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Bob F.
Bob F.
Melbourne, VIC
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I have a job that gives me 127K + suoer (9.5%) and I have applied for a NFP job that gives me 110K + salary packaging + super (9.5%). I am trying to work out what my take home pay difference will be (assuming I have HECS). Could anyone assist? I'm less concerned with knowing 'savings' obtained with salary packaging, and more concerned with take home pay (i.e net loss/gain).

If necessary, welcome to assume equivalent expenses to SP value in the former to assist with comparison against latter.

7 years ago

Responses

Hi Bob,

What value is the salary packaging? the key difference is usually that the salary packaging portion will have no tax applicable. Since any income over $87,000 attracts a 37% tax rate assuming you income stays the same and the salary packaging is worth $17,000 you would be $6,290 better off since this portion will attract no tax.

As far as the take home pay portion of the question, the key question you need to speak with you employer is around what you can package. For example many people to salary package a car. If this is the case then yes your take home pay will be less but you will not have to make a monthly car payment so you will potentially be better off.

The following is a great resource website https://www.smartsalary.com.au

Hope this helps

Awesome Albert

Comments

Hey Albert,

Thanks heaps :)
The usual NFP SP is about 15.8K. I am trying to understand the scenarios whereby I e.g. SP a car AND my house repayments, assuming my company allows it. I get the fact that whatever I SP will be an expense in the non-salary packaged scenario, I just dont know how to compare apples with oranges to get a true sense of net loss or gain..?

Hi there,

Ok to work out your tax go to www.shuriken.com there is a tax calculator at the top of the screen.

Do understand that some NFP are exempt or reduced FBT. Therefore you may be able to get up to 15k or more totally tax free because there is no FBT.

Hope that helped.

AJ

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