What is Salary Sacrifice?
Salary packaging allows you to receive your salary as a combination of cash and benefits. Because you pay for the benefits from your Pre-Tax income you can reduce the amount of income tax you pay and increase the amount you take home each fortnight.
Salary packaging is permitted under the Income Tax and Fringe Benefits Tax Assessment Acts. The benefits available include Laptop Computers, which have been designated as Fringe Benefit Tax exempt.
Your own personal circumstances will determine whether salary packaging superannuation will be of benefit to you. Some of these items attract Fringe Benefits Tax, so it is important to review your situation with a financial adviser.
What is the FBT year?
Even though you can usually commence salary packaging at any time during the year the term FBT Year refers to the period that commences on 1st April and finishes on the 31st of March. The FBT Year is used for the purpose of calculating and reporting on FBT each year.
What about equipment depreciation?
The ATO Taxation Determination TD93/145 (Adobe Acrobat Format Document) explains that depreciation can be claimed on a salary packaged laptop computer / organizer. However it is important to point out that when equipment is being financed through an operational leasing mechanism, then depreciation can not be applied to the goods.
How does it save me money?
Savings are derived due to the fact that some of your gross income is diverted to the payment of the Laptop Computer; effectively lowering your taxable income ie you pay less tax. While savings can be a high as 50%, the amount you personally will save will depend on items such as:
-Your gross wage.
-The cost of the Laptop Computer.
-The payment method ie. Cash or Finance.
Salary Sacrificing is also Interest Free. If you wish to organise a Salary Sacrifice for one of our machines, simply talk to your employer about organising a Salary Sacrifice with P4laptops.com.au.