Can I use salary sacrifice to pay off credit card debt?
If your employer directly pays off your credit card instead of paying you a salary a debt payment fringe benefit will result, your employer is then taxed for the money at a high rate instead of you making it unlikely your employer will agree, though if they do then by all means go for it. If your employer is a hospital or non-profit organisation then they will agree, as they receive certain FBT concessions. Here is an question on FBT/salary sacrifice that i have answered earlier: http://answers.yahoo.com/question/index;… Motor vehicles are often a good salary sacrifice option, though if your only signing a 1 year contract it won’t be worth it.
