How Salary Sacrificing Can Help Save Tax in Australia
We receive many queries from our clients on tax saving tips. In this blog KPG TAXATION Hobart has compiled how Salary Sacrificing can help save tax in Australia. Highlights: Fringe benefits Limit on salary sacrifice Residents of Hobart trying to learn how to save tax in Australia, salary sacrificing is one way to do it. This is also called “salary packaging,” and it works a few different ways. With salary sacrificing, a taxpayer would put some of their pre-tax income toward a benefit before they are taxed. Some of the most common salary sacrifice benefits are motor vehicles and superannuation. Fringe benefits So, an employee would forgo part of their pre-tax paycheck before they get it. For example, they could use salary sacrificing to pay for a new car, computer, insurance, rent payments, mortgage payments, and other benefits. These benefits are also referred to as “fringe benefits,” and they can save Australians thousands of dollars in taxes every year, with a few e...