PDA

View Full Version : How to buy my Macbook?



iapplepie
9th October 2007, 08:31 PM
Im going to buy a 2.16 white macbook and i have 2 options planed on how to purchase the laptop.

-Education discount>>Salary sacrifice which results in minus GST (ends at 1550)

Or...
-Refurbished (ends at 1550)

They equal about the same, but should i just get a refurb and avoid paperwork? Is refurb that much worse than new?

Cheers

april_candice
9th October 2007, 08:39 PM
i'd go edu, as least then its brand spankers, and paperwork isnt that hard.

decryption
9th October 2007, 08:42 PM
Paperwork? There's no paperwork - just make sure you have a valid student/staff ID :)

mikinoz
9th October 2007, 08:44 PM
A. You do not understand salary sacrifice, it is not GST exempt, it is purchase through pre-tax income hence lowering your taxable amount in your return,

B. You can salary sacrifice a refurbished if you so chose to, and save more.

PM me if you are needing more clarification on how all of this works...

Huy
9th October 2007, 08:46 PM
Get it via EDU. Easy :)

Dante Kyar
9th October 2007, 08:49 PM
i second (or third i've lost count) the EDU way of getting it. If you dont have the proper methods of buying it, find a friend who does or even that friends child.

morgan
9th October 2007, 08:50 PM
Yes but if it is for work purposes you can simply claim it as a tax deduction at the end of the year, so salary sacrifice isn't really the issue. And if I can remember back to Income tax law last semester; when you salary sacrifice your work is buying the computer for you so they claim an input tax credit, so you don't pay GST. If in doubt consult a Chartered Accountant (CPA's don't know what they're doing :)

oscar04
9th October 2007, 08:58 PM
A. You do not understand salary sacrifice, it is not GST exempt, it is purchase through pre-tax income hence lowering your taxable amount in your return,

B. You can salary sacrifice a refurbished if you so chose to, and save more.

PM me if you are needing more clarification on how all of this works...

The purchase isn't GST free but your employer reimburses the GST component (at least my employer does). So you save by paying out of your pre-tax salary plus get the GST component back.

Edit: can anyone confirm that if you buy a refurbished machine you can/can not salary sacrifice?

iapplepie
9th October 2007, 09:00 PM
so am i correct in assuming that ss is without gst? OR the employer reimburses you with the money spent on gst if your company offers it? i read a post on here that said that most companies give you ss minus gst

Thanks for the quick responses

micaros
9th October 2007, 09:10 PM
With Salary Sacrifice, you don't pay the GST (10%) but that isn't the primary benefit (as I see it anyway).

The purchase price of the laptop (excluding GST) is taken out of your wage before you are taxed, so you've saving at least 30% (if your marginal tax rate is 30%) on top of the GST saving. That well and truly out does the Education discount AFAIK.

(Edit: whoops, kinda doubled up there on other posts, took way too long to write this post as I got distracted)

iapplepie
9th October 2007, 09:14 PM
Thanks for all the posts i think i understand this now and im gonna go for a new one, with edu and ss

Cheers

mikinoz
9th October 2007, 09:15 PM
The purchase isn't GST free but your employer reimburses the GST component (at least my employer does). So you save by paying out of your pre-tax salary plus get the GST component back.

Edit: can anyone confirm that if you buy a refurbished machine you can/can not salary sacrifice?

Buy any refurbished or superseded machine and you will be provided with an invoice that you can claim as a salary sacrifice.

MidnightMan
9th October 2007, 09:17 PM
Yes but if it is for work purposes you can simply claim it as a tax deduction at the end of the year, so salary sacrifice isn't really the issue. And if I can remember back to Income tax law last semester; when you salary sacrifice your work is buying the computer for you so they claim an input tax credit, so you don't pay GST. If in doubt consult a Chartered Accountant (CPA's don't know what they're doing :)

The only good advice in the above quote is to see an accountant if you are unsure how it all works, although with the fees they may charge maybe its not worth it.

Anyhow, the point with salary sacrifice is that laptops/notebook computers are exempt from fringe benefits tax, so they can be purchased using pre-tax dollars without your employer having to pay FBT on it. The employee is effectively not paying income tax on the income used to purchase the laptop/notebook.

The employer is not paying for the laptop for the employee, the employee is paying for it - but simply out of pre-tax dollars. The employer is still actually paying wages - they are just paying the wages in the form of a laptop/notebook, rather than in the form of cash.

The additional advantage is that if there is a connection between the use of the notebook/laptop and the earning of assessable income, then the computer can also be depreciated (to the extent that it is used to produce assessable income). So, if it used 100% for producing assessable income, then you can essentially get a double deduction, once from the salary sacrifice (by being able to pay for it out of pre tax dollars), and secondly from the depreciation, although the deduction for depreciation of the laptop will be over its useful life, not wholly in the year of purchasing it.

And before somebody queries it, there is nothing in Division 40 of the tax act that says that you can't claim depreciation on an item with a limited useful life if you have already salary sacrificed it.

With the GST side - whether you get the GST input tax credits back from your employer or not depends on how generous your employer is. As far as I am aware, there are no hard and fast rules on this - but I am willing to be corrected on that matter.

There are many ways of going about the process of salary sacrificing a laptop. When I did it, I purchased mine in the usual way (ie going into the shop and buying it on my credit card), then my employer re-imbursed me the full amount (including GST). I had to give them the tax invoice of course. Then I got no salary for the next however fortnights (I can't remember how many) until it was paid off. After that, I got my salary in the usual way. So instead of getting pay slips for a total of $5,000 gross (ie. before tax is taken out) and having the net salary paid to my bank account, I got no cash salary at all. Instead I was paid the laptop, which I had already received.

The person I quoted above should be careful when saying derogatory things about CPA's. I am not a CPA so I don't care, but I know plenty of them who do know what they are talking about.

iapplepie
9th October 2007, 09:20 PM
Well i think that clears thinks up thanks midnightman

micaros
9th October 2007, 09:31 PM
Thanks for all the posts i think i understand this now and im gonna go for a new one, with edu and ss

Cheers

Not sure, but I think you'll be lucky to combine the two (ie purchase at edu price and salary sacrifice the purchase).

Although it can work many ways (such as you buy, they re-imburse), as I understand it the basic premise is that the employer is buying something for you in lieu of your salary (unless your employer gets edu prices).

That said, it may work.

Redman
9th October 2007, 09:43 PM
There was a thread not long ago here (http://forums.mactalk.com.au/showthread.php?t=36884) about purchase options etc.....