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Sacrifice salary to get bonus?
I have a question regarding the Federal Government's recently announced $1,000 bonus for each family that receives Family Tax Benefit (FTB) Part A.
I work full time and my wife is currently being paid maternity leave. I calculate that we will earn approx $5,500 over the $100,801 threshold for receiving FBT Part A, and therefore would miss out on the $1,000 bonus.
Is it worth me making salary sacrificing extra funds into my superannuation in order to reduce my taxable income, and therefore receive the $1000 bonus? Steve, Mittagong.
This is a classic case where I can't give advice because I haven't got all of the information and your goals, though I can guess it's to maximize your money! You need to consider the following to work out YOUR answer.
Family assistance is paid based on your family's adjusted taxable income. In order to pay you what you are entitled to, we need to know what your and your partner's (if you have one) adjusted taxable income is. This is calculated as follows:
Taxable income
+ (plus) Fringe benefits
+ (plus) Tax free government pensions and benefits
+ (plus) Net rental property loss
+ (plus) Foreign income
- (minus) Child Support (maintenance) you pay
I know it looks daunting, but that's what an adviser would have to know before answering your question. If you have time and you are pretty smart, you can work it out yourself. If you haven't got time or a head for figures, you need help - professional or government.
Note, from 1 July 2009 salary sacrifice may be included; the bill is still to be passed, but that doesn't help you now. Still, it's worth looking into it.
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