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forno
8th February 2008, 08:43 PM
So, started a new job and they do salary sacrifice on Laptops, but all the info I have read is for Dell laptops.

I want a MBP, not a Dell:rolleyes:

Before I get stuck into HR I was wondering if anyone else has been through this. I cant see why it would have to be with a certain company, surely its just an invoice to the ATO and the accountants at work??

purana
8th February 2008, 08:45 PM
It varies from employer to employer, so please speak to HR and confirm how they do it. Cause whatever we discuss might not be relevant with your employer.

And if you get in quick you could get a notebook now, and another in April :) since you can get 1 laptop per FBT year and well FBT year is nearly up for this period. Ends in March I believe and new one begins in April.

forno
8th February 2008, 08:56 PM
Cheers purana


Buy 2 sell 1 to pay for first one + a new lens:D

Oh BTW, what do you think the going $$ for my 1.5ghz 15" PB in absolutely mint condition is??

purana
8th February 2008, 09:02 PM
Cheers purana


Buy 2 sell 1 to pay for first one + a new lens:D

Oh BTW, what do you think the going $$ for my 1.5ghz 15" PB in absolutely mint condition is??

Don't talk about that too loudly, as the taxman might hear. As for your PowerBook I can't imagine alot. Dropped in value since the Intel machines keep getting revisions after jumping onto the scene.

lurka
8th February 2008, 10:12 PM
As an employer, I have a few employees asking me about SS,
Do you guys have any links to some good information I might be able to have a read through?

Galumay
8th February 2008, 10:26 PM
Lurka, i have done a lot of research on salary sacrifice in the past, the ATO actually has some very good resources if you do a search.

There are also 3rd party companies that will run the whole thing for you (at the employees cost) if you dont want to be involved in the administration of it. see here (http://www.accesspay.com.au/)

anarchron
8th February 2008, 10:32 PM
Do a search on Whirlpool. There are plenty of threads on Salary Sacrifice there.

lurka
8th February 2008, 10:37 PM
Galumay,
Cheers for the linky,
In your research what did you discover?
Was it beneficial for both parties?

raj
8th February 2008, 11:12 PM
Cheers purana
Buy 2 sell 1 to pay for first one + a new lens:D


Good way of getting yourself fired and done for fraud with the ATO. The large company I work for had 20+ people fired on the spot for doing that. I wouldn't suggest trying it out

sebasporto
8th February 2008, 11:18 PM
We do salary sacrifice at our company, I got all my Macs like that. I don't know if all companies work the same way but in our company the laptop is pay back in installments over a year.

For the employee is fantastic. So much cheaper because it is pay with before tax money. And because is pay in installments over they year you don't really feel the expense. The GST is also claimed by the company, so the employee doesn't pay for it.

For the employer is no big deal in term of administration, the only thing is that it is like give a zero interest loan to the employee for a year. Some employers might not be happy with that.

Sebastian

vwl
8th February 2008, 11:53 PM
Good way of getting yourself fired and done for fraud with the ATO. The large company I work for had 20+ people fired on the spot for doing that. I wouldn't suggest trying it out

Why? A taxpayer is entitled to salary package a laptop FBT free in each FBT year.

Galumay
9th February 2008, 06:19 AM
Good way of getting yourself fired and done for fraud with the ATO. The large company I work for had 20+ people fired on the spot for doing that. I wouldn't suggest trying it out

you must have misunderstood, the suggestion was that as it is approaching the end of the FBT year (March 31st), it would be possible to salary sacrifice one now and another in april ( the new FBT year).

this is totally legal, and there is no ruling about the amount of time you have to keep it before selling so it was an entirely legal suggestion to sell one of them and keep the other. there is no fraud.

Galumay
9th February 2008, 06:23 AM
Galumay,
Cheers for the linky,
In your research what did you discover?
Was it beneficial for both parties?


Lurka its definitely beneficial for the employee! buying a computer for effectively a possible 40-45% discount (if you are on the top marginal rate) has got to be good. You can also depreciate it which adds to the savings, and if you are really lucky you can buy a mac with the education pricing and save a bit more!

the benefit for the employer is really only that the arrangement attracts no FBT and the goodwill created by making participating employees happy!

Rasta
9th February 2008, 06:56 AM
you must have misunderstood, the suggestion was that as it is approaching the end of the FBT year (March 31st), it would be possible to salary sacrifice one now and another in april ( the new FBT year).

this is totally legal, and there is no ruling about the amount of time you have to keep it before selling so it was an entirely legal suggestion to sell one of them and keep the other. there is no fraud.

That's right... it's legal, the only thing it wouldn't be legal to do would be sell one and continue to claim depreciation on it...

Buying one in each packaging year is a cool perk that I love! :)

raj
9th February 2008, 07:59 AM
That's right... it's legal, the only thing it wouldn't be legal to do would be sell one and continue to claim depreciation on it...)

That's right, it's legal to buy ONE per financial year, not 2 at the same time

Rasta
9th February 2008, 08:11 AM
That's right, it's legal to buy ONE per financial year, not 2 at the same time

It's one per FBT year, which is 1 april to 31st march each year.. hence buy one in march, one in april... that's the legal bit...

