She Wanted Vanilla...

the Order Kerni Whoalbury and a waddery woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on a wondery country, acknowledging the elders, the ancestors and the next generation coming through as this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow.

which this week is all about explaining salary packaging. And we're going to be unpacking something that you slid into our DMS about and this week we're talking about taking a step back in your career to support your partner's goals. It's just GRICI. How has your week been? It's been good.

and also her hands party. I obviously haven't uploaded any wedding pictures yet. Because she hasn't uploaded any wedding pictures yet. Yeah, I feel like those are the rules, Like you're not allowed to post pictures of the bride and groom until the bride and groom have posted pictures. It goes without saying it's just seen pictures of her on the internet already. Am I allowed to be salty about that or not. I'm not my wedding, but like, I wouldn't do it. But that's just me and we all we all.

ready to hear some of their comments. Absolutely an alienating, dangerous, and perversive film that is a lot I want to see it.

had to say about the Barbie film. And you know what you're selling it to me, guys, You are absolutely selling it to me, I didn't need that one hundred and forty five million dollars.

about the Barbie movie. You might have noticed that we are lacking a beck today.

over it. I really appreciate it. But Beck is in here, and to be honest, Jess and I could not do her broke tips justice. So how might we dive straight into your community wins? What have you pulled out this week? My friend?

they did? They substituted it same brand, technically still plant based, but choc mint ice cream is not good with a crumble. So thanks for thinking of me and not giving me an ice cream I won't eat. But also I did have to take myself to the shops.

food because you know they're working with you. Mike Sis I've been posting on Instagram about Mars Spoons is like twenty fifteen. I think they owe it to me now at this point, like I've worked for this ambassadorship. Well, like just put the girl on the rostashsh she's getting really annoying, like she thinks she works here. You know that person that's so obsessed with one brand, they're like, only wear that brand. That's me with food amazing Maley, we love it, we love Maley. Big fans here.

it so much. All right, Jess, let's go to a really quick break, because on the flip side, I think we're going to get into the juicy conversation of what's salary packaging actually means, and we're also going to be unpacking a question that you slid into our DMS about and we're going to be talking about whether it's okay or not to take a step back in your career to support your partner's goals, So don't go anywhere. Welcome back, everybody.

the money, you can actually search keywords. Yeah, like you can type in salary packaging, and then what would happen, Jess? You would see an episode from the seventh of April twenty twenty one. What's it called nice in brackets? Salary package? Ay? I feel like you might have had something to do with that excellent name.

do heaps of different things here. So essentially, salary packaging is when you were arranged to receive less income tax. So let's just use you as an example, Jess, I would pay you less, but you would get a benefit

that is paid for by my company. So instead of the tax rate applying to you, which you know would probably be thirty two point five cents in, every single dollar gets packaged up and the benefit comes out of your pretext salary, which is kind of sexy because you're thirty two point five percent better off in this particular circumstance. So you could package up things like a car, or you could do your mobile phone, or you could do you know, a heap of different things that are related

to your job. Or are something that might benefit you. So I know that in a lot of circumstances, people want a salary package they rent, which is possible. That's kind of sexy, thirty two point five percent better off. I'm going to try that. People might want a salary sacrifice childcare, or you might actually want to do this for supranuation. Obviously, the superannuation system is a little bit different,

but it's still salary packaging. So the important thing is that most employers will offer salary sacrifice to super, but most will actually restrict the benefits of salary packaging in general because it is a lot of admin like it's quite hard to keep track of as a small business, so it's not in their best in try to do that. So salary packaging can fall into three different categories. So we've got fringe benefits, we've got exempt benefits, and supranuation.

So we discussed supranuation already. That's where you sacrifice some of your pre tax income to supranuation to put it away for your future retirement. There is a different tax system inside super which is going to tax that contribution at fifteen cents in the dollar. But when you are at a normal salary band like thirty two point five cents in every dollar, you're clearly more than fifteen percent better off. So that's kind of sexy, right, love it.

The other one is fringe benefits. So fringe benefits can include things like salary sacrificing for a car, could be health insurance, it could be loans usually for a car, school fees, childcare fees, or other personal expenses, and your employer is going to pay what's called FBT or fringe benefit tax on these benefits. That is a completely different

set of benefits compared to exempt benefits. So an exempt benefit to go through that really quickly is things like portable electronic devices like phones and laptops, computer software, protective clothing, tools of the trade, and your employer doesn't have to pay fringe benefit tax on that. And that's because it's usually related to your employment. And so there's lots of different ways of doing this, and I mean, I'm getting pretty into it. Go listen to the episode. We cover

