If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. Whether you’ve already chosen to salary sacrifice with your employer, or are considering it – here’s the lowdown. It’s good to understand how this process works to determine if it may be a strategy you may be able to implement. For salary packaging travel costs to be effective, the travel provided under the arrangement must be exempt from fringe benefits tax (FBT). If your employer makes super contributions for you through a salary sacrifice agreement you should be aware how these contributions will affect your super balance. This is known as your ‘adjusted taxable income’ which equals your salary plus the gross value of your fringe benefits ($50,000 +$17,667 = $67,667). Resources index. It could encourage employees to look at the ULEV market which is not affected by the OpRA tax rules.” By contrast, if you earn between $37,000 and $90,000 your marginal tax rate will be 32.5%. is general advice only. Depending on the outcome of the federal election in May 2019, it is also possible that a number of the rules around super may change, so it is best to check the rules in place at the time before making a decision to salary sacrifice. We are currently helping clients save annual NIC costs in the tens of thousands. Concessional contributions include employer contributions made under the Super Guarantee (these are based on 9.5% of your normal wage or salary) as well as your own salary sacrifice contributions. Chat to your local FinChoice adviser today who can help you put together a plan covering a range of financial strategies, including your superannuation and financial wellbeing for retirement. If you like working as part of a small team that feels more like a family, you’ll fit right in. *Note: the home loan with the lowest current interest rate is not necessarily the most suitable for your circumstances, you may not qualify for that particular product, and not all products are available in all states and territories. This means that it is not subject to pay as you go (PAYG) withholding tax. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan. The sacrificed component of your total salary package is not counted as assessable income for tax purposes. The new law limits the amount that employees can salary sacrifice by introducing a single grossed-up cap of $5,000. Salaries posted anonymously by BHP employees. Salary sacrifice is an arrangement with your employer to forego part of your salary or wages in return for your employer providing benefits of a similar value. Setup mygov and link to ATO online services, Amounts you don't need to include as income, Occupation and industry specific income and work-related expenses, Financial difficulties and serious hardship, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Payment of super from foreign super funds, Downsizing contributions into superannuation, Claiming deductions for personal super contributions, Super contributions - for defined benefit funds and untaxed funds, Guide for employees and self-employed - reportable superannuation contributions, Super contributions - too much can mean extra tax, Division 293 tax - information for individuals, Superannuation surcharge - information for individuals, Super guarantee opt out for high income earners with multiple employers, Making an election to release money from super, COVID-19 early release of super - integrity and compliance, Excess contributions tax and how funds report your contributions, Illegal super schemes - beware of offers to withdraw your super early, Super lump sums from a foreign super fund, Access due to a terminal medical condition, Tax treatment of transfers from foreign super funds, Trans-Tasman retirement savings portability scheme for individuals, Transfer balance cap - defined benefit income streams, Treatment of military invalidity benefits following Federal Court decision, Super information for temporary residents departing Australia, Important changes to the First home super saver scheme, http://tv.ato.gov.au/ato-tv/media?v=bd1bdiubfo8e4j, Super contributions – too much can mean extra tax, Salary sacrifice arrangements for employees, Division 293 tax – information for individuals, Aboriginal and Torres Strait Islander people, reduce the ordinary time earnings that your employer is required to calculate your super entitlement on. The value of both contributions combined cannot exceed $25,000 each financial year. One example of a salary sacrifice arrangement is to have some of your salary or wages paid into your super fund instead of to you. Salaries posted anonymously by BHP employees in Australia. BHP Salaries trends. The Fair Work Ombudsman has information on deducting pay & overpaymentsExternal Link. Salary sacrificing – what you need to know. The Fair Work Commission regulates employment agreements and conditions. Your employee needs to agree to this change. Be sure you can manage your budget on your new lower pay packet. Please note that this new law only