Mark T
9th February 2008, 08:37 AM
I realise that most of the information posted here is all well-intentioned but I strongly suggest that any employer consult their professional tax/GST/FBT advisor before providing salary sacrifice to their employees.

BTW The limit of one benefit per FBT year is exactly that. The rule is only one laptop "benefit" per FBT year, not one laptop per FBT year.- you can buy two laptops now, salary sacrifice one before 31 March and the other after 31 March. But then again, don't take my word for it - go get some professional advice.

Redman
9th February 2008, 08:46 AM
There was a good thread here (http://forums.mactalk.com.au/showthread.php?t=36884) not so long ago

IIe2PB
9th February 2008, 08:50 AM
That's right, it's legal to buy ONE per financial year, not 2 at the same time

Actually it's one per FBT year. And, you have to be finished "sacrificing" the money within the financial year. IE if you buy one now, and haven't finished paying for it before the end of March it is deemed that that is your laptop for this and next FBT year.

I bought one a few weeks back and I've been riding the SS people to get it through before the end of march so I don't have to wait until April 09 to get another :)

coljac
9th February 2008, 09:17 AM
Actually, salary sacrifice has a benefit to the employer beyond any morale boost. If I buy a laptop for my company, I fork out the company cash then it is an asset which is depreciated over a few years, which means the money I spent on it is still taxable. The salary sacrificed laptop is just the same as employee salary and benefits, so it's just a dectable expense.

Of course, the laptop belongs to the employee eve if they quit, so it helps to have good morale too. :)

sedaai
9th February 2008, 09:36 AM
I have just purchased a Macbook ready for salary sacrifice with my employer.

Process goes a little like this;

1) Purchased laptop
2) Fill out paperwork and submit
3) Full amount paid is given back via EFT (usually via wages)
4) Amount of the laptop is deducted from my pre-tax salary over 26 fortnights (can reduce that if I like)

I did a few quick calculations before I did this and in my instance it's a fantastic thing!

As I already sacrifice into superannuation & electricity I actually bring home an additional $40 per f/n as it drops me into the lower tax bracket.

Can't complain in the slightest :)

woofy
9th February 2008, 04:12 PM
How do you sacrifice for electricity...its not on any ATO list I have ever seen...AFAIK, you can SS one laptop, a bag for it, a PDA, and A mobile phone, and also Super (although that gets taxed still at 15%). Anything else attracts FBT which is a whole mess again.

Galumay
9th February 2008, 07:40 PM
How do you sacrifice for electricity...its not on any ATO list I have ever seen...AFAIK, you can SS one laptop, a bag for it, a PDA, and A mobile phone, and also Super (although that gets taxed still at 15%). Anything else attracts FBT which is a whole mess again.

depends on your employer, charitable organisations and hospitals etc can SS a whole range of stuff including rent, mortgages, utilities etc.

Galumay
9th February 2008, 07:42 PM
That's right, it's legal to buy ONE per financial year, not 2 at the same time


.....and no one suggested you could buy 2 at the same time, as i said, you must have misunderstood the post.

Mark T
9th February 2008, 08:03 PM
.....and no one suggested you could buy 2 at the same time, as i said, you must have misunderstood the post.

Actually, with respect, I suggested that you can buy 2 at the same time. As I "advised" above, you can buy 2 laptops now, get reimbursement for one before 31 March, and reimbursed for the other after 31 March. The one per year restriction applies to "benefits" not "laptops" and it the reimbursement that constitutes a benefit, not the purchase.

But, as I also advised earlier, professional advice may be in order.

Galumay
9th February 2008, 09:59 PM
Actually, with respect, I suggested that you can buy 2 at the same time.......

true, but not before Wowbagger made his comment based on a misunderstanding of what had been posted originally!! ok, its pedantic and confusing but if you read the thread from the start you will see what i mean.

also i agree with you that you can purchase 2 or even more at the same time and then salary sacrifice one purchase per year. as long as you have a tax invoice for the purchase and dont claim more than one per FBT year, and the SS arrangement is complete prior to the end of the FBT year.

sedaai
10th February 2008, 01:37 PM
The ATO has widen/clarified the rules to allow a range of eligibility for Salary Sacrifice.

I work for for an energy retailer in regional Queensland, as such one of the options available open to me is the ability a set amount of my income into my electricity account.

A large range of Queensland Public Service entities now have the option to do this also.

As said above best to speak to your Human Resource department to assess what your company offers.

DebB
10th February 2008, 01:54 PM
We bought my MBP through salary sacrifice. My DH works for a small non-profit company and they were happy to do it. It worked as the PP outlined: We asked for permission first, then bought the computer from the apple online education store as I am a teacher. He then gave the paper work to the company and they reimbursed us. We then had reduced net salary for a couple of pays until it was paid for. This saved us about $500 all up with the ed discount, and allowed us to get the MBP over the MB for the money. I wish you luck!
Deb