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General => General Discussion => Topic started by: me217 on April 10, 2017, 11:56:56 PM

Title: need help with job offer
Post by: me217 on April 10, 2017, 11:56:56 PM
hey all
i have been offered a promotion at work, and it includes a pay rise as well as a company car. i am just wondering how the car would affect my tax returns. anyone with a bit more knowledge then me feel free to chip in.

Title: Re: need help with job offer
Post by: prodigyrf on April 11, 2017, 02:18:21 AM
Well it's like this for the use of your own car in biz-
https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-travel-expenses/Car-expenses/ (https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-travel-expenses/Car-expenses/)
but since the company has given you the use of a company car it's like this-
http://law.ato.gov.au/atolaw/view.htm?docid=MTR/MT2027/NAT/ATO/00001 (http://law.ato.gov.au/atolaw/view.htm?docid=MTR/MT2027/NAT/ATO/00001)
although this might be a bit simpler-
http://moneybuddy.com.au/car-loans/guide-fringe-benefits-tax.html (http://moneybuddy.com.au/car-loans/guide-fringe-benefits-tax.html)
but just be wary it's the company that's providing you with the car and not you signing on to a novated lease which can leave you with the lease obligations if you lose your job  :'(
Title: Re: need help with job offer
Post by: Gandalf the White on April 11, 2017, 05:29:34 AM
Firstly congratulations and are you happy about the promotion and overall pay rise etc? If yes, then roll with the extra car bonus, but yes there could be some minor tax implications.

I've had issued company cars that had no tax impact, a novated lease that had FBT costs that I would never do again, to a finance lease that for me seems to work in my favour.

If they're issuing you with a car, ask the payroll department what if ant FBT implications you might incur. In the scheme of the overall package, it shouldn't be much, but better to know up front.
Title: Re: need help with job offer
Post by: Julian Kaye on April 11, 2017, 08:02:48 AM

  " I have been offered a promotion at work, and it includes a pay rise as well as a company car". Stop there, that's all you need to consider. NEVER let tax or social benefit issues stop your advancement in your professional life.
Title: Re: need help with job offer
Post by: chester ver2.0 on April 11, 2017, 09:32:14 AM
And never ever ever ever turn down a fully maintained company vehicle what you may loose in extra tax you will gain 10 times over when someone else is paying the bills
Title: Re: need help with job offer
Post by: Bird on April 11, 2017, 09:52:50 AM
Quote from: Julian Kaye
  " I have been offered a promotion at work, and it includes a pay rise as well as a company car". Stop there, that's all you need to consider. NEVER let tax or social benefit issues stop your advancement in your professional life.
Agree 11000% ...


"sorry I don't want the promotion as your offering me a car and I might lose a few bux in tax"
just doesn't add up
Title: Re: need help with job offer
Post by: macca on April 11, 2017, 10:06:36 AM
...and if you use your 4wd to get to work it will now be used only for your trips and not get knocked around by everyday use

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Title: Re: need help with job offer
Post by: Gandalf the White on April 11, 2017, 10:11:45 AM
Pm sent
Title: Re: need help with job offer
Post by: Throbbinhood on April 11, 2017, 10:28:18 AM
hey mate if you don't want the company car i'll drive it around no problems
Title: Re: need help with job offer
Post by: me217 on April 11, 2017, 10:34:57 AM
the company car is actually a 4wd ute, although not a new one by any means, 10 - 15 years old. a company this size has a few spare utes already. also i will get full private use with it, so it may replace the current tug. for camping trips also.
Title: Re: need help with job offer
Post by: Fathom on April 11, 2017, 10:34:59 AM
Best to speak to your own accountant once you have checked how the company structure the car.
Title: Re: need help with job offer
Post by: weeds on April 11, 2017, 11:59:28 AM
ask who is paying the FBT on private km and parking...my company pays ours and doesn't impact on tax.


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Title: Re: need help with job offer
Post by: Humphreythebear on April 11, 2017, 12:03:04 PM
When i was offered a vehicle , my only reply to
 "what kind of car do you want ?"

' One you pay for '

"what colour ? "

'dont care , your paying for it ......'

I do around 800km a week getting to work , so the savings in fuel , wear and tear negate any of the tax implications . The car is not what id choose - but its free !
Title: Re: need help with job offer
Post by: prodigyrf on April 11, 2017, 12:34:21 PM
Best to speak to your own accountant once you have checked how the company structure the car.

This unless you're good at deciphering the Tax Act and its rulings as you don't want any unpleasant surprises at the end of the fin year.
Title: Re: need help with job offer
Post by: me217 on April 11, 2017, 12:59:29 PM
ask who is paying the FBT on private km and parking...my company pays ours and doesn't impact on tax.


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I'll have to find out. Also parking isn't an issue in my town.
Title: Re: need help with job offer
Post by: GBC on April 11, 2017, 01:18:43 PM
15 Y.O. ute is the magic word. No log books, no FBT. Take it and drive it, there is no down side. It will be classed as a tool of trade vehicle.
Everybody in our company from the managing director down all drive utes for this very reason.
There won't be log books so there won't be 'private kms'.
Title: Re: need help with job offer
Post by: prodigyrf on April 11, 2017, 02:27:25 PM
And welcome to the era of the dual cab ute for mum and the kids too  :cup:
Title: Re: need help with job offer
Post by: Jules456 on April 11, 2017, 03:39:11 PM
Be wary of the ute exemption.  It only applies to one tonne Utes and where use is only work to home. "Incidental private use". FBT will affect you most on superannuation calculations, Medicare levy, child support and allowances from government (if u get any :-) )


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