According to the ATO, a pre-tax salary of $100,000 will be taxed roughly $23,000, whereas a $90,000 salary will be taxed around $19,700. Making lease payments before tax is deducted reduces your obligations by $3300 per annum or $16,500 over a five-year l

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Overthecourseoffiveyears,optingtomakeleasepaymentsbeforetaxdeductionscanresultinsignificantsavingsonyourtaxobligations.Forexample,ifyouearnapre-taxsalaryof$100,000,youcanexpecttobetaxedaround$23,000annually.However,bychoosingtomakeleasepaymentsbeforetaxisdeducted,youcanpotentiallyreduceyourtaxobligationsby$3,300peryear.Thismeansthatoverafive-yearperiod,youcouldsaveatotalof$16,500intaxes.

Ontheotherhand,ifyouearnapre-taxsalaryof$90,000,youcanexpecttobetaxedaround$19,700annually.Bymakingleasepaymentsbeforetaxdeductions,youcanpotentiallyreduceyourtaxobligationsbythesameamountof$3,300peryear.Thiswouldresultinatotaltaxsavingsof$16,500overafive-yearperiod.

Itisimportanttoconsiderthepotentialtaxsavingswhenmakingfinancialdecisionssuchaswhethertomakeleasepaymentsbeforetaxdeductions.Bycarefullyevaluatingyouroptionsandseekingadvicefromafinancialprofessional,youcanmakeinformeddecisionsthatcanhelpyousavemoneyinthelongrun.

Inconclusion,makingleasepaymentsbeforetaxisdeductedcanprovidesignificanttaxsavingsovertime.Bytakingadvantageofthisstrategy,youcanpotentiallyreduceyourtaxobligationsandkeepmoreofyourhard-earnedmoneyinyourpocket.