SALARY SACRIFICE YOUR RENT OR MORTGAGE BECAUSE YOU LIVE IN GOONDIWINDI AND BECAUSE YOU CAN... This is a fabulous strategy for anyone living in regional areas such as Goondiwindi, Warwick, Roma and the like. Here's the deal:
SAL SAC YOUR RENT:
Anyone can salary sacrifice 50% of their rent regardless of occupation which can lead to huge savings. The employer simply pays half the rent pre tax and you pay the other half post tax. It's also an exempt benefit item so no FBT is payable by the boss! Win-Win.
SAL SAC YOUR INTEREST REPAYMENTS ON YOUR MORTGAGE: This is possible but doesn't really save a tonne of tax unless you're a high income earner and you have a big mortgage as FBT is payable by the employer. This means that your employer (or you if you own the company and pay your own salary) needs to gross up which really diminishes your big tax savings. If you have an average income and an average mortgage, the benefits are minimal and probably not worth it unless you're earning good money. We can always do the calc's though as every dollar kept in your pocket and not the ATO's is a win in my books!
EMPLOYER PROVIDED HOUSING: This is super cool and if you're a boss (employer) and have the ability to provide housing to a staff member whether you're on a farm or not, this rent (let's say $200 per week) can be deducted from your employees pre tax dollars and it is 100% exempt from FBT! This is awesome as you've essentially just given your employee an annual tax deduction of $10,400 every year (based on $200 per week rent) and it's not cost you a dollar except a couple of minutes extra for your payroll chick to set up the transaction. Basically they just got a great pay rise because you've been cleaver with your finances and structured your assets effectively!
I am often asked by many big business owners here in town how to attract talented professionals... Well this is it folks!! I've said it before and I'll bang on about it over and over again - it's housing! Have you seen the price of housing in Brisbane... Here's my advice (general in nature don't forget!), Employers your investment properties in town or even buy some, provide them to professional staff or any staff really and allow them to salary sacrifice 100% of their rent without any FBT implications for you! Housing is the answer to attracting talent in Gundy... Let's say they pay $450 per week in rent, that's kind of like a $23k tax deduction which is a great tax saving every single year, year or year. Over a few years, they could have saved an extra $30k in tax and spent it in our town.
Bonus - If you're an employer across the river in NSW this strategy is particularly beneficial as it goes to reducing your payroll tax liability too. For big business, this could be HUGE SAVINGS! Anyway, I'm way off track with the employer thing...
THE FEES: The ongoing administration fees are just $257.40 per annum - small change when you consider the massive savings available to both employers and employees.
WANT TO KNOW MORE: We need Goondiwindi to be on the front foot when it comes to taking advantage of strategies like this - it's simply crazy not too. It's not hard to set up, yes there is some advice involved but there really isn't that much work in it.
To make it easy for everyone, I'm rolling out my first of many TAXCHIC TOOLBOX SESSIONS in Gundy to provide an overview of all your options. I've already arranged for Adam McGilchrist from Salary Packaging Australia who will help me facilitate the packaging arrangements to attend week commencing 1st May and together we'll speak to the community about the real savings possible. It will be an event not be to missed and Adam a country kid too so he really gets and understand the strategy!
THERE IS SO MUCH MORE: And housing is just the tip of the iceberg! There is so much more that can be salary packaged such as relocation, stamp duty, commission of sale of a property if you move for a job plus all the other standard stuff you're accustomed to hearing about like leased vehicles etc.
Thanks and acknowledgement to Julia Telford for the reminder to re-share this stuff! Isn't she great. I love this outside the box advice that typical Accountants aren't paying attention to and often take for granted as I love love love delivering these solutions to clients. I'm already rolling this exact strategy out to two Gundy based employers today at noon and again at 1pm so super excited for our little town to get board.
I am honestly surprised that no one knows about it out here and thrilled to be helping families and big business keep more of their cash in their own back pockets!
Be on the look out for my first TAXCHIC TOOLBOX session to be held in Term 2 when school goes back. Details coming soon.
And if you hung in all the way to the end of this ridiculously long but educational post which had way too much complex jargon, well done and give yourself a high five - it was pretty out of control wasn't it! I know, I'm working on it.. lol.