Poised to enter employmment in aged care. This is the best explanation I have found on salary packaging. Very clear and concise explanation. Thank you!
I will be starting in a not-for-profit organization in 2 weeks and they spoke to me about this already. Sounds amazing! This video was really easy to understand how it all works. Thank you
This was great, I’m starting a new role for a not-for-profit next month and have never dealt with salary packaging before and this video was the best one I found on TH-cam to explain it. Very thorough and concise!
Hey Melinda, I am glad you found it helpful! One thing I didn't mention in the video, which I should have, is just be aware that if you have a HELP debt or receive a centrelink payment, this may be impacted by the salary packaging because it affects your adjusted taxable income
Probably only thing worth mentioning is that the salary packaged amount is added at double the rate at tax time when it comes to calculating assessable items like hecs/help or childcare benefit subsidies. In higher income situations this has less of an impact but in a part time employment or lower income setting you can find for example that your employer doesn’t pay a Hecs contribution throughout the year because your taxable income is below the threshold, and then at tax time your $9k salary packaged becomes $18k of extra income for hecs assessment, leaving you with a very hefty tax bill. I love salary packaging and agree with everything said in the video, would only add that if you’re newly in a role that offers it you should have a chat with a tax agent to get an idea of what unforeseen tax implications it might have for you.
I didn't know about salary packaging! But really interesting to learn how the big difference with the salary packaging offered to not-for-profit employees as opposed to standard organisations! Great video!
Are these benefits only available to NFP’s that are charities or that accept donations? I keep getting told our NFP isn’t eligible, but they’re never certain…
I got an offer from an NFP and your video cleared a lot of my questions RE: salary packaging. Does the novated lease comes into the salary packaging as well? I loved the table comparison. thanks buddy!
Awesome video very informative and accurate. NSW Health employees get to salary package up to $9000 however the NGO I work for at the moment is up to $15900. Comes in handy.
Something to consider before working for such an organisation! Salary sacrifice in the UK is essentially the same thing but never really knew much about it :D nice explanation mate!
Hi Brad! Thanks for creating this video, it's succint and the visuals help it understand a lot better. I was wondering if you can create another video if FBT is involved? I guess I'm trying to find out if the salary packaging is worth it if you would be incurring Friege Benefits Tax? Thank you in advance!
Salary packaging sounds like an awesome benefit for employees in Australia. We don't have that in the U.S. but we have similar benefits like FSA and HSA for healthcare-related expenses. 👍
That video helped me a lot as I have just became a NFP. I will talk with the company tomorrow. The only thing I could not understand was the period from March to April… for example if I want to salary sacrifice for rent the maximum amount which where I work is 15k the payment will be made weekly … so what that time of the year means?
Thanks for talking about salary packaging. But could you please talk about impacts of HECs debts and family Tax benefits/CCS. As I have been warned off using my salary sacrafice because this could effect my payments etc. What is you opinion on this? Also I heard that different states have different benefits. For example. VIC have much better salary sacrifice compared to NSW.
Hey Jacinta, you raise a good point and yes it can impact HECs and certain government payments. This is because they are calculated based on adjusted taxable income which includes reportable fringe benefits. However, for most people I would still suggest that salary packaging is going to be beneficial despite this but obviously it depends on your specific circumstances. With regard to different amounts in different states - im not aware of this. As it is a federal arrangement with the ATO I would be surprised if one state is favoured over another but I could be wrong on that...
@@GuidedInvestor Yeah im not sure why the states are different but i do live in a border town of NSW and VIC and it is something to do with our hospital in NSW takes larger percentage of your sacrifice then our VIC hospital (both facilities are under the same public health service but paid by the state you work in). I work in NSW. Out of interest i have looked into salary sacrifice but have been scared off by my TAX agent because of HECs effects and family circumstances. I was going to look into it again once i have paid off my HECs. Cause I think it would only marginally effect my CCS. But need to look into it further. Thanks for your reply 🙂
@@GuidedInvestor Mr. Longsword has been lost to the annals of time. I'm simply appreciating the great financial advice, and the strapping lad on the screen. Catch up soon
Hi, I work in NFP aged care. If I want to save as much tax as possible and optimise my after tax income to pay for my mortgage, should I get the Meals and Entertainment? (I don't spend so much eating out).
