Is it worth salaray packaging in this case?

[Bluechip]

Hi,

This is probably a silly question....but I'll ask anyway...

I have my income tax greatly reduced using an ITWV due to negative gearing and also have some salary packaging at work.

If I purchase another IP and apply to have my tax lowered again, it will come back at zero % tax withholding.

I also have the possibilty of further salary packaging (by packaging FBT exempt items) but I don't think there would be any advantage would there if my new tax rate is zero % ???

Cheers

 

[WillG]

I think you have answered your question.

If you have little or no taxable income there is no point salary sacrificing

 

[BV]

Bluechip,
Yeah you answered your own question
you can't get any more juice out of that orange...
You must have some big losses though...
Cheers

 

[trajik]

I don't completely agree with the above. Tax losses carry forward indefinitely, and so can be offset in the future against capital gains.

For example if your taxable income each year is -$10,000, and after 5 years you make a $100,000 capital gain, after the 50% discount it is $50,000, which is then reduced by your $50,000 carried forward loss to nil taxable income.

There is definitely no benefit though, if your taxable income is brought to within 0 - $11,000, as the unused tax free threshold can't be carried forward.

 

[Mry]

I would certainly salary sacrifice FBT exempt items if they were items I wanted or needed and were going to buy anyway. But if your PAYG variation comes to a very low level, you may need say food, shelter and clothing more than a new laptop.