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Salary Packaging

Discussion in 'General Motorcycling Discussion' started by Tenoq, Sep 28, 2005.

  1. Anyone managed to salary package a motorcycle? I know a lot of places will let you do a car, but not a bike - but I wasn't sure if there was a legal reason for this at all?

    I've mentioned it my employer and financial consultant, but they aren't too sure on the details either. So any info would help, please! :)
  2. I have my salary packaged in a plain brown envelope. Just make sure nobody's looking when you slide it across the bar.
  3. Tenoq - don't know directly, but your best bet is to call your Fleet Management Company and see if they do it for bikes. If they don't lease bikes through Fleet Management deals then you can't do it, AFAIK.
  4. that would be awesome tenoq :D
  5. Can't see why not. You can salary package anything.

    I don't think a lease company would touch a bike, however, for uncertainty of resale value.
  6. Yes yes yes!!!

    My employer graciously allowed us to salary package bikes until about a week ago when they decided they weren't getting enough for the deal. Luckily, about 14 of us got in and novated bikes; everything from Harleys to a 749 (and the Triple, of course :p ).

    The lease includes all running costs and there is no minimum mileage as in cars. I can even buy more riding gear if I get ahead in payments :D .

    Mmmm...semi-free motorcycle!!!

    You need to check with your pay branch if they do this. If they do...woohoo. If they don't...sorry.
  7. Correct ibast, you can salary package anything, but you still have the benefit grossed up and all it amounts to is a 12 month interest free loan. Depending on your salary it may even be a disadvantage.
    The beauties of salary sacrificing a novated lease are the lower rate of FBT assessed, input credit of GST and sacrifice of running costs.
    When we tried to have bikes on novated lease the lease company was open to it but our employer refused to play ball. They claim there is some problem with the FBT and so there would be no financial advantage in leasing a bike, particularly in light of the low mileage usually put on them in a year.
  8. Hmmm, wish mine did, but only do boring cars.

    Is that planned that way so you can catch up on sleep when your stuck in traffic?
  9. there are differant types if salary packaging , in the public sector we can salary package up to 30% of our wages or $8750 without get fringe benifet tax .
    we can do loans , eduction , school fees , entertainment expenses .
    I salary package my rent .

    the way we do it is the payement comes out of the gross pay BEFORE tax then you are taxed on the rest of your wages.

    mcmillian and shakespeare is the company that the public hospital system goes through.
  10. Not the public sector Glen... just Hospitals and some charities for the $8750 FBT exemption.

    My wife tried to novate a new K1200S - for me to ride :LOL: -, not possible. BMW Finance said they have done it but the company managing the salary sacrifice(like mcmillan shakespeare) wouldn't come at it :cry:

    The tax department said it was OK - but I think it just ended up in the too hard basket for the company...

  11. For the FBT exemption you need to have what they call PBI (public benevolent institution) status. Used to work for a company that has a salary packaging software product and associated service. They have a much better set up that McMillan Shakespeare....
  12. told you i was a charity tony :p :LOL:

    tax dept are cool with it , but cebtre link arent they add on more to it and count it at years end as income and the amount of tax you would have paid too added on .
  13. Charities, in fact, have a packaging limit of $15,454 before an FBT liability is incurred. In order to get this, the ATO must grant the organisation Public Benevolent Institution and Deductable Gift Recipient status. Don't expect this to last too much longer - the ATO has charities in its sights.

  14. ****mutters something about mongrels, bastards etc***** ohhhhhhh grrrrrrr Wails out loud "Why isn't it Meeeeeeeee?.

    Lucky bastard. :LOL: :LOL: :LOL: :LOL:
  15. scuse my ignorance, but if you're earning enuf to warrant salary sacrifice, why would centrelink have any say in it? :?
  16. Because

    a) you don't need to be earning much to make salary packaging worthwhile. Even if you're on the minimum wage full time wage ($25,168)and therefore eligible for a range of other Centrelink supports, you'll get a significant advantage if you salary package the first $15,454 because you only pay tax on the remaining $9,714. You'll have $24,554 in your pocket at the end of the year. By comparison, if you don't package, your spending power is $21,320.

    b) Centrelink have their fingers in all sorts of pies - Family Allowance, Child Support, Unemployment Benefit, Austudy, child care rebate. In many of their calculations, they use the "grossed up" figure (that is, they treat your $15,545 at though you'd actually earned $30,000) when assessing your eligibility for benefits or calculating how much child support your should pay. In some cases, the "grossing up" makes packaging disadvantageous.
  17. ok, gotcha, ta........
  18. 1. its not onlt the rich that can salary package but the poor / normal people too.
    I have to pay rent , so if i salary package it , i get something back out fortnight in a tax break.
    2. i have children , so we get family allowance.
    centre link still make you estimate your income and still check your wages at the end of the year.
  19. Why would they care? At the end of the lease, you have to either pay the residual, and keep the vehicle, or sell it, pay out the residual, and what's left, if any, is yours.

    Where I work, we don't lease bikes. But I'm enquiring. Our place was bought out by a company that has interests here but at another site. They used to have bikes as leases but I think they stopped it.

    With cars, you pay FBT based on how many kays you do. eg: 0-15000 km attract, say 30% FBT, over 15k but under 25k, 21%, etc. With a bike, I think that the FBT went up, based on a linear scale, depending on how many kays you did. So, you were better off not riding the thing. I understand that a few of the lads leased Harleys and put them in storage, only to make a mint on them at the end of the lease...

    However, with me, that wouldn't be the case....

    I'll find out more about this. The ATO allows it. But as others have said, it may be policy of your employer, or with the fleet management company that organises your leases.