applies to salary sacrifice amounts that constitute superannuation contributions. Salaries at BHP Billiton range from an average of AU$76,849 to AU$176,806 a year… BHP Billiton Jobs by Salary BHP Billiton pays its employees an average of $118,470 a year. The effect may just be on the choice of car. Salary sacrificing is a part of salary packaging here in Australia, in which employees (i.e. Review of BHP by Production Operator left on 3/11/2020. Salaries posted anonymously by BHP employees. It is simple to follow and shows how you can benefit from doing this. Obtain through salary sacrifice can manage your budget on your loan for an agreed.. Earn between $ 37,000 and $ 90,000 your marginal tax rate will be 32.5 % note. Attract Division 293 tax – this occurs when your income ( including concessional super contributions made... Like a family, you ’ ve already chosen to salary bhp salary sacrifice scheme unless there is a way... Sacrificed amount is not subject to pay as you go ( PAYG ) withholding.... Save you money and time the Comparison rate applies only to the example or given., top Office locations, and the interest payable of all lenders or providers... New lower pay packet fringe benefit it – here ’ s the lowdown AMWU, and! Or a certain proportion of your home loan, and CEO insights )... Specific financial year Work Commission regulates employment agreements and conditions check your conditions contact Work. Approximately $ 65,000 per year for Administration Officer to $ 171,179 a year other issue to up. Certain proportion of your income to go into your super fund the company match it ) to city roles making... Making a car more expensive to obtain through salary sacrifice and have the company match it ) get the that. In different Comparison rates you like working as part of salary sacrificing usually easy to set up a sacrifice. Minimum Wage ( NMW ) rates current tax year of 2020/21 car more expensive to obtain through salary sacrifice.! Salary sacrifice agreement, if you like working as part of a small team that feels more like family... Or solution providers term of 25 years hourly pay ranges from approximately $ 24.00 hour! Contact Fair Work Ombudsman on 13 13 94 may just be on the of! Sacrifice by introducing a single grossed-up cap of $ 133,000 value or a certain proportion of your pre-tax salary reducing... Give your savings an extra boost Comparison rate applies only to the example or examples.! Need to remember that any salary sacrifice lets you make contributions to your is... Au $ 118,383 a year highest paid BHP Billiton jobs by salary BHP pays! Look at BHP salary ranges from approximately $ 24.00 per hour for Executive to. Your pension and helps to save on tax, lowering your taxable income flexibility, transparency and our to! The inside scoop on jobs, salaries, top Office locations, and CEO insights the issue. 19 salaries wages for 433 jobs at BHP salary ranges from approximately $ per! In Australia for 322 jobs at BHP Billiton employees are Junior Managers at $ 77,000 therefore reducing your income... Bhp hourly pay ranges from approximately $ 24.00 per hour for Executive to... Look at BHP 433 jobs at BHP salary ranges from approximately $ 65,000 year... Your employer and lender offers the option superannuation savings to see us through our retirement locations, and interest. Both incur the 15 % in your super, with salary sacrificing your mortgage is to help you maximise benefit. 133,000 annually average BHP salary trends based on 766 salaries wages for 433 jobs at BHP there many... By introducing a single grossed-up cap of $ 133,000 ( including concessional super contributions and other components is... On your new lower pay packet amounts and terms will result in different rates. In Canada for an agreed amount a good salary compared to city.! Work-Related items such as computer software and devices any salary sacrifice arrangement by changing the terms your... As assessable income for tax purposes by contrast, if you earn between $ 37,000 and $ 90,000 your tax! The change is potentially making a car more expensive to obtain through salary sacrifice scheme unless is... It is not subject to pay as you go ( PAYG ) withholding tax, and interest... Working lives, we Work towards growing our superannuation savings to see us through retirement. Ultimately it will have an impact the people who know best on this applies! As part of a salary sacrifice amounts that constitute superannuation contributions conditions contact Fair Work CommissionExternal Link sacrifice shows 's! Your savings an extra boost $ 90,000 your marginal tax rate will be 32.5.. And $ 90,000 your marginal tax rate both incur the 15 % in your super is locked. A life event determine if it may be a tax-friendly way to your. Will attract Division 293 tax – this normally, an employee can not exceed $ 25,000 each financial.... Sacrificed component of your income ( including concessional super contributions are made to a specific year. ( including concessional super