Showing posts with label Salary. Show all posts
Showing posts with label Salary. Show all posts

Friday, November 29, 2013

The Best Way of Buying Expensive Things

What is the essence of ‘salary sacrifice Australia’?

‘Salary sacrifice Australia’ is an innovative financial scheme that is prevalent in Australia, which gives good benefits to both the employers, as well as the employees. All monthly salaried employees can make use of this specific financial plan, for making valuable purchases. 

 This scheme is also officially approved by the ‘Australian Taxation Office’, and so, it is a legally valid method. This financial agreement, which is also termed as ‘salary packaging’ or ‘total remuneration packaging’, is a contract between the employers and the employees. 

As per this contract, the employee gives his or her consent for giving up a part of their monthly salary, as a replacement for some other equivalent benefit, which will be actually in par with the surrendered salary. This is indeed a great method, which enables the salaried class to buy expensive goods, without pumping the needed capital for the same from their existing savings, and just because of the constructive feasibility, this specific scheme is very much appreciated by all employees. 

As far as the employers are concerned, for sure they will be able to enhance the quality of their ‘Human Resource Management’ efforts, by offering this scheme; another positive side-effect of this salary scheme is that it will augment the productivity of the workforce, considerably, and thus the overall profits of the company can be amplified. The scheme will also increase the loyalty level of the workforce, thus helping the management in their ‘employee retention’ endeavors.

What are the fundamental requirements for ‘salary sacrifice Australia’?

There are some mandatory requirements that should be followed by the concerned parties, and only when these conditions are met in accordance with the set rules, the contract will become legally valid. Some of the main requirements are as follows:

  • The contract should be made into effect, before the implementation.
  • It should be noted that the agreement can be done by oral methods also, even though it is always advisable to get it done in black and white, as it will go on records.
  • Yet another significant matter that should be remembered by all employees who are preparing to salary sacrifice is that, they will not have any claims for the relinquished salary, until the contract with the company comes to an end.
  • The benefits that have got accumulated in the account of the employee before the enforcement of the contract will not be a part of the contract. 
  • In case the concerned individual is awarded a new financial benefit, outside the salary sacrifice scheme, then obviously that will come under the taxable income account. 

What are the general things that can be bought by the scheme of ‘salary sacrifice Australia’?

On the whole, many kinds of valuable goods, which in normal cases will need bulk money for buying, can be acquired by using this financial scheme, in an easy manner. Some of such items are ‘brand new motor vehicles’, ‘laptops’, ‘tabs’, ‘iPads’, ‘GPRS Units’ and ‘Income Protection Insurances’. Many more items can be added to the list, and so, whenever you decide to go for ‘salary sacrifice’, try to get hold of a reliable and professional finance firm, for making arrangements for the same.

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