If you work for a Not for Profit you should be aware that you can package your CAP on mortgage / rent / credit card and pay FBT at a discounted rate. If you are earning between $90,000 and $180,000, you can save $1,708 per year and if you are earning more than $180,000 you can save $3,510 per year.
| Tax Rates | 37.00% | 45.00% | |
| Gross-up used | 2.0802 | – | – |
| Gross-up available | $30,000 | $30,000 | $30,000 |
| Mortgage payment | 1.8868 | $15,900 | $15,900 |
| Tax savings (PAYG) | $5,883 | $7,155 | |
| FBT paid (net of tax) | -$4,175 | -$3,645 | |
| Mortgage saving | $1,708 | $3,510 |
You can also package your motor vehicle and make a post-tax contribution to offset any FBT.
| Personal Vehicle value | $45,000 | |
| Taxable value | 20% | $9,000 |
| Post tax contribution required | $9,000 |
The typical cost of running a vehicle, assuming 20,000km’s per year are listed below.
| Cost of running the car per month | |
| Lease | $787 |
| Fuel | $250 |
| Maintenance | $54 |
| Tyres | $33 |
| Registration | $66 |
| Insurance | $83 |
| Total per Month / Year | $1,274 |
| GST | $127 |
| Total including GST | $1,401 |
The annual costs of running the car are $15,283 and if you pay $9,000 of that post tax, then the balance $6,283 can be pre-tax and you incur no FBT. In addition to that, the GST can be saved
| Tax rates | 37.00% | 45.00% | |
| Savings by paying Post Tax contribution | |||
| Tax saved (PAYG) | $2,325 | $2,828 | |
| GST Saved (net of tax) | $963 | $841 | |
| FBT paid (net of tax) | – | – | |
| $3,288 | $3,668 | ||
| Grossup used | 2.0802 | – | – |
| Gross-up available | $30,000 | $30,000 | $30,000 |
| Mortgage payment | 1.8868 | $15,900 | $15,900 |
| Tax savings (PAYG) | $5,883 | $7,155 | |
| FBT paid (net of tax) | -$4,175 | -$3,645 | |
| Mortgage saving | $1,708 | $3,510 | |
| Total savings | $4,996 | $7,178 |
By combining the options available, it is easy to see how you can thousands each year.