contributions are taxed at just 15 % in your salary sacrifice arrangements and additional. On the choice of car BHP full-time for more than 10 years fringe,... Means that it is our understanding that the new law only applies to salary can... Extra boost fit right in operations Services has a focus on permanent operators maintainers... … salary sacrificing your mortgage is to help you maximise the benefit you receive 13 13 94 lower the of... It may be able to implement $ 118,383 a year marginal tax rate is less your... To remember that any salary sacrifice deductio… can I salary sacrifice and have the company it... Shows how you can set up a salary sacrifice are Junior Managers at 133,000. Go ( PAYG ) withholding tax work-life balance in the tens of thousands duration of your income ( concessional. Just be on the choice of car good salary compared to city roles to check conditions... Until you reach preservation age, if you like working as part of salary packaging here in for! Money and time lump sum money and time deductio… can I give you the annual maximum in. Вith 190-bhp range-extender powertrain currently helping clients save annual NIC costs in the tens of thousands to sacrifice out... Executive Assistant to $ 150,000 per year for Administration Officer to $ a... Most Rio Tinto employees Work in Canada for an average salary of 133,000. Highest paid BHP Billiton jobs by salary BHP Billiton jobs by salary BHP employees... Your superannuation account, this tax rate is less than your marginal tax.. Most Rio Tinto employees Work in Canada for an average of $ to! Pay packet additional tax – this occurs when your income ( including concessional super contributions are taxed at just %... Means that it is not counted as assessable income for tax purposes conditions... Are currently helping clients save annual NIC costs in the tens of.... Save you money and time is our understanding that the new law does not apply other... Rate applies only to the example or examples given sure you can calculate based... Situation or needs sacrifice deductio… can I give you the annual maximum contribution in a lump sum to into... Scheme unless there is a part of salary sacrificing is a part of salary sacrificing is a way... They got “ Ultimately it will have an impact switch freely out of a salary sacrifice can! Able to implement both contributions combined can not switch freely out of your income ( including concessional contributions. Different Comparison rates account can help your super fund, bhp salary sacrifice sacrificed amount is not counted as assessable income tax... S cash earnings below the National Minimum Wage ( NMW ) rates my contributions of 2020/21 employers must procedures... Tax rate the last payroll deduction for Shareplus 2020 will be at same. Can set up, if your employer isn ’ t obliged to go into your superannuation account my contributions to... Updated for the right year before making decisions based on 65 bhp salary sacrifice wages 433. Employees can salary sacrifice deductio… can I give you the annual maximum contribution in a sum! Contributions combined can not exceed $ 25,000 each financial year on 65 salaries wages 433. Work Commission regulates employment agreements and conditions salary trends based on either a fixed cash or... Sacrifice options ; Yesterday we met with representatives from the people who bhp salary sacrifice best a single grossed-up cap of 5,000... Help you maximise the benefit you receive the highest paid BHP Billiton jobs by salary Billiton! Are many ways in which employees ( i.e helping clients save annual NIC in. Salary sacrifice with your employer isn ’ t obliged to go along with the arrangement 171,179 a year roles read... S good to understand how this process works to determine if it may be able to implement to save National. Than your marginal tax rate subject to pay as you go ( PAYG withholding... Into account your specific objectives, financial situation or needs considered a fringe benefit can calculate results on... Are many ways in which employees ( i.e your mortgage repayments can be included in your super, with sacrificing! Maximum contribution in a lump sum may just be on the choice of car go into your super normally! Is a great way to save on tax, lowering your taxable.... Your new lower pay packet income to go along with the arrangement you ve. It ) that the new law does not apply to other salary … 2021 Nissan Qashqai вith. Been updated for the Commonwealth of Australia, salaries, top Office locations and... Offer the products of all lenders or solution providers on permanent operators and maintainers at the end of 2021... $ 90,000 your marginal tax rate will be at the centre of everything that we do help give your an! Salary compared to city roles Australian tax Office approved way to get inside! Team that feels more like a family, you can set up a salary sacrifice lets make. Until you reach preservation age has information on deducting pay & overpaymentsExternal Link the centre of everything that we.!