Thanks, glad you liked it 😊 you can make additional repayments towards your hecs debt through the ATO, just log in through your MyGov and you should see the details in there. But not sure voluntary repayments would be the best use of your money....I did a video about this previously which might help you
@@onlynonsense8723 have you notified your employer you have a hecs debt? If so, they should be taking out the mandatory repayments. If not, when you lodge your tax return you will get a bill from the ATO for the amount you owe. Unfortunately you will need to pay this yourself but can setup a repayment plan with the ATO. If you know its coming, hold off on lodging your tax return until the last minute and then save, save, save
Hey Adrian, yeah there are fees involved and they will vary depending on which company you use. Typically they are quite small and shouldn't discourage you from salary packaging but definitely worth considering!
I love salary packaging. It goes straight onto the mortgage. I am finishing my studies this year though so I'll be moving into full-time work and will continue salary packaging but, because I'll be earning more, this will then impact my HELP repayment. Would be great if you could go into that in another video, perhaps! I think it's worth it to pay down my HELP debt faster, but my husband and I are also heavily paying down our mortgage and plan to buy another property in a few years time, so it is hard to figure out whether continuing to salary package when I'm on a higher income is still worth it due to my HELP debt.
Definately keep up the salary packaging into your mortgage, its a great bonus if you have access to it. I did a video previously on paying down HELP debts which you might find interesting 😊 thanks for watching!
What does it mean 30.000 cap for fringe benefits for non for profit organisations. I thought that can be salary packaging to 30.000 per year? Iss that true?
It will mean that you are likely to get a tax bill for additional HECS payments at the end of the year as your HECS payments are based on adjusted taxable income which includes salary packaging however, provided you are aware of this, and plan for it, then often it is still beneficial to salary package
Interesting content. I've just started working for a couple of hours per week as a supoort worker (casual), would I be eligible for salary packaging as well? I don't know much about it yet. Thanks, Brad
You say it's a no brainer, but my brain is struggling to calculate the impact on my child care subsidy and family tax benefits. If anyone has an online calculator to simplify these calculations I'd appreciate it.
Your example Mark, could simply salary sacrifice his $9.000 into his superannuation and get virtually the same result, and bypass the middleman, the salary packaging organisation and have a savings benefit for the future.
It's not the same result because the $9,000 would be taxed by his super fund at the super rate of 15%. But I do agree that salary sacrifice is a great idea and the best scenario is that Mark do both...
Poised to enter employmment in aged care. This is the best explanation I have found on salary packaging. Very clear and concise explanation. Thank you!
My pleasure, good luck with your new role!
I will be starting in a not-for-profit organization in 2 weeks and they spoke to me about this already. Sounds amazing!
This video was really easy to understand how it all works. Thank you
Thanks I appreciate that. Good luck with your new gig!
Paying no fringe benefits costs sounds like a great advantage!! Thanks for sharing the information with us!!✨
Yeah it is, FBT sucks! Thanks for watching
This was great, I’m starting a new role for a not-for-profit next month and have never dealt with salary packaging before and this video was the best one I found on TH-cam to explain it. Very thorough and concise!
Hey Melinda, I am glad you found it helpful! One thing I didn't mention in the video, which I should have, is just be aware that if you have a HELP debt or receive a centrelink payment, this may be impacted by the salary packaging because it affects your adjusted taxable income
@@GuidedInvestor thanks so much for pointing that out, fortunately I have accounted for my HELP debt though so I’m all over it!!!
Thanks for sharing this great information!! I'm not in Australia but I appreciate all the work you put together here and brought up to us!!🙌
Thanks mate, appreciate you watching
Another awesome video my friend. Totally great content! Keep pushing and working hard!!!! Love it! Thanks for sharing :) 😁
Thank you! About to move to Aus in a NFP role and was very confused till I watched this!
Great advice as always Brad.
