Salary Sacrifice Questions

Discussion in 'Accounting & Tax' started by CTSB, 27th Oct, 2019.

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  1. CTSB

    CTSB Active Member

    Joined:
    28th Sep, 2017
    Posts:
    39
    Location:
    Melbourne
    Hi guys,

    Hoping a few of the guru's can help point me in the right direction regarding a few things regarding salary sacrificing and some of the pitfalls with leasing, chattel mortgages and split loans for cars. I've only ever owned cars outright.

    Current car is starting to hit a major depreciation point and I'm thinking of cashing it in.

    Also want some advise on further salary sacrificing, like addition super sacrificing, childcare etc.

    Current Salary:

    $142,000.00
    + $6,200 fuel card
    + $3,200 Etag (tolls allowance)

    Current car would sell for $30k, of which I'd rather keep this in cash and funnel into a new investment or my share portfolio rather than dumping in another car.

    Currently only paying the minimum in Super (9.5% ~ $13,490) ~ I know some regs have been changed in the last 24 months, is there now any advantage to paying pre or post PAYG tax?

    Currently paying $6,700 p.a in childcare.

    PPOR - $1.35m approx. ~ 50% LVR ~ IO 3.45%
    IP - $1.1m approx. ~ 60% LVR. ~ IO 3.84%

    Current understanding relating to NL and CM ~ Both destroy serviceability, however there may be an option for potentially getting a NL which doesn't including maintenance/running costs, as Fuel being a major portion of this is already being picked up by my employer, which may result in a better return on the NL?

    'Split Loaning' the cost of the car from IP equity at the higher interest rate, would mean most the running costs, servicing rego etc would be tax deductible?

    Currently, I get a marginal tax deduction on the car as it's used about 30%-40% during business hours for work related items.

    Thoughts on an the most effective tax solution? I'm going to go to my accountant, however, I like multiple opinions and like to be armed with some information before talking to him.

    Thanks.
     
    Last edited: 27th Oct, 2019
  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    11,997
    Location:
    Sydney
    You will be renting a vehicle you never own
    You will be impacted for loan servicing and the debt
    If you pay for fuel then a lender may calc the fuel into your servicing calcs. It is a outgoing. And lose the benefit of GST being claimed. (Minor)

    Your employer fleet manager should be able to provide calcs