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bosworth*
27-10-2009, 12:05 PM
Is anyone here a Pube of the ACT government?

You might be able to buy a bike with your pre-tax salary.

http://www.abc.net.au/news/stories/2009/10/27/2724999.htm
gsavage
27-10-2009, 01:40 PM
What a great idea, only wish they had thought of it while I was still working with them. Maybe they will give the same deal to the State and Federal Govt Public Servants. :)
James
27-10-2009, 02:47 PM
As the resident tax professional I feel obliged to point out that you'll still probably have to pay 46.5% FBT on a pre-tax bike (unless of course the Government pays it for you... which it may or may not do...) which means it's completely irrelevant whether you buy the bike with pre- or post-tax dollars if you're in the top tax bracket. If you're in the lower brackets you'll be better off buying the bike with your ordinary salary.
gsavage
27-10-2009, 04:55 PM
As the resident tax professional I feel obliged to point out that you'll still probably have to pay 46.5% FBT on a pre-tax bike (unless of course the Government pays it for you... which it may or may not do...) which means it's completely irrelevant whether you buy the bike with pre- or post-tax dollars if you're in the top tax bracket. If you're in the lower brackets you'll be better off buying the bike with your ordinary salary.

My dream is crushed... :(
joel
27-10-2009, 06:31 PM
As the resident tax professional I feel obliged to point out that you'll still probably have to pay 46.5% FBT on a pre-tax bike (unless of course the Government pays it for you... which it may or may not do...) which means it's completely irrelevant whether you buy the bike with pre- or post-tax dollars if you're in the top tax bracket. If you're in the lower brackets you'll be better off buying the bike with your ordinary salary.

Can you explain -- with short words :) -- why that is? I thought the whole lease car scam allowed you to pay a reduced rate of FBT based on how many kms you drove (hence the obscenities of people driving to the coast to 'get their kilometres up'). Is it just a matter that pushbikes aren't covered by such a scheme? Wouldn't there also be the minor benefit that the lease company would be able to claim back the GST.

I'll admit I've never looked closely at the leased car schemes because I don't do anywhere near enough kms?