Can you salary package a laptop?
A laptop, notebook computer or similar portable computer (eg. tablet device) can be included in your salary package and is exempt from Fringe Benefits Tax if used primarily for work purposes. Pre-loaded work related software forming part of the computer may also be included in your package.
How does salary sacrifice work laptop?
Salary sacrifice can work one of two ways: You buy the notebook outright and your employer pays you back over a specified period, or; Your employer purchases the notebook for you and as a result your pre-tax wages are reduced to cover the cost until it is paid back.
Is salary packaging really worth it?
While salary sacrificing can work for some people, it won’t be worth it for others. Salary sacrificing is usually most effective for middle to high-income earners, while there are little to no tax savings for people who are already in a low tax bracket.
What is maximum salary packaging?
Salary packaging the maximum amount allowed each Fringe Benefits Tax (FBT) year means you’re making the most of this employee benefit. The maximum for employees of not-for-profit organisations is $15,900 (this is also known as your ‘tax free cap’) and $9,010 for hospital and healthcare employees.
Who is eligible for salary sacrifice?
To be eligible for salary packaging, you need to be permanent full time, permanent part-time or temporary employees a contract of at least three months duration.
What are the negatives of salary packaging?
Some disadvantages of salary packaging are:
- Developing the list of items that can be salary packaged and communicating this to staff.
- Negotiation of the breakup of the salary package when an employee leaves, especially if there are wages or payments outstanding.
How does salary packaging save money?
Salary packaging lowers your taxable income and increases your take-home pay, giving you more money in your pocket to spend on the things you want. Here’s an example of your salary before and after salary packaging. The benefits available to you, are determined by your employer.
Who can do salary packaging?
Is salary sacrifice a good idea?
In short, salary sacrifice pension schemes are can be a good, tax-efficient use of your earnings to fund a more comfortable retirement. That’s because aside from any profit from investment decisions, your pension will grow by more than the additional contribution you put in from your salary sacrifice.
How much are you allowed to salary sacrifice?
How much can I salary sacrifice? The annual cap for before-tax super contributions is $27,500 p.a. in 2021/22. This includes the regular super contributions made by your employer (usually 10%), any salary sacrifice contributions and any personal contributions where you intend to claim a tax deduction.
How much does salary packaging save on laptop?
Salary packaging will save John $840, reducing the actual cost of the laptop from $2,000 to $1,160. Contact us on 1300 664 323 to find out how you can salary package a laptop, iPad or similar electronic device.
How does salary sacrifing for a laptop work?
How it works. Salary sacrifing is an agreement between an employee and employer whereby the employee can purchase a notebook (laptop) computer for considerable saving. It works by the employer covering the cost of the notebook and the employee forgoing part of their future salary in exchange for the notebook.
How much does it cost to buy a laptop for an employee?
For most this will mean a discount of between 17% and 47% on the purchase price. An employee earning $60,000 per annum (47% income tax rate) wishes to purchase a laptop costing $3,000 including GST. If the purchase was made in the traditional way, the employee would need to earn $5,172 before the deduction of income tax to pay for it.