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» Laptops, Mobiles and PDA's
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What is FBT? – FBT stands for Fringe Benefits Tax. If an employer
provides you with any sort of remuneration or benefit other than cash
salary, they may be providing you with a Fringe Benefit. As such, your
employer may incur a Fringe Benefit’s Tax liability. In some cases (such
as private vehicle usage) your employer may elect to charge this to your
package as a cost of employment.| 0 - 15,000 | 26% |
| 15,000 - 25,000 | 20% |
| 25,000 - 40,000 | 11% |
| 40,000 » | 7% |
$30,000 x 11% = $3,300 FRINGE BENEFIT VALUE (1)
This value is grossed-up to account for income tax and GST using a predetermined factor of
2.1292 GROSS UP FACTOR (2)
Therefore,
$3,300 x 2.1292 = $7,026.36 GROSSED UP FRINGE BENEFIT (3)
Multiply by the FBT Tax rate
48.5% FBT TAX RATE (4)
Therefore,
$7,026.36 x 48.5% = $3,407.78 FRINGE BENEFITS TAX (5)
How can I reduce or eliminate the FBT? – Every dollar paid in after-tax contributions toward the operating cost of the vehicle effectively reduces the Fringe Benefit Value by one dollar. Using that rationale in the above example, an after tax employee contribution of $3,300 would effectively eliminate the entire fringe benefits tax liability for the above vehicle.
This only remains true if the value of the vehicle or the total km travelled do not impact on the Fringe Benefit Value.
What are employee contributions or recipient contributions? – Employee contributions are the after tax contributions made by the employee toward the operating cost of the vehicle. boost salary can coordinate with your Payroll department to ensure the appropriate deductions (both pre & post tax) are made from your salary so as to maximise your tax benefit.
How do employee contributions benefit me?
| Employee Contributions | No Employee Contribution | Without Packaging | |
| Total Cash Salary | $90,000 | $90,000 | $90,000 |
| Novated Lease | $13,292 | $16,592 | $0 |
| FBT | $0 | $3,748 | $0 |
| Net Cash Salary | $76,708 | $69,660 | $90,000 |
| Income Tax | $20,722 | $17,657 | $26,505 |
| Employee Contribution | $3,630 | $0 | $18,251 |
| Disposable Income | $52,356 | $52,003 | $45,244 |
| Saving | $7,112 | $6,759 | $0 |
What reports will I receive to help me manage my boostDrive novated lease? – You will be provided with quarterly detailed reporting to provide you with accurate and up to date information on your vehicle packaging costs. This report will show you how your vehicle is tracking with actual operating costs against budget and your FBT status.
Can I transfer my lease to a new employer? – Yes the boostDrive novated lease is very flexible and you can easily re-novate the lease to your new employer. Please contact customerservice@boostsalary.com.au to make the necessary arrangements for your new employer. Note: Some fees may be applicable.
What should I do if I need to terminate the lease? - If you do need to early terminate your lease then boostDrive will assist you in evaluating the most beneficial option for you and calculate any financial payout requirements.
Who is entitled to a novated lease? – All full-time employees of Australian companies and registered organisations are entitled to lease a vehicle under a novated lease arrangement. This is subject to the following; a) approval from your employer and, b) acceptable credit assessment.
Can I package my fuel expenditure? – Yes this is one of the major benefits of a boostDrive novated lease as many employees enjoy the benefit of paying for fuel with pre-tax salary, no GST and the boostDrive fuel discount as well !
What is included in the monthly payment? – You will be provided with a salary package quotation that details all the inclusions and your monthly commitment; under our boostDrive program you can include all your vehicle finance, registration, insurance, servicing, tyres and operating costs.
How much does it cost each month? – This will be dependant on vehicle type, finance amount, lease length, kilometres travelled and services included. Your boostDrive Packaging Consultant will be able to provide you with the necessary information for you to make a decision and tailor a boostDrive lease to suit your needs now and into the future.
