Moderator
I'm pretty sure the mob I last worked for paid $1000/month plus the company fuel card for those that used/leased their own ute.Originally Posted by Toxic_Avenger
...also worth noting, I'm working off what we call a 'job facility vehicle' which is fully company funded.
You can also go the salary sacrifice route, which can have additional tax breaks, where the vehicle is leased by, and owned by you, rather than the company. Never had one, but I believe that in this case, the lease costs are pre-tax, and the residual value once the lease is up belongs to you- so when your vehicle lease is up, you saell the car and keep the profits. Just don't go buying a freelander
For comparing this kind of stuff, the finance calculation to use is "net present value".
Weigh up the future costs (cashflows positive or negative) of two propositions or purchasing decisions, then offset them with the cost of capital... ie compare it to the benefit gained over other suitable investments- like having $50K in the bank earning interest, or your share portfolio average growth rate... This can bring both options back to a dollar value in 'today's money' and help make a more informed decision.
That tallied with my rough back of the envelope calc reckoning my company BT50 was worth $12-$14k to me as we could use it for private use, the proviso being we fuelled it if leaving Canberra.
TopicToaster
SubscriberMine is 'reasonable personal use'. The policy to the letter is that fuel is purchased at '500km from your area of operations'... which for me means 500km from lightning ridge, coonabarabran, scone, dorrigo, and Tenterfield.
I don't push the limits, just see family once a months in Newcastle 300km away.
-Mitch
'El Burro' 2012 Defender 90.
Super Moderator & CA manager
SubscriberI’ve driven mine to Adelaide, Sydney and everywhere in between. Tow my van up to the river, and down to Mums - both 4 hour trips. I am quite lucky in my role though - currently they need me more than I need them. Not sure how long this will last, so I’ll make the most of it before a robot takes my job.... 😁
If you need to contact me please email homestarrunnerau@gmail.com - thanks - Gav.
Swaggie
When you’re signing up for a salary I don’t think there is a set formula and every organization is different.
My current job was my first with a car.....I had no idea and accepted the ‘package’, I’m a little easier now but not sure I would have been able to negotiate anything better.
Phone wasn’t taken into account......plus I never own a personal phone.
Not sure if it’s a question you need to ask, and not that I understand it but ask who pays the fringe benefit.
TopicToaster
SubscriberBy definition, a fringe benefit is a benefit provided by employers to their employees in excess of $2000, and may be in addition to, or part of, their salary or wages package.
FBT is separate to income tax and is calculated on the taxable value of the fringe benefits provided, with the FBT 'year' run between 1 April to 31 March (out of phase with the financial year). So the employer pays the benefit, and the employee is taxed accordingly, with the tax cost relative to their individual situation.
So, when OP is looking for the value of a vehicle included as part of a salary package, then it's a fringe benefit, and covered by the employer.
If any portion of it is covered by the employee, then the value is adjusted accordingly (ie employee covers every second tank of fuel, or running costs over $500 per month). In this case, costs become a liability and detract from value. So that's the devil in the detail.
-Mitch
'El Burro' 2012 Defender 90.
Master
The auto clubs take turns putting these out, seems on the money
https://www.racq.com.au/-/media/racq...ning-costs-pdf
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