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Sal sacked?

21 September 2010 / Robert Woodward , Shawn Healy
Issue: 4273 / Categories: Comment & Analysis , Employees , Income Tax
ROBERT WOODWARD and SHAWN HEALY wonder how a tax adviser should respond to the question, ‘salary sacrifice: is it still worth it?’


  • The original salary sacrifice.
  • Encouraging green ways of travelling.
  • Home computer initiative attacked.
  • Salary sacrifice schemes must be open to all employees.
  • The future for salary sacrifice is rosy.

The current hot tax topic in salary sacrifice is its use in conjunction with company cars in particular cars with low carbon dioxide emission levels. This interesting development is not new: the first company car salary sacrifice arrangement involved an Austin A40.

In 1961 a Mr Bell entered into a scheme with his employer under which for a reduced salary he could have the use of an Austin which he could return if 14 days’ notice was given and see his salary revert to its original level.

The tax treatment of the payment made by Mr Bell was challenged...

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