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  • Writer's pictureMark Dunsmuir

Fringe Benefits are not your enemy!


In this month’s newsletter, we focus on Fringe Benefits Tax – and while this is a subject no business owner wants to think about - let’s look at this from a positive angle.

How can you make this work for you?

How can you make this work for your employees?

A simple example is salary sacrificing into superannuation – and let’s see what the effect of taking this option up can have on your retirement goals.

Let's take an example of a 30-year-old, and from that age, they decide to salary sacrifice $100 per week into their superannuation fund.

Assuming the fund earns 5% per year and allowing for tax, this would mean that by the age of 60 – they would have an extra $287,000 in superannuation. This small sacrifice per week, has resulted in them being able to retire years earlier than what they may have originally intended.

Our newsletter also contains an article on the new Electric cars exemption. The naming of this exemption is a little misleading, as it also available for certain hybrid cars.

Having recently purchased a car eligible for this exemption, I can vouch for the substantial tax savings that can be received by sacrificing this vehicle through my business.

Mark.

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