salary sacrificing

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salary sacrificing
Topic Started: Aug 2 2008, 07:38 AM (128 Views)
Jacaranda	Aug 2 2008, 07:38 AM Post #1
Gracious Rose In Fearless Flurry Posts: 1,617 Group: Guest Member #238 Joined: October 14, 2005	A few jobs I have been looking at mentioned salary sacrificing. From what I can gather, this looks to be quite a good thing, but is anyone able to explain it a bit more in simple terms? Is it really such a good deal?



BIX	Aug 2 2008, 11:15 AM Post #2
Boner-fide Bonza Bloke Posts: 5,547 Group: Sapphire Member Member #189 Joined: September 14, 2005 Residency Status: PR Current Residence (State or County): Australia	Yes it is good Griff as the salary part that is sacrificed is tax free. So let's think of an example. Under normal circumstances basic pay 1000 is taxable. But if you can do salaray sacrificing it becomes..... Basic pay 1000 Mortgage 200 salaray sacrificed Balance 800 taxable I think there are tax rules as to what can be salary sacrificed and also individual companies have their rules. All companies do not offer it.



Jacaranda	Aug 2 2008, 09:50 PM Post #3
Gracious Rose In Fearless Flurry Posts: 1,617 Group: Guest Member #238 Joined: October 14, 2005	thanks Bix, that does seem like a really good idea. Quite a few of the nursing jobs I had looked at offered salary sacrificing as part of the package. Could save a few wee baw bees doing that :D



Nicky	Aug 6 2008, 09:37 PM Post #4
Emerald (Special Member) Posts: 1,850 Group: Emerald Member Member #254 Joined: November 7, 2005 Residency Status: citizen Current Residence (State or County): NE Victoria (bordering NSW)	Not all salary sacrifice is tax free some attracts a lower rate of tax. Our car is salary sacrificed and it attracts a fringe benefits tax which is still saving us a fortune. I can salary sacrifice for lots of things but as most are over several years you have to be sure to be staying in the job for that time which makes it more difficult for me on a temp contract. Nicky



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