Tax Rebate Calculator

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Tax Rebate Calculator Powered By Docstoc

This is designed as an estimator only and does not encompass every possible scenario. See assumptions below.
You are encouraged to seek your own professional advice before making decisions regarding salary packaging.
Instructions: insert data in shaded cells, hold cursor over cells to see further information regarding the information required

Information Required:                                                                                                                           Marginal Tax Rates

Family income                                                                                                               Taxable income           Marginal tax rate (incl Medicare)
Marginal tax rate of employee                                                                                                  > $180,000                         46.5%
No. of children in care (not including school children)                                                                    $80,000 - $180,000                     41.5%
Days of care per week (assumes same for all children)                                                                      $34,000 - $80,000                      31.5%
Cost of care per day (assumes 8 hours care)                                                                                 $6,000 - $34,000                      16.5%
                                                                                                                                < $6,000                           0.0%
Cost Comparison:

Cost if salary package (after-tax)
        Initial cost (equals salary sacrifice)                                       $0.00
        Tax would otherwise pay on salary                                            $0.00
        Net cost                                                                     $0.00

Cost if pay directly                                                    With old CCTR With new CCTR
        Initial cost                                                              $0.00         $0.00
        Less CCB (max 50 hrs/wk)                                                  $0.00         $0.00
        Less CCTR                                                                 $0.00         $0.00
        Net cost                                                                  $0.00         $0.00

Best to package or pay directly…….                                        Pay directly          Pay directly

Assumptions include, but are not limited to:
1. Calculates for up to 3 children only
2. Calculates for non-school children only
3. Ignores uplift for part-time use of child care
4. Assumes all children use care for the same number of hours per week, 52 weeks of the year
5. Proposed new CCTR not means tested (yet to be confirmed by government)
6. Applies only one marginal tax rate to salary sacrifice amount, which may not be accurate if employee drops to next tax bracket

This tool is of a general nature and is not intended to be relied upon or to be a substitute for specific professional advice. No responsibility for loss occasioned to any person
acting on or refraining from action as a result of any of the content of this tool can be accepted. Some parts of the tool may be subject to administrative or legislative changes.

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