all of it. And as much as it was done a couple of years ago, FBT and salary packaging hasn't changed significantly. I just think the most important thing to think about is it's not free money. I know that it sounds really sexy, and if you're going to get a car, of course, if salary packaging is available, that's something you should consider. However, I do think a lot of people use their salary packaging kind of just as as an excuse to overspend in areas that they wouldn't

have if the money was in their bank account. So like, if you're salary packaging food and entertainment, that food and entertain allowance actually can't be spent on groceries. It actually has to be spent on dining out. Yeah, and therefore you're maybe dining out a lot more than what you would have dined out had that money been in your account and been allocated to another goal or expense. So I think it's just so important to think about, well,

how is this going to serve me? Because I mean, if you are needing to buy a new family car, well then maybe that is a good idea to save some tax and you know, put yourself in the best possible position. However, we've got to make sure that we're not then overspending on the car just because you go, oh but it's much cheaper now, Yeah, you feel like you've got all this extra money when it's still money that no, we should be making the most of it.

And I think the other thing when it comes to salary packaging is how committed you are to your employer. I know that sounds really negative, but like Jess, if you weren't planning on sticking around, that's a really big I guess salary responsibility that you have with me that you know a new employer might not immediately pick up

on and needs to be taken into consideration. So if you're doing something like an ovated lease, which again is different but often falls into the same conversation bucket, that might mean that you have to get rid of your car when you get a new job, and if you're not planning on staying with that employee long term, or maybe let's rethink how that might work structurally. So I

think there's a lot to consider. But essentially, salary packaging is where you sacrifice part of your salary to reduce your tax and that kind of sounds sexy if used in the best possible way, But as I said, a lot of people use it in a way that kind of gives them permission to overspend in a way that they wouldn't have if I had put that cash in front of you, Jess, we do not support that here. No,

I think it's about making the most of it. Like, if you've got access to salary packaging, my friend, get it clean exciting, especially if that is in your budget. Like if you've gone and done your ses on the money budget and casually plan and you know that each and every single month you spend X on dining out, well, why not pull that budget straight into salary packaging so it can make sense if you can do the same

for rent. Talk to your employer about it. These are things that could potentially put you in a better financial position. I just don't want to see the system not abused. But you know what I mean, I just don't want people taking it and going, oh, it's free money because it's tax free. I feel like the second you say tax free or tax refund, people assume that they didn't work for that money, and that's not the case. Oh that's super interesting.

But it's in a remote town. I currently work as a makeup artist and I have a really good client base where I am, so I'm having a hard time taking steps back in my career for him, even though it would be a great financial opportunity. I'm just not sure how should I approach this.

I think, regardless, it's a lot to leave behind. Firstly, her career. It sounds like her existing client base, all of the work that she's done to maybe build up her personal brand in the area, and the connections that she's got. If she's moving somewhere remote, I'm imagining perhaps there may not be as many opportunities to do that kind of work, depending on just how big or small

the town is. And then you're also moving away from your support network, your friends, your family, your favorite coffee shop.

What's the expectation of you? So are you just staying at home while he goes and makes heaps of money And that's really good, But you don't have a social life, you don't have a job that's probably going to lead to you you feeling pretty flat. Are you expected to go and get a completely different career because unfortunately, you know, let's pretend you're moving to KARTHA makeup artist is probably not needed up near the mines, right, It's not something

that there is a lot of demand for. And that's so fine, But would there be the expectation that you get a job, you know, at the local shops. If so, how is that going to nor issue? Are you going to feel empowered and engaged in the same way that you are feeling that way in your current job? And I think that there's just a lot to take into consideration. And I think the tone of this message really beautiful, Like I love that you want to support your partner.

I really really do. But when we talk about you know, there's this opportunity to partly own a business interstate stunning, but it was the financial driver, Like, is there the opportunity for him to maybe start a bit earlier on, maybe not step into a pre established business, but if he's super passionate about that, could he do that somewhere else. As much as this is a money podcast, money isn't absolutely everything. We need to find that balance of well,

what's going to work for us? Like if you took me out of the city, I wouldn't have a purpose. I'd be very upset, not at my partner. I just wouldn't have a lot to do. So I feel like it's really important to think about, well, what does your

current lifestyle look like? You're right, Jess, what if your lifestyle involves getting up every single morning going for coffee and you know, maybe you and your partner have worked out that that's okay to have that level of compromise, But what level of compromise are you willing to take on in order for them to thrive? And if that's the case, do you both need to go Yeah, Like I am a very big believer in, you know, just making things work and not everything is super easy always.

But maybe you kind of do a five FO thing where you are a makeup artist and you only have set days that you might work and you go and do the remote stuff with your partner for a week on and off. Like, I don't know how that could work, Yeah, but there might be a way of still keeping a foot in the door and staying engaged in your current career while still supporting your partner to maybe do this,

because who knows if it's going to work out. What if he gets there and he's like, this is the worst thing I've ever done.

like makes up really random situations in my head? Still love me? If I'm an egg, if I was a worm, would you treat me the same? Would you still think I'm pretty that's me? But have you not spoken to your partner about like moving overseas? Not really nice?

