Pay rise and bonuses
A pay rise or bonus is reward for hard work and extra effort. Many people use this additional income to reward themselves for the hard work they have invested. It is important that any decision to spend the additional monies is balanced with the need and benefits of repaying non deductible debt (such as a home loan or credit cards) and/or using the funds for further investments. In order to be able to determine whether to save or invest as oppose to spending the funds on a holiday or other lifestyle expenditure a cost benefit analysis should be carried out and consideration given to your needs to achieve your short, medium and long term goals.
Financial Advice should be sought as soon as you are aware that you are to receive a bonus or pay rise to determine the best mix of expenditure, savings, debt repayment and investment as determining the right mix can result in an optimal cash flow and taxation position.
Click here to find out more about how your pay rise or bonus will affect your cash flow, lifestyle and taxation position.
Salary packaging service
Salary packaging is an Australian Tax Office approved way of restructuring your income (or your employee’s income). It enables you to buy a range of everyday items out of your pre-tax salary rather than your after-tax salary – leaving more money in your (or your employee’s) back pocket.
Salary packaging gives employees the ability to receive remuneration in both cash and non-cash benefits. Commonly packaged benefits include motor vehicles, additional superannuation and laptop computers.
A Navigate Wealth Adviser can help put together a salary packaging solution for you or your business, to help you attract and retain quality employees as well as:
- Save you money on payroll tax and workers compensation;
- Reduce your administration burden;
- Simplify your corporate superannuation;
- Protect your business through insurance; and
Create an environment where employees want to work for you as well as increase employee retention.
Contact us to find out the best salary packaging solution for yourself or your employees.