For some background please see the following link:
http://www.bantacs.com.au/fbt_rental.php
The basic premise as I see it is that it is possible to salary sacrifice from the higher income earner all the "cash" expenses (not just 50%) of a jointly held IP without incurring FBT. Non-cash deductions such as depreciation ans so forth don't count. This can give much improved deductibility if the lower income earner has minimal income (eg stay at home), yet preserve the benefits this provides should CGT be incurred.
I am just wondering if anyone actually does this or has done it?
It may convey other benefit as well when considering eligibility for FTB or may reduce liability for other charges when things like negative gearing losses are added back on to calculate them...Medicare Levy Surcharge perhaps? On this basis alone it may be worthwhile even for a property held solely by the higher income owner?
http://www.bantacs.com.au/fbt_rental.php
The basic premise as I see it is that it is possible to salary sacrifice from the higher income earner all the "cash" expenses (not just 50%) of a jointly held IP without incurring FBT. Non-cash deductions such as depreciation ans so forth don't count. This can give much improved deductibility if the lower income earner has minimal income (eg stay at home), yet preserve the benefits this provides should CGT be incurred.
I am just wondering if anyone actually does this or has done it?
It may convey other benefit as well when considering eligibility for FTB or may reduce liability for other charges when things like negative gearing losses are added back on to calculate them...Medicare Levy Surcharge perhaps? On this basis alone it may be worthwhile even for a property held solely by the higher income owner?