Thanks mate 👍
OMG! You have certainly shed a lot of light on the subject! Thank you :-)
Thanks 😊
Probably only thing worth mentioning is that the salary packaged amount is added at double the rate at tax time when it comes to calculating assessable items like hecs/help or childcare benefit subsidies. In higher income situations this has less of an impact but in a part time employment or lower income setting you can find for example that your employer doesn’t pay a Hecs contribution throughout the year because your taxable income is below the threshold, and then at tax time your $9k salary packaged becomes $18k of extra income for hecs assessment, leaving you with a very hefty tax bill.
I love salary packaging and agree with everything said in the video, would only add that if you’re newly in a role that offers it you should have a chat with a tax agent to get an idea of what unforeseen tax implications it might have for you.
Great suggestions! This is such an important topic to be discussing. I really enjoyed the video!
thanks for talking about this topic, definitely something to know before working at a NFP organization
I didn't know about salary packaging! But really interesting to learn how the big difference with the salary packaging offered to not-for-profit employees as opposed to standard organisations! Great video!
Thank you for the information. Very helpful
Glad it helped 👍
Wow i really like this! Anytime you can find something thats tax advantaged it's a plus. Thanks for sharing Brad
Paying less tax is a risk-free way to improve wealth 👍
Would love to know why teachers aren't included as NFP
Yeah good point 🤔
Guided Investor because I want some of those cards with loaded money on 😜😜😜
Yeah I would too if I were you haha
Are these benefits only available to NFP’s that are charities or that accept donations? I keep getting told our NFP isn’t eligible, but they’re never certain…
I got an offer from an NFP and your video cleared a lot of my questions RE: salary packaging. Does the novated lease comes into the salary packaging as well?
I loved the table comparison. thanks buddy!
Awesome video very informative and accurate. NSW Health employees get to salary package up to $9000 however the NGO I work for at the moment is up to $15900. Comes in handy.
That extra tax free income will come in handy!
Super helpful! Thank you
Glad it helped 😊
Something to consider before working for such an organisation! Salary sacrifice in the UK is essentially the same thing but never really knew much about it :D nice explanation mate!
Hi Brad! Thanks for creating this video, it's succint and the visuals help it understand a lot better. I was wondering if you can create another video if FBT is involved? I guess I'm trying to find out if the salary packaging is worth it if you would be incurring Friege Benefits Tax?
Thank you in advance!
Salary packaging sounds like an awesome benefit for employees in Australia. We don't have that in the U.S. but we have similar benefits like FSA and HSA for healthcare-related expenses. 👍
That video helped me a lot as I have just became a NFP. I will talk with the company tomorrow.
The only thing I could not understand was the period from March to April… for example if I want to salary sacrifice for rent the maximum amount which where I work is 15k the payment will be made weekly … so what that time of the year means?
Thanks for talking about salary packaging. But could you please talk about impacts of HECs debts and family Tax benefits/CCS. As I have been warned off using my salary sacrafice because this could effect my payments etc. What is you opinion on this? Also I heard that different states have different benefits. For example. VIC have much better salary sacrifice compared to NSW.
Hey Jacinta, you raise a good point and yes it can impact HECs and certain government payments. This is because they are calculated based on adjusted taxable income which includes reportable fringe benefits. However, for most people I would still suggest that salary packaging is going to be beneficial despite this but obviously it depends on your specific circumstances.
With regard to different amounts in different states - im not aware of this. As it is a federal arrangement with the ATO I would be surprised if one state is favoured over another but I could be wrong on that...
@@GuidedInvestor Yeah im not sure why the states are different but i do live in a border town of NSW and VIC and it is something to do with our hospital in NSW takes larger percentage of your sacrifice then our VIC hospital (both facilities are under the same public health service but paid by the state you work in). I work in NSW.
Out of interest i have looked into salary sacrifice but have been scared off by my TAX agent because of HECs effects and family circumstances. I was going to look into it again once i have paid off my HECs. Cause I think it would only marginally effect my CCS. But need to look into it further. Thanks for your reply 🙂
Came for the hypnotic blue eyes... Stayed for the great advice.
😂 you've been hanging out with that broady longsword fellow again havent you?
@@GuidedInvestor Mr. Longsword has been lost to the annals of time. I'm simply appreciating the great financial advice, and the strapping lad on the screen. Catch up soon
thanks for sharing!
My pleasure 😊
Can we salary package our car loan?
