Individual income tax rates: http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm
http://www.privatefleet.com.au/index.php?itemID=145
http://www.6aoo.cn/bbs/thread-9596-1-1.html
http://www.sgfleet.com.au/novatedleasevehicles.aspx
Mileage(km) Statutory Rates
0-14999 26%
15000-24999 20%
25000-40000 11%
40001+ 7%
For example,
Car cost: 15,000
Gross income: 150,000
Annual KMs: 7,500
FBT Taxable Value = $15,000 * 26% = 3,900
Tax saving = Car cost * tax rate = $15,000 * 40% = $6,000
Full FBT Employer:
FBT liability = Fringe Benefit Taxable Value * Gross Up rate * Fringe Benefit Tax rate = $3,900 * 2.0647 * 46.5% = $3,744
Total saving = $6,000 - $3,744 = $2,256
Rebatable FBT Employer:
FBT liability = Fringe Benefit Taxable Value * Gross Up rate * Fringe Benefit Tax rate * 52% = $3,900 * 2.0647 * 46.5% * 52% = $1,947
Total saving = $6,000 - $1,947 = $4,053
PBI (17k) or Charity Employer (30k):
Gross Up Value = Fringe Benefit Taxable Value * Gross Up rate = $8,052
FBT liability =$0
Total saving = $6,000 - $0 = $6,000
Conclusion:
The higher mileage, the higher saving.
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if i am on 65k plus super, would it be worth packaging a 05 model car for 21k if i plan to do 40,000kms per year?
ReplyDeleteCar cost: 21,000
ReplyDeleteGross income: 65,000
Annual KMs: 40,000
FBT Taxable Value = $21,000 * 11% = $2,310
Tax saving = Car cost * tax rate = $21,000 * 30% = $6,300
Full FBT Employer:
FBT liability = Fringe Benefit Taxable Value * Gross Up rate * Fringe Benefit Tax rate = $2,310 * 2.0647 * 46.5% = $2,218
Total saving = $6,300 - $2,218 = $4,082
Rebatable FBT Employer:
FBT liability = Fringe Benefit Taxable Value * Gross Up rate * Fringe Benefit Tax rate = $2,310 * 2.0647 * 46.5% * 52% = $1,153
Total saving = $6,300 - $1,153 = $5,147
PBI (17k) or Charity Employer (30k):
Gross Up Value = Fringe Benefit Taxable Value * Gross Up rate = $2,310 * 2.0647 = $4,769
FBT liability = $0
Total saving = $6,300 - $0 = $6,300