Many employees are uncertain how to salary sacrifice in their jobs to exchange some part of their wage for benefits, which can include loan repayments, child car costs, school fees and other expenses.
This video from Money101 reveals that many Australians are not sure how salary sacrifice works, or are not able to choose between salary sacrifice or superannuation offered by theAustralian Government Co-Contribution scheme. Before agreeing to any financial rewards scheme, it can be beneficial to speak to a financial adviser, who will be able to offer impartial advice on the best salary option for you.
The two most common forms of salary sacrifice come in the form of superannuation and fringe benefits, the latter of which involves making payments to employees in different ways than standard salary payments, usually towards the cost of expenses incurred by the employee in their personal life or as funding for a car used for getting to and from work, meeting with clients and other job-related journeys.
Your employer will usually inform you whether they operate salary sacrifice arrangements, and this factor is becoming increasingly important for people when comparing different employers. You should also read and consider the terms of salary sacrifice arrangements carefully, and understand that this will involve a portion of your income being inaccessible for a certain time and being put towards expenses that you may not benefit from until a time in the future.
For more details about salary sacrifice arrangements and novated leasing in locations like Gerladton, Albany and Perth in Western Australia and across Australia, contact Fleet Network on 08 6555 3854.