Tuesday – Is it a tax fiddle?

I don't understand how it is possible. I've set up a legalized tax fiddle that is allowed under federal law over here. I'll explain how it works, and then you'll wonder how it is possible. I'm not completely sure that I understand completely the whys and wherefores, but here are the bare bones.

I've agreed – for a small fee every fortnight (we are paid fortnightly) to have chunk of my wages taken out of the account before it is taxed. This money then is put into an account andz I'm able to access it using a dedicated visa card to pay for living expenses (food, fuel, and anything else that I want, if the company accepts Visa card).

If you want numbers where is some as best as I can explain. Each fortnight before my pay is put into the bank, $350 is moved to the other account, before tax. Then the amount of taxable pay I receive is a smaller amount, and so is taxed a lot less. Two days later the $350 arrives in the other account, and I'm able to use it for living expenses. It works out to about $100 for fortnight more in real terms than before.

Now the why – because of the lack of workers in the public sector, the government has offered a large tax break to those companies to try and keep their staff. I still don't really understand it, but I'm allowed to "package" about $10,000 per year. This doesn't count the tax-breaks on car payments (if I had them), private health insurance (I'm already getting a large tax break on that (it is mandatory for foreign workers to have Private Health Insurance)– being a public sector worker), and a load of other things.

Later today I'm off out for dinner at a friend's house. It is Jamie and Julie, up in Sorrento. I have always had good food there, and a load of fun, and I don't think that tonight will be any different.