnessed agreement.
I think it is called a 'license'?
Also make sure they have insurance for their contents etc.
I do hope this helps.

 

I don’t work for a charity. Thanks for the insight!

 

Thanks- all good points.