If you have salary sacrifice, this should be entered in as a ‘pre-tax deduction’ on the income page (under your PAYG employment), though if it is a superannuation-related salary sacrifice, this should be recorded under ‘Superannuation’ in ‘other assets. With regards to the novated lease or car salary sacrificing arrangement, the best way to account for this is to enter in:
- Pre-tax component: Enter the pre-tax deductions under the ‘Pre-tax Deductions’ section on the income page. This accounts for the payments made before receiving your salary and reflects them accordingly on the Dashboard.
- Post-tax component: Record the post-tax out-of-pocket expenditure amount for car payments under ‘Bill Payments’. This captures the post-tax expenses associated with the car. Whether or not these expenses are tax-deductible depends on the purpose for which you are using the vehicle. If it is for private use, consider categorizing it as a standard expenditure.
- Balloon payment/residual amount: As this is a future amount and doesn’t affect your current cashflows, it should not impact your present financial situation unless you are already provisioning for this balance.
👉 Empower your finances with Moorr’s cutting-edge technology! Tap here to download on iOS or get it here on Android and start your journey to financial success.
