Fringe benefit question

[bluestherapy]

Hi,

First time post. I hope it's not an inappropriate question. If so, feel free to delete it.

My question relates to fringe benefits, and potential ramifications. I'm hoping that there may be some accountants or similarly financial savvy types who can help.

I'm currently employed as a Counsellor earning a paltry, $48,600 P/A (so happy I went to Uni for 3 years for that ) No benefits like car/laptop/salary sacrifice.

I'm considering a potential new offer of employment with what looks like better pay, however, I'm confused. Here's what's on offer:

The pay on offer is for a package is $49,700 with the opportunity to salary sacrifice up to $400 per fortnight. The provision of a car is valued at $15,000 and a contribution for private use of $75 per fortnight is deducted fortnightly. Superannuation is paid at 9%.

I have a $20,000 HECS debt, and being a single father get about $210 per fortnight from Centrelink. I'm not sure what effect (if any) the car and salary sacrifice will have on those two.

Can someone point me in the right direction?

Thanks so much,
Alex

 

[Stan 101]

Call an accountant, brother.

First consult is usually free.


cheers,

 

[Julia]

Hi,
The pay on offer is for a package is $49,700 with the opportunity to salary sacrifice up to $400 per fortnight. The provision of a car is valued at $15,000 and a contribution for private use of $75 per fortnight is deducted fortnightly. Superannuation is paid at 9%.


Alex

Alex, I agree with Stan: consult an accountant.
I'd just suggest you don't underestimate the value of a company car.
Consider what you will save bynot having to own, register and run your own vehicle.
If something goes wrong with a company car you just drive it to the service agent and tell them to fix it and send the bill to your head office etc.

Don't feel you can't negotiate. The deduction of $75 p/f seems a bit tough.
How about suggesting that be dropped and if they balk at that, offer to pay your own petrol for mileage over weekends.

The usual deal with a company car is that reasonable personal use is thrown in. It's all deductible for the employer.
Good luck.

 

[bluestherapy]

Thanks so much for your ideas. Off to the accountant I go!

Take care,
Alex