Does Salary Sacrificing effect borrowing capacity?

Hi Chris,
its part and parcel of their employment conditions, so I guess its somehow part of their Award. I just know it because some of my clients are nurses.
 
When salary sacrificing your employer should provide you with all the details of how it affects your entitlements such as the rate of pay for overtime, taking leave and terminations. Where these conditions provided to you when signing up for sal sac? Be particularly wary if you are terminating employment as it could affect for your final entitlements - not good if you have a long period of employment and lots of accrued leave to be paid out.

These conditions will vary depending on the employer's treatment of sal sac. If your gross income is the post salary sacrifice amount on your payslip ask your HR people if they can change so that, for example, super is shown as a deduction but taken out pre-tax. These options are available on most pay systems, but it will depend on your employer's policy.

If sacrificing to super also be aware of the tax when your contributions hit the super fund and also on exit from the super fund.

Cathy
 
Originally posted by chris1
How is this possible for those occupations and not for others??
(I have just resigned from the nurses union after not working in nursing for the last year!! Doh!)
I never knew that

Mrs Chris1 & Rolf

Employees in public hospitals were originally entitled to a $17,000 FBT exemption due to these hospitals holding Public Benevolent Institution (PBI) status.

It now appears these employees are guaranteed access to this exemption regardless of whether their employer meets PBI requirements:

http://www.ato.gov.au/nonprofit/content.asp?doc=/content/30726.htm

I work in the public health system and enjoy the benefits of salary sacrificing a portion of the (ordinarily non-deductible) mortgage payments on my PPOR. :)

Cheers

ocelad
 
Employees of certain institutions, charities and nursing homes(?) and others that satisfy certain criteria, are eligible to sacrifice up to a grossed up value of $30000 into mortgages etc, FBT-free - which equates to somewhere between 15-16K I think - providing they don't go above the 30% of gross income.
 
Originally posted by Apocalypse
Employees of certain institutions, charities and nursing homes(?) and others that satisfy certain criteria, are eligible to sacrifice up to a grossed up value of $30000 into mortgages etc, FBT-free - which equates to somewhere between 15-16K I think - providing they don't go above the 30% of gross income.
OK for the nurses and other underpaid staff. But do much higher paid medical specialists get the same tax advantage?
 
Originally posted by geoffw
OK for the nurses and other underpaid staff. But do much higher paid medical specialists get the same tax advantage?

I'm not 100% sure, but I think so. I guess in higher brackets the "tax saving" is more significant - but the same "grossed up" limitations would apply. There was a big stink a couple years back I recall - medical practitioners within the public system could literally sacrifice their entire wage, or at least a good portion of it - the government shut the loophole and replaced it with a broader, more equitable system. **I think**.
 
First time on the forum and am really impressed with the breadth of issues and level of debate/interaction. In my package at work, there is a vehicle included (Vehicle is valued in the package @ ~17k ). I am in the process of trying to maximise my finances for serviceability as I am looking to buy another IP and whilst I think this is the best solution for me versus buying my own personal vehicle, just wanting to confirm the following;

Do banks have a generic formula they apply to a given value of vehicle for the purposes of serviceability. ie $30k vehicle costs $x and for every $5k increase another $x impact on serviceability

James
 
Hi Buzz

Large
Medium to Large
Medium
Small to Medium
Small

Standard operating costs which vary from lender to lender are estimated and included as expense.

No good saying 'one owner, only drives to Church on Sundays', own a car (any car) and the lender will estimate the running costs.

There is no easy answer. A liability is a liability.

However, a paid for vehicle is an asset on your Statement of Position and contributes to the 'Income to Asset Ratio' assessment.

Damned if you do, damned if you don't.

Seriously, if you are considering taking another loan for property purposes and can defer the new car until after the property loans are settled, do that. It will make your life and the application for the new loan much simpler.

Cheers

Kristine
 
Hi Buzz

Generally, if your car is a FMV provided by employer AND you dont have anither vehicel then quite a few leders will allow a net income equivalent of 3 to 5 k.

Its in this area that an independent mortgage broker can help you heaps

ta

rolf
 
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