What effect does salary sacrificing a motor vehicle have on my Payment Summary (Group Certificate)?
• The pre-tax sacrifice component reduces your taxable salary and thus reduces the reported Gross Payments to the Australian Taxation Office. • The grossed up taxable value of the motor vehicle however will be reported on your Payment Summary as a reportable fringe benefit. The grossed up taxable value of the motor vehicle can be expressed as the taxable value x 2.1292. • By electing to make an after tax contribution towards the cost of the motor vehicle via an ECM arrangement the taxable value of the vehicle can be reduced or eliminated. Please seek financial advice if you are uncertain as to the effect of salary sacrificing a motor vehicle or adopting an ECM arrangement.