What period can I take a novated lease over? – With boostDrive you can take your novated lease over periods from 1, 2, 3, 4, or 5 years. Subject to your annual kilometres it may be better to have a shorter term than a longer one. Your boostDrive Packaging Consultant can provide you with all the options to assist you in making your choice.
What are the finance terms and conditions? – These are provided to you with the finance lease agreement that you sign when commencing a boostDrive novated lease, contact us at customerservice@boostsalary.com.au for more information.
Can I choose where to purchase my vehicle? – Yes you can but we recommend that you do your research first and do not sign up to any deal until you have spoken to boostDrive and obtained the best possible discounts through our vast supplier network.
Why should I choose a boostDrive novated lease from boost salary for my novated lease? The decision to salary package a vehicle is one that you need to ensure that you understand fully, boost salary are a novated lease specialist organisation dedicated to ensuring our customers receive the optimum result in a salary package. Our experience in the industry is extensive, our supplier network comprehensive and our service levels are outstanding, our customers are our best reference and they keep coming back again to us because of the service. Try it yourself call boost salary it’s refreshing to experience good service!
Contact us @ customerservice@boostsalry.com.au or telephone us on 02 8875 7955
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Laptops, Mobiles and PDA's
Over what periods can I salary package a notebook computer or handheld
PC / mobile phone? – A laptop can be taken through the boostPC
program for any period from 1 month up to 12 months.Can I salary package more than one laptop? – Under current legislation you are capped at a maximum of one item per annum.
What software can I package? – You are able to package any software that is to be used primarily for business use. Any other software must be purchased using after-tax dollars.
Can I spend any $ amount I want on a laptop? - Obviously you need to be aware of the financial commitment into which you are entering. Under the boostPC program you can salary package a notebook computer as low as $1,000 (plus GST) or a handheld device (PDA or mobile phone) for as little as $500.
What products can I choose from? – At boost salary we have pre-negotiated three levels of notebook computer packages for your convenience and benefit. We offer a Budget, Standard & Superior package designed to provide a high quality of equipment at a competitive price with the ease of purchasing at corporate discount levels. Please refer to our “HOT DEALS” section.
Of course as with all boost salary programs flexibility is paramount. As such you reserve the option of purchasing your own laptop, mobile or pda. Just let us know the details and requirements and the boost salary team will do the rest.
Can I package a used or refurbished notebook computers or mobile phones? – No, unfortunately all equipment must be new when packaged.
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Salary Packaging Superannuation
Do I have a choice of super fund provider? – boostSuper can coordinate
the payment of additional super funds to any approved superannuation account
in Australia, including approved self managed super funds. With regard
to choosing a fund for your regular super contributions, go www.superchoice.gov.auCan boostSuper provide me with advice on the best superannuation funds available? – No. Advice on superannuation investments and funds can only be provided by registered licensed financial advisers. As such, boostSuper recommends you obtain advice from an independent financial adviser with any questions you may have. boostSuper cannot and does not provide any financial or investment advice.
How do I package superannuation? – You advise your employer of the amount that you wish to salary package into your appointed super fund, they will advise boostSuper, you complete the necessary authority declarations and we will arrange the rest, its as simple as that.
Does the government’s co-contribution’s apply for superannuation salary packaging? – You may well be able to benefit from the government’s co-contribution policy (which is based on income level). Please discuss with your accountant or financial adviser with regard to your eligibility.
How does boostSuper pay my super fund provider? – We establish a regular monthly contribution payment made on your behalf directly to your fund provider; the amount is deducted from your salary by your employer and administered by boostSuper into the fund of your choice. You can view the amounts paid into your super fund via the regular statements provided by your super fund.
Can I change the super fund that I am packaging into? – Yes this can be changed but boostSuper and your employer have limited this to a maximum change of twice per financial year.
Can I get further information? – Yes, further information is available through your employer, the government website www.superchoice.gov.au or through your own independent financial advisor.
Note: boost salary Packaging Pty Ltd makes no recommendations for superannuation and does not provide investment advice. At all times we recommend employees obtain their own financial advice before investing.
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