He was like wait what? I was like, do you want to move to London? Like? And he was like, no, where do you put London from? I don't know. I think everybody who moves overseas is going to live in London. You know what now that you say that, a lot of people have. I feel like, if you're going to go work overseas, like you're not going on a holiday, it's easy londyar And yeah, I feel like anyway, that's me stereotyping. But I remember going would you ever move

to London? And he was like no? And I was like, would you move to Singapore? No? Would you move to Sydney? And he's like, only if there was a really good career opportunity or you got a really good career opportunity And I was like who, no good answer. So I think it was a good conversation to have because you know, obviously pets came into it, and I can't like, I'm not the type of person that's like, oh well, if the opportunity came up, I'd get rid of my pets.

I was say, bring it back around. What was the pet thing?

was like, hold up, whose responsibility is this? Yeah? Like, I'm I think just a financial ex financial planner at heart. So I was like, well, who's financial responsibility will this speak? Are you going to take the cat? Am I going to take the cat? And like, we both people, So he was like, well you don't get both of them. I was like, yes, but are you going to separate them? Cruel?

I know right anyway, So we had all of this conversation and there was that discussion of would you move for an amazing opportunity and we both kind of said, look, it would have to be a life changing opportunity to even consider it, because I feel like getting pets and talking about home ownership is really putting roots down in a way that we hadn't before. But I think if we had been twenty two and didn't have pets, maybe

we would have jumped at it. So I think it's just such a sticky situation because it's going to be different for absolutely everybody.

right at all. She'd just be so flat, like that's her entire So I just feel like you're so passionate about what you do that maybe you need the passion anyway. So someone said, my husband has just taken a step back to help my career, soor I would do the same thing for him. Someone said, you really need to elaborate on the word partner for example, boyfriend or husband. I don't think so. I think it's a bit old school. I agree, what.

you're wasting theirs by AHD White, Black and White. Someone else said, what are your current goals and values? Would this move support this great classic VD answer? Someone said, you need to talk to your partner about it, thanks rastus. Someone else said, trial long distance for a little bit and see if he actually likes it. If he does, then revisit the conversation. That's a good idea. I like that. Someone said, oh man, this one needs a million percent

more information. Agreed. Yeah. Someone else said, does he have to move to run the business? Can you live apart for one year to set yourselves up? Someone else said, Northern Territory resident here, you also need to think about all the hidden costs of living remote and not just getting financial benefit, which is true. Everything's more expensive living remote, No, so might eat away at the potential larger benefits. Someone else is on the same page as me, and they said,

could she split her weeks between the different locations? A big thing for someone to take on as well though, like just even the mental load, but also financially. What now you have two houses? Yeah, flights every couple weeks or every month. Someone said, can't you work out a way to do both? Could you maybe do a fly and fly out type of thing. So I think everyone's trying to just make everything happen all at one time. Yeah, I get it. Someone said, consider your happiness and career

in this decision. You worked really hard to build your current business. You don't necessarily need to put his first. And I think that's good. Someone else said, I'd go for it. She could set up in the next big town over if there is one.

the where and the house? Yeah, And I think at the crack of this conversation, what I would love to think is, regardless of what our opinion is, my opinion now think about all of this is I hope that you both have been able to sit down and look at the pros and cons for each person and have a very empathetic conversation where your partner can put themselves in your shoes and vice versa, because I think that sometimes in these conversations, one party gets this epic opportunity

and it's the best thing ever, and they look at their partner and go, butes, why don't you letting me do this? Like this is going to change our lives without seeing that maybe there's compromise, and every relationship has compromise in it, Like it's not one hundred percent you and it's not one hundred percent them, So you need to come to a resolution that works for both of you.

But the best way to do that is to have a conversation that not necessarily looks at what their perfect outcome is, but well, what is the opportunity on the table? How do we look at this pragmatically and go, all right, well, what is the benefit of doing this? What is the benefit of staying here? What would our lives look like if we went down this pathway versus that pathway? And I think that you need to have that holistic conversation and try and take your personal opinions out of it.

While you have that to then go all right, well, now, personal opinions, what do you want to do? What are you most drawn to? Because I would be most upset if I knew that they were just driving it because they really wanted to do it but hadn't really thought about your happiness.

make an investment or financial decision. If you do choose to buy a financial product, read the PDS TMD and obtain appropriate financial advice tailored towards your needs. Victoria Divine and She's on the Money are authorized representatives of money. Sheper p t y lt D A b N three two one six four nine two seven seven zero eight AFS L four five one two eight nine