The win-win of a salary sacrifice car

For Employees - Salary sacrifice your caryou are likely to be liable for FBT on a salary sacrifice
There are lots of benefits when you salary sacrifice acar).   A salary sacrifice car benefits an employee
car.  A salary sacrifice car means all the leaseby enabling them to pay for their car pre-tax, reducing
payments and running costs are paid from yourtheir taxable income.
pre-tax salary.  A salary sacrifice car arrangementThe requirements of a valid salary sacrifice car
with your employer may even reduce your taxablearrangement
income resulting in a bigger tax refund.  A furtherThe salary sacrifice car arrangement should be put
benefit of a salary sacrifice car is that the runninginto place before the employee has done the work.
costs of your salary sacrifice car are paid excludingMake sure the contract of employment includes details
GST.of all remuneration, including the salary sacrifice car
As an employee a salary sacrifice car is a benefitcomponent.
arranged through agreement with your employer. The sacrificed salary must not be accessed by the
(See also information below for employers regardingemployee for the period of the salary sacrifice car
for more information about a salary sacrifice car).arrangement – it must be permanently foregone.
360 Financial Services would be happy to discuss your
For Employers - The lure of the Salary Sacrifice Carnovated leasing and your salary sacrifice car needs.
Give your employees a payrise without paying for itThis article discusses the benefits of salary sacrifice
by allowing them a salary sacrifice car.car arrangements. It is not intended to be legal or
A salary sacrifice car program using novated leasing isfinancial advice.  You should seek specific advice
a great way to provide a benefit to your employeesfrom your financial adviser.
without it costing more in wages expense (although