Salary sacrifice and leasing a car

wow it doesnt sound worth it

Wow I'll get her to see an accountant, I dont think she will clock up the Km's to be truethfull, not with the new job it will be mostly flying I wonder if she can lease a plane :D so it may not be worth it and she just under the higher tax bracket she wanted a ford foucus XR5 any way not a land rover :(

If she has a legitimate reason for claiming work related travel (refer to your accountant or ATO website), then owning a car and depriciating it at 26%p/a + proportion of running costs that are work related is a good option.

If the car is a commercial vehicle (ute or van that carries more than 1,000kg) and is used for work, then even if the work related use is not 100% , the ATO deem it to be commercial and the whole vehicle and all it's expenses are tax deductible. This criteria isn't industry specific, so even if you don't need a truck for work, the ATO still call it a commercial vehicle, provided you can legitimately claim the travel.

Please check with your accountant in case this criteria has recently changed.

However given this situation, a 130DC Defender makes for a very attractive work car.


I think this is reason why Salary Packaging companies don't offer high capacity utes, or the one I inquired about some years ago didn't.

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Originally Posted by Chronic

with the new job it will be mostly flying I wonder if she can lease a plane :D

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...now there's an idea ...I'd love to see that... a Cessna on salary sacrifice :D

Quote:

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Originally Posted by Chronic

Wow I'll get her to see an accountant, I dont think she will clock up the Km's to be truethfull, not with the new job it will be mostly flying I wonder if she can lease a plane :D so it may not be worth it and she just under the higher tax bracket she wanted a ford foucus XR5 any way not a land rover :(

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She could always get a LR and you drive it and buy her a focus.:whistling:

Our D3 is my wife's leased car.:thumbsup:

Quote:

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Originally Posted by Chronic

Wow I'll get her to see an accountant, I dont think she will clock up the Km's to be truethfull, not with the new job it will be mostly flying I wonder if she can lease a plane :D so it may not be worth it and she just under the higher tax bracket she wanted a ford foucus XR5 any way not a land rover :(

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She doesn't have to do the k's, and it doesn't have to be her car.....I leased the D3 for the wife, as she does higher k's than me, as I also fly everywhere with work.

However, if she's doing low k's, but the majority are business related, it might also be worth it. Gather all your facts and figures and pop to see an aco****ant.

yeah will do one last question can you trade cars with a lease ?

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Originally Posted by Chronic

yeah will do one last question can you trade cars with a lease ?

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If you mean can you trade a car on a lease in for a newer one, then yes....not done it yet, but if it's like finance I suspect the dealer will make the residual payment on your behalf and roll the (hopefully) positive balance forward as a deposit on the new one.

You get any positive balance on a trade in as a cheque from the dealer. It is not legal to pay for the new vehicle any other way.
Regards,
Tote

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Originally Posted by Tote

You get any positive balance on a trade in as a cheque from the dealer. It is not legal to pay for the new vehicle any other way.
Regards,
Tote

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Well, I think you're obligated to declare the "profit" on your tax return as it came from pre-tax income, but I didn't realise that stopped the dealer taking it directly? Oh well, worst ways the dealer you knows you have it so you just have to bank it and then give it back to them! Doesn't really matter I guess.