The phrase denotes a instrument used to estimate the monetary implications of buying a car by means of a wage sacrifice association in Australia. This association includes an worker foregoing a portion of their pre-tax wage in alternate for the advantage of a automobile, with related working prices usually included. The calculator sometimes takes into consideration elements corresponding to car worth, anticipated annual mileage, finance rates of interest (if relevant), and the person’s revenue tax bracket to supply an estimate of potential financial savings and internet prices.
The usage of such instruments may be useful in figuring out the monetary viability of a wage sacrifice automobile association. Potential advantages embody decreased taxable revenue, resulting in decrease revenue tax legal responsibility. Moreover, items and providers tax (GST) financial savings on the acquisition worth and working prices could also be realized. The historic context lies within the evolution of worker advantages packages, with wage sacrificing changing into a typical technique to boost worker compensation whereas providing tax benefits. Nevertheless, it is necessary to know the potential implications on superannuation contributions and different salary-related advantages.
