Salary Sacrifice Question

letmethefuqin on 18/07/2022 - 18:14

I’m after some info from the smart people of ozb!
Having a discussion with a friend (same friend that got done over by a RE) and we were discussing tax

She works for a possible not-for-profit
Making about 70k a year
She’s paid by 2 different departments
And has a salary sacrifice that sends 1000 to some salary company that then sends her back 1000
And 200 that gets sent to a “sort of credit card thing”

I mentioned that she needs to be careful not to have a tax bill if they are paying here from 2 different departments

Which she then showed me her my gov showing 2 notices of assessments
One of about 20k with about 2k tax
And one of about 4k with about 1.5k tax

Some how im very confused how someone on 70k a year has a taxable income of 24k over 2 departments ..

Is this something that is going to end in a huge tax bill or is this some very smart legal tax dodging business

Financial

Comments

  • MrBr0 on 18/07/2022 - 18:23
    +3

    Speak to payroll and the salary sacrifice company

  • stirlo on 18/07/2022 - 18:24
    +2

    If she works for a charity there's ability to salary package $15,900 of cash per year. There's also an extra $2.6k for food/entertainment which can be added on top. That's probably where those amounts come from.

    https://www.maxxia.com.au/news/salary-packaging/i-work-chari…

    Even with that the income seems a bit low if she really does have a taxable income of only $24k on $70k of income. Does she have a notated lease a car too?

    • toniyellow on 18/07/2022 - 18:33
      +3

      15,900 per year, per employer. https://community.ato.gov.au/s/question/a0J9s0000001DQn/p000…

      i.e. two employers means 2 x 15,900

      Not sure how working for two different departments has fit that criteria, but perhaps the salary packaging company has figured out a way.

      • letmethefuqin on 18/07/2022 - 20:13
        +1

        I think they might has worked out a way to split the business in 2 and run as 2 different company’s under the same roof by the sounds of it

    • letmethefuqin on 18/07/2022 - 20:12

      This could be how they are doing it!
      No lease but I do believe she’s involved with a company that consolidates her debts as she is horrible with managing finances

  • AndyC1 on 18/07/2022 - 19:29
    +1

    Love the wishy washy words used. As such get your friend on the side to get an accountant to help her.

  • BewareOfThe Dog on 18/07/2022 - 19:48
    +2

    Can I get a job there?

  • meowsers on 18/07/2022 - 20:27
    +1

    Basically if its a PBI (public benevolent institution OR even better a charity you can salary package.

    Very common for healthcare workers.

    It's not uncommon for a doctor or nurse to work at 5 different hospitals on a casual basis, salary package 15k per facility and take home an extra 50k tax free a year + meal cards. Even better if you work for some hospitals that are setup as charities.

    • netjock on 18/07/2022 - 22:16
      -1

      It's not uncommon for a doctor or nurse to work at 5 different hospitals on a casual basis, salary package 15k per facility and take home an extra 50k tax free a year + meal cards

      Nice to know they would still like a hefty pay rise.

      • meowsers on 18/07/2022 - 22:52

        Yeah well public hospitals still pay sh*t and the conditions are shambolic so you have to motivate someone to work in those hellholes. It's way easier to just go private and never look back, but alas the sense of service and learning keeps some going.

        Contrary to public belief politicians and bureacrats still make more from a "salaried" perspective in the government pay scheme.

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