Salary Packaging Gurus -   Experts in salary package consultancy & FBT compliance
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THE EFFECT OF THE FEDERAL ELECTION RESULT ON
Novated Leases - Over Exposed - And Over Rated ?
5 Alerts on non commercial basis car salary sacrificing
Living Away From Home Allowance for Mining Employees
Car Novated Lease Alert

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Associate Lease
associate lease advice
car FBT
LAFHA
Living Away From Home Allowance
Novated Lease
novated lease advice
novated lease v's associate lease
salary package
salary package advice
salary packaging a car
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THE EFFECT OF THE FEDERAL ELECTION RESULT ON

THE EFFECT OF THE FEDERAL ELECTION RESULT ON
SALARY PACKAGING FOR PBI's
 
Now that the result of the 2013 Federal election is known, the proposed abolition of the statutory formula car FBT election, by the prior Government, will now not occur, as the Coalition has clearly stated they will not abolish the statutory formula method, which does not require log books to be completed, nor does it require any car business use to apply.
 
PENDING FRINGE BENEFITS TAX AND OTHER TAX CHANGES
 
As the Medicare levy is rising to 2.

Novated Leases - Over Exposed - And Over Rated ?

TheSalary Packaging Gurusfully maintainedassociate lease, when in around 60% of the situations, the employee has a suitable associate, theSPG fully maintained associate leasewill usually produce a far superior salary package gain than anovated lease.
 
 Section 136 (1) of the FBTAA, states the " recipient " is " the person to whom the benefit is provided."
 
The ATO confirmed in the NTLG FBT Sub-Committee minutes, that under afully maintained associate leaseagreement, the car benefit is provided to both the employee and associate, both as recipients, which is quite obviously the case.

5 Alerts on non commercial basis car salary sacrificing

FIVE ALERTS ON NON COMMERCIAL BASIS CARSALARY SACRIFICING
 
 
The following scenarios have recently been referred to Bob Millikin, fromSalary Packaging Gurus, by employers, and tax agents, for his thoughts of the eligibility of their structures to be accepted by the ATO as being transacted on an arm’s length and on a commercial basis.
 
A)  $48,000 CAR - VASTLY EXCESSIVE 24 MONTHASSOCIATE LEASERENTALS - IMPLIED RESIDUAL VALUE WAY TOO LOW - INCORRECTLY STATED  LARGE SAVINGS IN RECIPIENTS AFTER TAX PAYMENTS

Living Away From Home Allowance for Mining Employees

 
Thousands of self drive in / drive out mining employees each owe Bob Millikin fromSalary Packaging Gurusa beer or two!
 
When the draft legislation for the Living Away From Home Allowance (LAFHA) changes was released in July 2012, only employees who were flown and driven to the worksite in employer provided transport, were exempted from the 12 month timeframe limit and own residence availability conditions.
 
This meant that the thousands of employees, typically in the mining industry, who drive their own cars long distances to and from the worksite, at the start and end of their (say) 7 days on, 7 days off shift would not have been eligible for the concessions.

Car Novated Lease Alert

Some Novated Lease salary package outsourcers are becoming extremely greedy.
 
They are charging exorbitent amounts of lease brokerage. They are also adding other items to the Novated Lease rentals to be paid for by the employee effecting the initial finance lease.
 
A recent scenario saw a $67,000 leased value car have a $8,000 Lease brokerage amount added. The vehicle also had over $4,000 in Gap and Lease Protection Insurance added by the outsourcer.
 
In addition, the Novated Lease outsourcer's insurance company quote was over $1,400 p.

Welcome to Salary Packaging Gurus

Welcome to Salary Packaging Gurus.
 
Please come back to our blog soon to keep updated on all things revolving around salary packaging (salary sacrificing), FBT, Novated Leases, Associate Leases, salary package advice and all other available fringe benefits.
 
Salary Packaging Gurus provide advice to employers and their employees on all aspects of salary packaging, FBT and all fringe benefits. We do not administer salary packaging programs, we are salary packaging consultants who offer independant advice.