What are the traps of salary sacrificing?
Common traps are: • Over-packaging – committing too much of your earnings to salary sacrificing and therefore not having enough take home pay to meet other expenses you may have; • Poor advice and misunderstanding the concepts; and • Superannuation – including superannuation contributions in your package depends on your personal circumstances (eg age to retirement, current Reasonable Benefit Limit (RBL) surcharge implications, and any other legislative changes). You are strongly urged to seek independent financial advice Legislative changes – changes to taxation legislation including, but not limited to, changes to Income Tax, FBT, and GST can impact on benefits packaged. Staff need to discuss these risks with their own independent financial adviser as UNSW does not accept any liability for costs imposed by such changes for staff who choose to package their salary.
Related Questions
- Will The Taxbreaks Software estimate how salary sacrificing into Superannuation will affect my taxable income and Family Assistance entitlements?
- What effect does salary sacrificing a motor vehicle have on my Payment Summary (Group Certificate)?
- Can salary sacrificing a motor vehicle affect any other Government payments?
