Prospective tax benefits as an Anglican College employee?

[daicos]

l'm looking to purchase an investment property here in Melbourne. As an employee of a church organisation, l have been advised that there are pre-tax opportunities. The school where l am employed have referred me directly to a packaging specialist with whom "they deal with frequently." I havent yet contacted these persons in the hope that you guys and gals could give me a bit of the inside word based on your knowledge and perhaps even experience. Cheers

 

[westminster]

I'm guessing they are referring to salary sacrificing opportunities but you don't specify what is eligible for salary sacrifice - at some place it's car/novated lease, laptops, childcare, school fees

 

[turk]

Whatever the benefits now be aware that these may disappear under Gillards attack on Middle Class Welfare should she be reelected.

 

[dan c]

Whatever the benefits now be aware that these may disappear under Gillards attack on Middle Class Welfare should she be reelected.

No, they have nothing to do with middle class welfare. The benefits the school is referring to is salary packaging, because the school, as a PBI, is exempt from FBT.

Generally, PBI's allow you to salary sacrifice a lot of things, but there is a limit of $17,000 per year.

 

[tobe]

charities get allowances from the government to allow salary sacrifice. It means they can attract employees who might usually want more dosh. On your group certificate it will show part of your salary as FBT, rather than all gross.

to the employee it just means they arent having to get paid (after tax) less than if they worked in the for profit sector.

Salary package companies are comapanies that look after the salary sacrifice components of peoples salary. You can choose which one you use, and some might charge you a fee for 'packaging', some employers do it themselves.

the packaging company simply directs part of your salary to either;
your mortgage
your rent
a credit card you use for buying lunches and stuff
your car loan
etc
google salary packaging companies and get a few quotes on who you might like to use.
be careful when you are applying for loans, not all brokers and bankers know how to handle salary sacrifice, and not all lenders 'gross up' the salary sacrifice amounts to give you an accurate borrowing capacity.

 

[turk]

No, they have nothing to do with middle class welfare. The benefits the school is referring to is salary packaging, because the school, as a PBI, is exempt from FBT.

Generally, PBI's allow you to salary sacrifice a lot of things, but there is a limit of $17,000 per year.

Think that you will find that Gillards net will cast wider than many expect.

"This could include changes to some family payments, reductions to generous concessional tax arrangements for self-funded superannuation contributions, a further tightening of the private health insurance rebate based on income, a reduction of the current 50 per cent capital gains tax discount, and a clamp-down on loopholes such as the exemption from fringe benefits tax for employees of churches and charities."
Read more: http://www.smh.com.au/opinion/polit...eaks-on-tax-20130129-2dizl.html#ixzz2JWs41Sl6

 

[skater]

Whatever the benefits now be aware that these may disappear under Gillards attack on Middle Class Welfare should she be reelected.

Hasn't the Gillard government been instrumental in increasing the middle class welfare?

 

[turk]

Hasn't the Gillard government been instrumental in increasing the middle class welfare?

They started cutting in the last budget.

 

[dan c]

Think that you will find that Gillards net will cast wider than many expect.

"This could include changes to some family payments, reductions to generous concessional tax arrangements for self-funded superannuation contributions, a further tightening of the private health insurance rebate based on income, a reduction of the current 50 per cent capital gains tax discount, and a clamp-down on loopholes such as the exemption from fringe benefits tax for employees of churches and charities."

The most important word there is 'could'. I doubt they'd cut this, as it would make it so much harder for public hospitals and non-profit organisations to find competent staff.

But maybe they will. Who knows.

 

[dan c]

Hasn't the Gillard government been instrumental in increasing the middle class welfare?

They have made cuts to things like Family Tax Benefit Part A and B for families earning over $150,000, Health Insurance Rebate, for individuals and couples over a certain threshold.

Most of the un-means tested middle class welfare, like child care rebate, health insurance rebate, FTB, was introduced by the Howard govt.

The school kids bonus was introduced by Rudd, then changed by Gillard. Abbott has said today he will scrap this handout.

 

[turk]

The most important word there is 'could'. I doubt they'd cut this, as it would make it so much harder for public hospitals and non-profit organisations to find competent staff.

But maybe they will. Who knows.

As I stated in my original post " be aware that these may disappear"

Gillard and Swan would know and leaks/hints to the media would be used to soften up the electorate.

 

[daicos]

Thank you!

You guys are amazing. Turk, Westminster, Dan C, Tobe, Skater, I really appreciate your feedback. Thanks so very much.

 

[dan c]

As I stated in my original post " be aware that these may disappear"

Gillard and Swan would know and leaks/hints to the media would be used to soften up the electorate.

True. With everything else that could be cut, and more 'Labor friendly' things, I just can't see it happening.

But I have been wrong before. (Once or twice)

 

[turk]

True. With everything else that could be cut, and more 'Labor friendly' things, I just can't see it happening.

But I have been wrong before. (Once or twice)

Perhaps the Governments financial position is worse than you are willing to imagine.

 

[skater]

The school kids bonus was introduced by Rudd, then changed by Gillard. Abbott has said today he will scrap this handout.

Damn, that's the only one I like!

One of my PM's is very good at getting tenants to use this when they fall into arrears. The January payment often comes straight to me after they've spent their rent at Christmas.

 

[Hoffy]

One of my PM's is very good at getting tenants to use this when they fall into arrears. The January payment often comes straight to me after they've spent their rent at Christmas.

Hence the reason it will be dumped.

 

[Ed Barton]

No, they have nothing to do with middle class welfare. The benefits the school is referring to is salary packaging, because the school, as a PBI, is exempt from FBT.

Generally, PBI's allow you to salary sacrifice a lot of things, but there is a limit of $17,000 per year.

Be aware that the salary sacrificed amount is 'grossed up' (using the highest tax rate) and added back to accessible income for all the 'extras' in the tax and benefit system. The grossed up max is 30k.

So your 'income' for purposes of HECS repayments, family handouts, levies, surcharges and child maintenance etc will be based on the 'adjusted income' figure.

Also, if your employer is paying the interest on your IP loan (through your salary sacrifice) then you will not be able to claim it as deduction on your tax return. You are much better off using the SS to pay otherwise non deductible expenses like PPOR repayments, phone, Internet and utility bills, credit card payments, personal loan repayments, etc.

 

[GaryT]

Do you really think that people earning over $150K should be getting handouts from the government?

Read Joe Hockey's "Age of Entitlement" speech to get an indication of the possible future treasurer's views.

We really need to get over this expectation that the government has to fund basic living costs for those that can afford to pay. You only need to look at what has happened in Europe where the over generous welfare systems have caused such huge problems where government handouts have created unrealistic expectations.

 

[HotRod]

Damn, that's the only one I like!

One of my PM's is very good at getting tenants to use this when they fall into arrears. The January payment often comes straight to me after they've spent their rent at Christmas.

Which is the very reason it should be scrapped.

It's just another "plasma TV" giveaway, this time on an annual basis.

 

[Rob G.]

Do you really think that people earning over $150K should be getting handouts from the government?

Read Joe Hockey's "Age of Entitlement" speech to get an indication of the possible future treasurer's views.

We really need to get over this expectation that the government has to fund basic living costs for those that can afford to pay. You only need to look at what has happened in Europe where the over generous welfare systems have caused such huge problems where government handouts have created unrealistic expectations.

You missed the point.

The government is not funding this particular taxpayer ... rather it is returning tax that has been overpaid in the first place.

If the tax rates/thresholds were adjusted better then much of this 'handing back where it is not deserved' nonsense will disappear.

Cheers,

Rob