15 December 15
TAKE ADVANTAGE OF THE END OF YEAR CAR SALES!
With the 2015 clearance prices and bonus offers available from almost all manufacturers, now is the best time to take advantage of the deals on new cars!
As part of your employee benefits you can combine this with a Novated Lease, and save more with tax and GST savings on your car and running costs!
Call us now on 1300 69 30 77, visit our website www.carleasingoptions.com.au or email us at email@example.com to find out how to make the most out of the End of Year Car Sales with Car Leasing Options.
10 June 15
Why Novated Leasing? - Not For Profit Organisations
Leigh Skelton is the Finance Manager of Ballarat and District Aboriginal Co-operative (BADAC),a Not For Profit Organisation delivering much needed health, social, welfare and community development programs to local Aboriginal people.
In their latest company newsletter, Leigh describes all the reasons why he loves his Novated Lease with Car Leasing Options.
Click here to read the excerpt.
If you are a Not For Profit Company and would like to know more about offering this service to your employees, contact us on 1300 69 30 77.
03 June 15
Federal Budget 2015 - Workers pushed into higher tax brackets
Hundreds of thousands of Australian workers will find themselves in higher tax brackets after [the] federal budget left tax brackets unchanged.
The failure to reset tax brackets will push the average full-time worker, earning $78,000 a year, into the second-highest tax bracket in 2015-16, with any earnings over $80,000 subject to a 37 per cent tax rate, 39 per cent including the Medicare levy. As a result, the average worker will be slugged an extra $1200 in tax a year, and the average income tax rate will rise from 21.7 per cent to 27.4 per cent over the next decade.
It's not a pretty picture.
The picture is even less pretty for the thousands of individuals who will pushed into the top tax bracket, which kicks in at $180,000… "This makes the top marginal rate 49 per cent, giving a 10 per cent hike in the marginal tax rate, so beyond $180,000 the employee loses almost half of every extra dollar earned…" notes HLB Mann Judd Sydney taxation services partner Peter Bembrick.
For families at the lower end of the pay scale, increased earnings can also mean the unwelcome end of government benefits, such as family tax benefits.
"It is important that people know their effective tax rate and not just their marginal tax rate to determine if how hard they are working is worthwhile, especially those in the lower brackets," says the managing director of BFG Financial Services, Suzanne Haddan.
Prescott Securities senior economist and financial adviser Alan Hutchinson says there are a number of options for taxpayers who are in danger of jumping into a higher tax bracket.
Cutting back on the hours worked is one option, although possibly not the best if there are mortgages and school fees to pay, he says. Another strategy is salary sacrificing into superannuation.
"Salary sacrificing is the main strategy available to people wanting to avoid bracket creep, and it is the one that works," says Hutchinson.
ipacSecurities head of technical services Colin Lewis says salary-packaging motor vehicles and laptops used for work-related purposes may be an option for some employees as a way of reducing assessable income.
Employees of public benevolent institutions such as public hospitals or not-for-profit organisations are still able to salary-package almost anything including living expenses, education costs, loan and mortgage repayments, rent, credit card payments and bills, he says.
*Source Bina Brown – Australian Financial Review
See the full report here.
14 May 14
2014 Federal Budget
FRINGE BENEFITS TAX AND SALARY PACKAGING
The FBT rate is being increased from 47% to 49% to align with the highest marginal tax rate inclusive of the Temporary Budget Repair Levy of 2%. Whilst the increased income tax rate will apply from 1 July 2014, the increased FBT rate will not apply until 1 April 2015. Further, whilst the Temporary Budget Repair Levy applies until 30 June 2017, the FBT rate is to drop again as of 1 April 2017.
Changing the FBT rate also changes the FBT gross-up rates, as follows:
||2014-15 FBT year
||2015-16 FBT year
||2016-17 FBT year
||2017-18 FBT year
|Type 1 gross-up
|Type 2 gross-up
The reason for increasing the FBT rate is stated to be "To prevent high income earners from utilising fringe benefits to avoid the levy". But you would need to salary package a lot of income to take advantage of this 2% differential. For instance, packaging $20,000 would only produce a saving of around $400.
So whilst there appears to be an opportunity in both the year ending 30 June 2015 and the year ending 30 June 2017, for high income earners to take fringe benefits in the period where the lower FBT rate applies, it would only be useful to the extent the employee earns above $180,000 and the minimal savings probably mean they are unlikely to bother.
In order to protect the value of fringe benefits provided in the not-for-profit sector, that otherwise diminishes with an FBT rate increase, the annual caps for concessional treatment are to be increased. Confirmation of the new amounts has not yet been provided.
The FBT rebate (currently 48%) is to be aligned with the FBT rate as of 1 April 2015.
Chief Executive Office
*Source Elizabeth Lucas - Grant Thornton Australia