Whats a landcruiser worht as part of a salary package?

oops should have read 'worth'

Bob

Bob

By what you write I assume that it is obviously going to be a work vehicle with private use?

How long does it take to depreciate a vehicle to zero dollars? 4 years? Cost of new vehicle $70K?

$35K sounds a tad expensive for a 12 month contract. Servicing shouldn't equate to more than $1500 per year(guesstimate).

Methinks it would be better to have that part of the package in hand than tied up in a vehicle.

Cheers

Depends on a lot of things.

Ie model and whether you find it is useable. If it is a tray top loaded up permanently and you have a couple of kids then it is worth nothing privateley.

If it is a fully oprtion 100 series Sahara then it may be different.

How far outback is it. If you are in the middle of the desert then you may not actually want to go anywhere very much for private reasons.

Work out how much you are likely to use it for personal use, calculate fuel etc and that is what it is worth. Some people say that there are other costs involved but really most people still end up with personal cars anyway they have to register etc even though they may not be used all that much.

I would think it worth about $8-10K myself.

I'm not an expert on packaging, but that sounds excessive.

For simplicity, assume normal Taxation rates (there may be a remote area allowance and you have medicare levies))
ATO Tax rates 2006-07
Taxable income Tax on this income
$0 – $6,000 Nil
$6,001 – $25,000 15c for each $1 over $6,000
$25,001 – $75,000 $2,850 plus 30c for each $1 over $25,000
$75,001 – $150,000 $17,850 plus 40c for each $1 over $75,000
Over $150,000 $47,850 plus 45c for each $1 over $150,000

If the marginal tax rate is 30 cents, the real cost is $24,500, 40 cents 21,000, and 45 cents $19,250

I am assuming that to earn over $150,000 for the 12 months will require a time commitment which would mean dedication and not much time for private use, making $19250 seem expensive.

If at the 30 cent end of the scale, where there might be much more time for private use, it will still take a lot to be worth $24,500

Hopefully this makes sense :)

Hey Boo

A comode or a V6 camary is taxed at a value of around $14 k per annum

Some companies offer around $18k for a novated lease.

What the value kick on the FBT if you do not use it for business for a certain number of KM. then it can realy bite you if it is valued at $35.

Get them to pay you the $35k and you will novate the lease yourself then you come out with the car at the other end.

Bottm line talk to your accountant before you sign.

TM2CW

Trevor

Bob,

It seems a bit high but you will be surprised when you add up all the costs how quickly it all adds up (It will be over $20k easy). They should be able to provide you with a breakdown of leasing, running, and FBTcosts. If the car is used for the majority of work then there will be little FBT.

The big advantage here is that you do not need to pay for the vehicle or maintenance using your own post tax $.

Get the model of the car and see if they will provide you a breakdown. If not there are websites that provide comparisons (google vehicle leasing and FBT) and calculators.

Bob,

Is is a novated lease? If so it sounds expensive.

I pay about $19k per year before tax for a 05 GU (novated lease).

Angus

As above, but how far outback and I would assume at that $'s it's with all, fuel paid?

We live remote and don't get to town for on avge every 6 weeks. Therefore a package like that would be a cost not a benefit.

Bob

That sounds about the right "cost" to them of the vehicle including Fringe Benefits tax on a leased cruiser, ballpark, but that is diffrent to what it is worth and everyones value of that is different. If it is primarily a work vehicle then the worth portion to you I would think is greatly reduced. Maybe say 2/ 5ths. (Weekends private use)

Its Never simple.

Worth about 10 to 15K to you. I am assuming that they are supplying a work car that can be used privately unrestricted with all fuel and insurance paid and fully maintained. At the end of the employment period you walk away with nothing and hand the car back.
The other option is where they are actually leasing you the vehicle which if a novated lease you can still have fully maintained but be under no illusion, you pay every cent of maintenance and fuel as an amount taken from your income before tax is applied to cover all the vehicle costs and at the end of the lease period there is a residual to pay to keep it or hand it back. savings are in tax and usually work out around the same as above saving but most novated leases you pay interest 1st so to get out of it early in the lease you lose big time.

I rate a Hilux (dual cab, bog model) at around $20k in a package.

Cost to me as an employer. Includes; servicing, fuel, r&m, finacne payment (4 yr payout), rego etc.

Vehicle is used for work & personal.

If I were providing a landcruiser, I reckon $35k would be on or around the mark (without actually doing the sums).

Of couse, this is the total cost to the employer. Presumably they need to provide a vehicle for your work, and that (I would have thought) should be at their cost. So you could probably argue that the full $35k should be part of your wage only if you use the vehicle entirely for personal use.

2001 NM Pajero on a novated lease was $23,000 pa over 4 years for everything. Residual I think was $17,000. That was on a vehicle worth $58,000.