I have a question, will they be sending you the payment for your mortgage or will the company you work for paying on your behalf?
Haven't heard about salary packaging so this was interesting (I'm from Canada). Thanks for sharing!
Hi, I work in NFP aged care. If I want to save as much tax as possible and optimise my after tax income to pay for my mortgage, should I get the Meals and Entertainment? (I don't spend so much eating out).
Amazing video and hopefully I understood correctly. Could I use my total remuneration package to repay hecs or even some of it?
Thanks, glad you liked it 😊 you can make additional repayments towards your hecs debt through the ATO, just log in through your MyGov and you should see the details in there. But not sure voluntary repayments would be the best use of your money....I did a video about this previously which might help you
Thanks for the reply. If I pass the thresh hold and have to repay the hecs, lets say $5000, could I use my remuneration package to pay that each year?
@@onlynonsense8723 have you notified your employer you have a hecs debt? If so, they should be taking out the mandatory repayments. If not, when you lodge your tax return you will get a bill from the ATO for the amount you owe. Unfortunately you will need to pay this yourself but can setup a repayment plan with the ATO. If you know its coming, hold off on lodging your tax return until the last minute and then save, save, save
@@GuidedInvestor haha okay thanks for the advice mate :D appreciate it
How about the fees charged by the salary packaging provider, do these have an impact on the benefit
Hey Adrian, yeah there are fees involved and they will vary depending on which company you use. Typically they are quite small and shouldn't discourage you from salary packaging but definitely worth considering!
Anyone can salary sacrifice super? does that cost the business in FBT?
No FBT on salary sacrifice to super 😊
Grear advice man!👍
Thanks mate
I love salary packaging. It goes straight onto the mortgage. I am finishing my studies this year though so I'll be moving into full-time work and will continue salary packaging but, because I'll be earning more, this will then impact my HELP repayment. Would be great if you could go into that in another video, perhaps! I think it's worth it to pay down my HELP debt faster, but my husband and I are also heavily paying down our mortgage and plan to buy another property in a few years time, so it is hard to figure out whether continuing to salary package when I'm on a higher income is still worth it due to my HELP debt.
Definately keep up the salary packaging into your mortgage, its a great bonus if you have access to it. I did a video previously on paying down HELP debts which you might find interesting 😊 thanks for watching!
Can we get double benefits if we work for two different nfp organizations,
What does it mean 30.000 cap for fringe benefits for
non for profit organisations. I thought that can be salary packaging to 30.000 per year? Iss that true?
I've heard people say it's not worth salary packaging if you're still paying off HECS debt?
It will mean that you are likely to get a tax bill for additional HECS payments at the end of the year as your HECS payments are based on adjusted taxable income which includes salary packaging however, provided you are aware of this, and plan for it, then often it is still beneficial to salary package
In this example, the salary packaging is limited to $9010. What if I just use 8000? will the rest of 1010 back to my bank account?
Great share!! Hope to see you soon at my place! I put out a new vid today! Brad
Interesting content. I've just started working for a couple of hours per week as a supoort worker (casual), would I be eligible for salary packaging as well? I don't know much about it yet. Thanks, Brad
Hey mate, best to ask your payroll if any of these benefits apply to you and if so let's set it up!
It is only applied to permanent staff. I was a casual employee, and After becoming permanent staff, they offered me this benefit
how much should i sacrifice for a 100k salary, is there a limit that makes no sense?
most nice
You have great content my new friend. Just subbed +1
You say it's a no brainer, but my brain is struggling to calculate the impact on my child care subsidy and family tax benefits. If anyone has an online calculator to simplify these calculations I'd appreciate it.
The makes me want to get an NFP job
😂 you have the best youtube name I have seen
@@GuidedInvestor I do what I can for the people
Me too!
Your example Mark, could simply salary sacrifice his $9.000 into his superannuation and get virtually the same result, and bypass the middleman, the salary packaging organisation and have a savings benefit for the future.
It's not the same result because the $9,000 would be taxed by his super fund at the super rate of 15%.
But I do agree that salary sacrifice is a great idea and the best scenario is that Mark do both...
Yes that’s true about the 15% tax, but at least it’s minimal.
Thank You for responding.
Work is important for me than Salary .